Matthew Gates http://notetoservices.com 3m 812 #employeelabor
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Is it worth it to hire cheap employees?
The short answer is: You get what you pay for. Now that we got the short answer out of the way, the longer answer is that it depends on what your company needs what your company expectations are, and the quality of work you want for your company. There is always someone who is willing to do the work for a cheaper price and you will definitely find them, especially in areas where the economy is booming, the labor is cheaper, and the unemployment rates are high. The Philippines and India are two common places where there is an English-speaking population who can do the work for more than half the price of what an American worker will do it for.
If you navigate to Fiverr.com, Freelancer.com, or Elance.com, you will find an abundance of people from all over the world where $3.92 to $10 or $20 will go some distance for the person on the other side who might spend an hour or two doing the work, get it done the way you want, and both parties are happy. Most people on these websites do aim to please and are pretty content with the work they receive and they do not mind doing the work. Some are professional contractors who are multi-tasking and receiving dozens of orders and have learned to make it their full time job.
Hiring a freelancer might be a great idea if you are looking to keep your production costs low, you are starting up your business and just trying to get it going, or if you really have no need for a full-time person other than yourself. The other benefit of hiring a contract worker or a one-time worker is that what one person cannot do, another will most likely be able to do. The talent pool is endless and rather than relying on one person to learn or paying someone to go through training, you can just find what you need and hire short-term or long-term.
If you wish to hire a more longer term staff that comes into your place of business or telecommutes from home, the choice is just as good, especially if you have one or two employees who have an excellent skill set and talents. For example, one person might be great at marketing, advertising, and social media, while another person may be good at programming, web design, program operations, and product development – leaving you to be the boss of the company and lead the company in the direction you want it to be.
If you do hire a full time staff, you will have to pay them accordingly and they will be more expensive. They will also be more loyal and are more likely to care about the goals and direction of your company more so than a contractor or freelancer. Hiring full time employees will help you to be more successful in making your business more profitable, as full-time employees will be able to learn the business and may even be able to help you run it.
While a contractor or freelancer may care while you are paying them, they are not bound to remain loyal to your company. You do have a better chance with part-time or full-time employees, as they may be more in need of employment.
Unfortunately, the United States is not a cheap place to live and the cost of living is pretty high complete with taxes, rent, and other bills. If you hire staff full-time, you cannot get away with paying people $5 an hour. You may be able to get away with $10 an hour for some time, but it is only a matter of time before you also need to give those employees incentive to continue working for you – whether it be in the form of vacation time, PTO, bonuses, or a raise.
You must realize that people want to get paid what they are worth. In other countries, you may be able to get away with paying less, but on your homeland, you must pay the employees you hire a living wage that is acceptable and comfortable.
Depending on your needs, hiring cheap employees could work out for you based on what you really want and the direction of your business, especially for contract work or short-term tasks. Hiring more permanent employees at a higher pay rate will establish more loyalty and trust within your company and may lead to long lasting professional relationships within your company.
Whatever you choose to do, just remember that whether you are hiring a freelancer, a contractor, or a part-time or full-time employee, you are paying them for their time and the professional services. Treat anyone you hire with great respect and pay them fairly and they will prove to be a great asset to your company.