Hire or Contract Your Team?

As your business experiences growth, so does the ever increasing need to consider if you need to take on new team members or outsource some of your work to a contractor.  After all, you can’t keep building momentum with just yourself unless you are highly efficient with systems and strong time management skills in place. With current legislation governing how you manage your team, increasing costs in superannuation, complex laws regarding terminations and more, it is rapidly becoming a specialist field that needs specialist HR assistance.

So do you hire or contract your team? Perhaps you have chosen to put on a new team member and they seem like a beautiful fit for your business model so you shake hands and they commence working for you. If you don’t have employment contracts for them, then you really need to consider getting some in place FAST. If an employee leaves you and there is no contract to show evidence how they were employed, they could claim every hour they worked for plus a casual loading (currently around 25%) and that’s surely going to hurt the hip pocket and the hand shake becomes worthless. Failure to ensure this could end up with a Fair Work Claim without a written contract – it’s their word against yours. On top of that, the job description needs to be implemented and fit the actual tasks required and constantly updated as the position develops. Are you also prepared for times when they are sick or go on leave?

It is a complex decision that requires serious thought prior to taking on that new team member. I believe if that new team member is crucial to driving the revenue for your business, then they should be a permanent part of your team and given incentives to drive it. Give them the tools they need and encouragement to go for it and you will see better results together with a long standing relationship over the dictatorship that whips them constantly.

Alternatively, if that new team member doesn’t need to be part of your business every minute of every day and doesn’t have a direct impact on your revenue i.e. bookkeeper, IT and website, marketing specialist, then this is the ideal team member to outsource thus only paying for specific tasks and/or results.

Ask yourself if this current demand on your business is a seasonal peak or a special project only or can you envisage this demand to only continue to grow? Generally if it is just a seasonal peak, then having a contractor for that period of time is ideal solution. The contractor is responsible for their own costs i.e. taxes, tools, transport etc. and is paid on a contract basis with or without a specific time frame.

When you have outsourced specific departments of your business, then you can be freed of the tasks that are not your core skill set, the tasks that clog up your daily routine and prevent you from being the specialist in your field. When your business is in the ‘start up’ phase, outsourcing is an excellent way to manage your budget without the costs associated with employing a permanent team member and giving you access to numerous specialists. Talk to me about your specific needs and perhaps save you a bundle.