Strategically thinking about hiring and classifying workers is essential for the long-term success of a startup, whether to hire employees or contractors depends on financial forecasting and human resources requirements.Â
When starting a company, the cost of labor can be a significant expense that is often overlooked. It is crucial to think about hiring strategically to succeed in the long term and to classify the people who work for you. When growing startups begin to scale up, both parties must be clear on the terms of employment. It’s essential to make contractors feel like employees, and not just part of your cash outflow. For employers, you may notice less effort, commitment, and dedication to the wider company with contractors, while for contractors, there’s less security and incentive. The decision to hire an employee or a contractor should be based on the company’s financial forecasting and human resources requirements.Â
