Disadvantages Essay

279 WordsFeb 10, 20092 Pages
There are several distinctions between hired employees and independent contractors as part of the sales force, some advantages and some disadvantages. To be considered are: quality control, talent retention and cost considerations to name a few. Hired on employees tend to take a more personal interest over the company and its products and are more likely to exhume a positive attitude. OF course, most employers will perform a background check on all hired sales personnel, making it easier to identify potential problematic employees (or not), while a company may never be sure over the hiring techniques of an independent contractor. Unlike hired employees, whom can be monitored and supervised directly, independent contractors generally have some autonomy in deciding how best to perform the task they have been hired for. Monitor too closely, and an employer risks treating an independent contractor as an employee (and face the IRS). Furthermore, as they (independent contractors) are hired on for a specific purpose, independent contractors may come and go, which may be an inconvenience as the quality of work will no doubt differ from contractor to contractor. Lastly, a disadvantage over hiring employees over independent contractors is the cost considerations involved. Simply put, employees cost more over hiring an independent contractor as “the upfront, fixed costs - taxes, unemployment insurance, health benefits, etc. - for employees can be steep,” (The Green Sheet, 2007), though it may be argued that a competent sales force which has been hired on may ultimately save the company money. The Green Sheet, (2007). 1099 or W-2: What’s Right for You? The Green Sheet, February 12, 2007, Issue 07:02:01.

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