Employee Contractor Decision Tool

As a business owner or manager, one of the most important decisions you will make is deciding whether to hire employees or use contractors. While both options have their advantages and disadvantages, there is no one-size-fits-all answer. However, there are certain factors that can help you make an informed decision.

To make the decision-making process easier, we`ve put together an employee contractor decision tool. This tool will help you assess your needs and determine whether an employee or contractor is the best fit for your business.

Consider Your Budget

One of the first things to consider when deciding between an employee or contractor is your budget. Employees are typically more expensive than contractors since they receive a salary, benefits, and other perks. On the other hand, contractors are paid on a per-project basis and do not receive benefits.

To determine your budget, think about the amount of work you need to be completed and how long it will take. Additionally, consider any other costs associated with each option, such as training and supervision for employees.

Assess Your Workload

Another important factor to consider is your workload. If you have a steady stream of work that requires ongoing attention and a consistent level of productivity, it may be better to hire an employee. Employees can be trained and managed to meet your specific needs and can work within set hours, making it easier to ensure deadlines are met.

Conversely, if you have a fluctuating workload or a specific project that requires specialized skills, a contractor may be the better option. Contractors are often freelancers with expertise in a particular field and can offer their services on a project-by-project basis. This allows you to hire a specialist only when you need them and avoid paying for downtime.

Determine Your Level of Control

Finally, you`ll need to decide the level of control you want over the work being done. Employees work under your direction and follow company policies, which gives you a greater level of control over the work being done. This can be important if you have strict quality standards or need a particular work style to be implemented.

Contractors, on the other hand, work independently and may have their own way of completing tasks. While you can set guidelines, you may have less control over the final product. However, this can also be an advantage since contractors often bring their own expertise and fresh perspective to the table.


Choosing between an employee and contractor can be a difficult decision, but using our employee contractor decision tool can help you make an informed choice. By considering your budget, workload, and level of control, you can determine which option is the best fit for your business. Whether you choose to hire employees or use contractors, the most important thing is finding the right people with the right skills to help your business grow and succeed.

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