What a day, plenty of work and no helping hands. Where is the new team?
How to structure your business is at times tough, both employees and subcontractors have pros and cons.
Employees
Are paid by the hour which must not be below the minimum wage set by the government.
You are required to pay benefits such as sick leave, vacation leave with pay, super and other allowances
Having employees gives you people that you can rely on during the times when you are not around.
They are trained by you
Employees have no commitment to the company
The employer is to provide all equipment and tools of trade
What do employees do when a job is cancelled?
If you are a good employer, most of your employees will stay with you and you will have skilled and experienced staff in your company. It's a give and take situation - you pay them, provide them their compensations, and in return, you get reliable, skilled, and experienced staff that can make your company.
Subcontractors
Are paid a %of the job total or invoice you for the job
They are loyal to the job
Subcontractors have their own insurance and pay their own super.
They are trained and you are not required to pay them for training.
Subcontractors could send different people.
They provide their own equipment and tools of trade
Subcontractors are great for the not so regular work. They are great when you are starting out and growing your business but if you do not have a tight contract on a job % total you may not find it financially rewarding.
Quote "Encourage your people to be committed to a project rather than just be involved in it.'
Richard Pratt
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