Should you hire an employee? Advantages and disadvantages
Author: Russell SmithJuly 16, 2015
Get an employee – advantages
You have the chance of hiring someone who can have a huge impact on your company
Their commitment will be (should be!) more than a freelancer, not just to the delivery of the work but to other aspects of the business as well
Harder for them to leave or be poached by a competitor
Likely to be cheaper than a freelancer (even with holiday and sick pay)
You can plan your business around them
Get an employee – disadvantages
You have to officially become an ‘employer’
You have to manage payroll or pay someone to do it
You have to pay the taxman some more tax (PAYE/NI) as well as net pay to the employee – more complication and timing problems for your cash flow
If you’ve got nothing for them to do, you still have to pay them
If they don’t work out, it is more difficult to let them go than a freelancer
If they don’t work, they are more likely to mess with your brain and emotions than a freelancer will have the power to do!
You have to have an understanding of HR law so that you know what you are responsible for
You need Employers Public Liability Insurance.
You have to pay them holidays
Worse than that, you have to pay them sick (if they are sick!).
You’ll need to appraisals!