Remote Work
January 4, 2021

Dhruvi J.

Hiring Independent Contractors in 2021

Even before the pandemic, the workplace was changing. 


However, in recent months, we've seen companies adapting to different methods of work, including hiring independent contractors. This has provided companies with a wider choice of accessing specialized talent and a means to engage independent professionals safely and easily. 


As of 2020, independent contractors made up 41 million in the US representing a third of their workforce. This number is expected to grow as we move into the future. 


We’ve compiled a list of compelling reasons why hiring independent contractors is important for your organization in 2021. 


1. Save money working with independent contractors


One of the many reasons companies choose to hire independent contractors over employees is the cost that is saved based on the working relationship. Employers can avoid providing traditional benefits, for example, health insurance, unemployment insurance, or even payroll taxes. 


Besides, working off-site would reduce the need for office space and supplies. Cutting down on these costs would leave your company with additional financial resources that can be used elsewhere. 

2. Find the right talent when you need it


With independent contractors working remotely, it is possible to source talent from the global talent pool. This allows you to choose contractors based on their skill level as opposed to settling for contractors only available locally. 


It is also much easier to end a working relationship when you realize the contractor isn't meeting your organization's needs. In some countries, like France, firing an employee is a difficult process and may force companies to hold on to low-performing employees as they work through the training and legal processes of termination. 


3. Flexibility and readiness to meet your organization's needs


With the flexibility of working with an independent contractor, you can choose to hire for a specific project for a short period. The client and contractor then both have the flexibility to continue or end a working relationship. Clients can choose to simply not renew the agreement for the next project depending on if the contractor is a good fit or not.


This flexibility is also beneficial in organizations that have a fluctuating workload. A contractor can be brought onboard as and when needed, increasing efficiency.


4. Reduced training costs


The benefit of working with independent contractors is that you always have access to the person with the right skill-set for a specific type of work. As contractors tend to hold a specific type of knowledge, they do not usually require any training to fulfill their tasks. 


This often translates to a higher level of efficiency. Contractors not only save you money but, also time, by skipping the training and onboarding processes you have when hiring a full-time employee. 


5. Reduced liability 


Working with independent contractors reduces your company's exposure to liabilities that come with hiring employees. 


Most of the protections in place for employees from health insurance, minimum wage, employment taxes, or paid time off do not apply to independent contractors. This makes your company less susceptible to lawsuits as well as other legal considerations. 





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