Top 5 Reasons Businesses Should Rethink Hiring Contract Talent vs. Employees
Business owners have been doing a lot of creative employment restructuring in the last couple years to stay within new Affordable Healthcare Acts (ACA) requirements. More people are moving to freelance or contract workers to avoid paying for healthcare. But now the IRS is strictly cracking down on misclassification of 1099 employees and this could cost businesses up to $1 million in penalties come 2015.
No Cost Savings
When you account for the costs of managing freelancer tracking hours, HR hours spent evaluating and seeking alternative employee structures, monitoring contract relationships and potential IRS penalties, you come out spending more than hiring an employee through a solution like Nexus Catalyx.
Freelancers and Contract employees, have a much higher turnover rate than full time employees. Your ability to train and retrain people in these positions could become costly.
Most contract employees do not have the sense of ownership and responsibility that employees have. When we are all invested in the same project/business, and contribute as an equal team, performance is increased and profit increases. Employees with ownership take more initiative, lead stronger teams and take responsibility for growth.
When an employee has a greater sense of job security, they are able to focus and enjoy their job more. This leads to greater moral for the individual employee and the team around them. We all know that high morale can be contagious. With a greater sense of job security through employee status, workers are more like to have a higher morale.
By providing alternative workforce solutions, Nexus Catalyx can help you address each of these concerns by hiring Nexus Employees as your business’ employees and relieving costs and stress of hiring the right employees.