Advantages and disadvantages of using a contractor or subcontractor
Some of the advantages and disadvantages of using contractors and subcontractors.
Your business may need additional resources to carry out specific or specialist tasks. You may want to use the services of a contractor or subcontractor for this, although it is important to weigh up the advantages and disadvantages of contracting and subcontracting.
Advantages of contracting and subcontracting
Flexibility
You can hire a contractor and/or subcontractor when you need more flexibility with a specific job or task.
Short-term specialist expertise
You can use a contractor/ subcontractor for one-off jobs and jobs requiring specialist expertise or fast turnaround.
Focus on core business
Using contractors and/or subcontractors enables your own staff to concentrate on the core business.
Short notice to start a project
Some contractors and/or subcontractors can start the work or project at short notice, even when large numbers of workers are required.
Set out the contract type and duration
You can often specify the type and duration of the contract you need for the contracted job.
Temporary cover
Contracting and subcontracting allow you to obtain temporary cover for a permanent post or a work project.
Get the most from contractors and subcontractors.
Disadvantages of contracting and subcontracting
Higher costs
Contractors/subcontractors may cost your business more than the equivalent daily rate for employing someone.
Loss of skills
By relying on contractors and/or subcontractors, your business does not acquire or develop skills in-house.
Staff resentment
Your own staff may resent contractors being paid more money for doing similar work to them.
Poor quality work
If you use a contractor that then uses a subcontractor, you have no direct control over the quality of the subcontractor's work.
No regard for business culture
Contractors and/or subcontractors may not appreciate your business culture and may lack the motivation and commitment of your own staff.
Tax implications
Workers can be employees or subcontractors of the contractor - you need to understand relevant tax implications and other rights. See employment status of contractors and subcontractors: Tax and workplace rights.