The Benefits and Disadvantages of Hiring Consultants

You can reap some rewards by contracting with independent contractors/consultants instead of hiring new employees. The advantages include:

  • You get special expertise
  • You use them as needed
  • You save on tax contributions
  • You save on benefits
  • You have flexibility in the relationship
  • You can terminate them easier than terminating employees

But using contractors/consultants can have its own set of disadvantages:

  • You may not have the same continuity in the relationship as you would have with an employee
  • You may have to pay high fees to the consultant
  • You have limited control over the consultant
  • You run the risk of tax problems if the consultant in fact operates like an employee