Pros and Cons of Contract Employees

Nearly one in five small business owners say they’re more likely to hire an independent contractor than a full-time employee, according to results from’s August Small Business Scorecard, and they’re not alone. The use of contract employees is not limited to one industry or business size.

Although hiring contract workers can provide benefits to businesses, there are also risks associated. So do the benefits outweigh the risks and how do you mitigate the risks, should your company choose to move forward with the hiring of independent contractors?

Advantages of Contract Workers

There are a number of benefits to hiring an independent contractor as part of your workforce, as opposed to an additional full-time employee, including cost savings and staffing flexibility.

According to a guest article on Forbes regarding the pros and cons of hiring independent contractors, there are several major advantages to using independent contractors, “with financial savings topping the list.” Although employers oftentimes pay independent contractors more per hour than they would pay employees, with contract workers, employers aren’t subject to many of the other expenses that are typically incurred when hiring full-time employees, including: office space and equipment, a share of the employee’ Social Security and Medicare taxes, state unemployment compensation insurance, or worker’ compensation insurance.

Hiring contract workers also provides greater staffing flexibility than hiring traditional employees. Because most independent contractors bring specialized expertise to the job, they can usually be productive immediately, reducing time and costs of training. This, combined with the idea that employers can hire for a specific task or project, make contract workers a good solution for fluctuating workloads.

Disadvantages to Hiring Contract Workers

Although there are a number of benefits to hiring an independent contractor, as opposed to a full-time employee, hiring a contract worker can also pose some risks including: the potential of a government audit, sensitive company or customer information leaks, and malware infections and unauthorized intrusions.

Hiring a contract worker also poses restrictions on firing. Unlike with a traditional employee, your right to fire an independent contractor depends on your written agreement with that individual. As a result, if you fire an independent contractor in violation of the agreement, you could be liable for damages.

However, legal ramifications, should you choose to fire a contract employee, are only part of the risk associated. Depending on the procedures put in place, a former contract worker could have access to internal systems post-engagement. Even in a relationship that does not result in a disgruntled employee, access to internal systems post-engagement, can pose a threat for the hiring organization.

A Solution for Managing Contract Workers

As might be expected, some of the greatest disadvantages of hiring contract employees come from the threats involving how these contractors access data both during and after the engagement. What if you could reap the benefits of hiring contract employees while eliminating these data-focused threats? Moka5 does just that. Benefits of the M5 for Contractor Workforce Solution include:

  • Policy-based secure corporate access regardless of device or network
  • Secure container eliminates data leaks and IP loss
  • Bare metal support reduces management/security costs and complexity of corporate supplied laptops
  • Reduction of CapEx costs related to corporate supplied laptops
  • Simplified image management, updating, and wiping
  • Unified management console for laptops, tablets and smartphones
  • Offline capability enables productivity even in low bandwidth environments

Considering hiring contract employees or need to better manage data being using as part of existing projects? Find out how you can test-drive Moka5 for free.