One of the ways of cutting cost in business is opting for independent contractors over employees. You can also employee women only, because they earn less haha!
READ: IMPORTANT THINGS TO TELL YOUR EMPLOYEES FOR BUSINESS SUCCESS
ALSO READ: THE COMMON TYPES OF EMPLOYEES IN KENYA
On a serious note though, there are circumstances where independent contractors or employees are the better alternative. You don’t simply jump in. Take a look at this table to learn about the differences between the two.
| Employee | Independent contractor |
|---|---|
| Mostly works for only one employer | Works for more than one employer to provide services required |
| Has to work within the hours set by the employer | Usually sets his or her own working hours depending on availability. |
| Mostly works at the employer’s place of business | May require to work in his or her own office |
| Usually receives employment benefits | Does not receive any employment benefits |
| The employer controls and directs his or her work | Mostly works independently |
| Does not incur costs or make investments in the work | Will incur costs associated with performing the work |
| Receives compensation in case of any workplace injury | Is not entitled to any compensation unless agreed otherwise in the agreement |
