Should you hire an employee? Advantages and disadvantages

July 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!

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