Hiring an Employee VS Subcontracting

July 8, 2018 660 views

A Collection of Articles About the Difference Between Hiring and Subcontracting

This post contains tips and advice related to understanding the difference between employees, and subcontractors, provided by a variety of authors, but first, a few brief points to consider.

When you subcontract, you’re bringing in someone that is already knowledgeable in the job requirements. For example, if you subcontract your IT services. The person already understands your computer and networking systems, you don’t need to train them you just tell them what you need, your expectations, and they will take care of the rest.

This works well, for example, if you are upgrading your computer system or putting in a brand new system, and you need someone on-site for three months to implement, manage, and train your employees. Rather than hiring someone, you subcontract the job allowing you to get the job completed effectively and not have to worry about finding work for that person after this project is complete.

A Few Benefits of Hiring a Subcontractor:

  • They are already experienced.
  • They have their own tools and supplies if needed.
  • You don’t pay payroll taxes for subcontractors.
  • You don’t need to provide consistent work for them during slow times.
  • You get expert services without investing in creating an in-house service.
  • You can use the subcontracting for short periods of time.
  • More in the resources below.

A Few Benefits of Hiring an Employee:

  • You have more control.
  • They work under your terms.
  • Employees are more committed and stay for the long term.
  • When an employee creates intellectual property while on the job, you own the rights to that work.
  • Employees are usually cheaper than a subcontractor when looking at an hourly rate.
  • More in the resources below.


Have a look at the resources included in this post to help you decide which is the best option for your business at this stage.

Which To Hire, Employee, or Subcontractor?

Independent Contractor vs Employee: Which One Are You?

Independent Contractor Self Employed or Employee | Internal Revenue Service

Direct Hiring vs. Subcontracting: When to do what? – Construction World

Subcontracting – type, benefits, cost, Subcontractors vs. employees, Working with subcontractors

Employee vs Subcontractor: How To Decide Which To Hire

Subcontractor vs Employee –  Pros and Cons

Pros and Cons of Hiring Employees vs. Contractors

Employee vs. Independent Contractor: The Pros and Cons | BenefitMall

Pros and Cons of Hiring Independent Contractors | Nolo.com

Pros And Cons of Hiring Independent Contractors

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