Running a business means making important decisions, and one of the biggest is choosing the right type of workers. This isn’t just about getting work done. It’s about finding the best setup for your budget, workload, and long-term goals. Because selecting the right one can have a big impact on your company’s success.
Generally, business owners automatically hire full-time employees. But that’s not the only option. You can also hire freelancers or bring in contractors. Each choice has its own benefits and challenges. So, before deciding, it helps to understand what each type of worker brings to the table.
The Flexibility of Freelancers
Freelancers are self-employed professionals who take on small projects like graphic design, content writing, social media management, and bookkeeping. One of the biggest advantages of hiring freelancers is flexibility. You don’t have to commit to long-term contracts. Plus, you only pay for the work you need. You don’t have to provide benefits or full-time salaries. Moreover, it’s easy to find skilled professionals in various fields since freelancing is thriving in the Philippines.
However, hiring freelancers comes with challenges. For one thing, they may not always be available when you need them. If a project requires urgent changes, they might already be busy with work for a different client. Communication can also be tricky. You can’t expect them to answer urgent calls, especially if they work remotely.
Another challenge is that managing multiple freelancers can get complicated. Fortunately, Maya Business Deposit offers a disbursement tool that can be used as an effective payroll management system. Widely used by small and medium-sized businesses in the Philippines as their settlement account, you can also use it to efficiently and securely pay suppliers or vendors.
The Expertise of Contractors
Contractors are similar to freelancers but work under structured agreements. Businesses hire them to help with short- and long-term projects or temporarily replace employees on leave. Some also use this approach to test a potential full-time employee.
A major advantage of hiring contractors is their expertise. Many have years of experience and can handle complex projects efficiently. Moreover, since they work under a contract, they are legally expected to meet deadlines and deliver quality work.
However, contractors can be expensive. If they have specialized skills, their rates may be higher than hiring a full-time employee. Plus, when their contract ends, you might have to start the hiring process again if you still need help.
The Stability of Full-Time Employees
Full-time employees are the foundation of operations for many businesses. They work set hours, receive a regular salary, and get benefits required by Philippine labor laws. One of the biggest benefits of hiring full-time employees is consistency. They learn your company’s processes and build relationships with coworkers and customers. Another advantage is growth. Since full-time employees stay longer, you can invest in their training, which benefits your business over time.
However, hiring full-time employees requires more responsibility. You must pay salaries on time, provide government-mandated benefits, and follow labor laws. Even if business slows down, payroll costs remain. Managing full-time employees also requires HR policies and systems to keep everything organized. In particular, managing payroll for a small business can be challenging without the right payroll system.
Choose the Right Worker for Your Business
So, which type of worker is best for your business? It depends on your needs.
If you’re a startup looking to keep costs low, freelancers offer flexibility without long-term commitments. Meanwhile, hiring a contractor might be the best choice if you need specialized skills for a big project. On the other hand, full-time employees provide reliability and daily support if your business is growing and you need a steady team.
It’s also important to consider costs. While freelancers may seem like the cheapest option at first, hiring them frequently can jack up the expenses. Meanwhile, contractors charge higher rates, but their expertise can make them worth the investment. On the other hand, full-time employees require a steady budget, but they bring long-term value.
The type of work also matters. Occasional tasks like logo design or content writing are often best for freelancers. Meanwhile, technical roles, such as software development or construction, usually require contractors. Finally, customer service, administrative work, and daily operations are better suited for full-time employees.
Keep on Top of Your Salary Payment with the Help of Maya Business
Many businesses use a mix of freelancers, contractors, and full-time employees to stay efficient. The key is balance. Think about your budget and long-term goals. Consider what kind of work needs to be done and how each type of worker can help you reach your objectives.
By understanding the pros and cons of freelancers, contractors, and full-time employees, you can make better choices that support your business’s growth. Whether you need flexibility, expertise, or stability, planning ahead and adjusting as your business grows will help you build a strong and efficient team. No matter what type of worker you hire, managing your finances well is key to running a successful business.
Sign up for Maya Business to implement an efficient payroll management system, whether you hire freelancers, contractors, or full-time employees. Setting up a Maya Business account lets you open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. Furthermore, you’ll be able to send money to your partners and suppliers for free via InstaPay and PESONet, letting you save more.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, allowing you to have another funding source to further develop your business. Just use Maya as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.
Sign up for Maya Business today to enjoy the benefits of Maya Business solutions.
