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Employee vs. Independent Contractor

Employee vs. Independent Contractor

Each business has different requirements when it comes to determining whether employees or contractors will fit in best with the structure. However understanding which will type of staff will suit your business can be determined by how many people currently work there, along with how long your business has been around for, and the expenses you are able to commit to the employee.


  • Contractors are great to complete one-off jobs or to focus on achieving a mutual goal assigned by the business.
  • One of the benefits of contractors is that they are usually specialists in their areas.
  • You will most likely save money hiring a contractor because you only pay one off and don’t have to commit to a salary.
  • They will not promote your brand, as their work is a separate part of your business.
  • Payment to contractors usually has more leeway and is less regular as they only work when you require them to.


  • As they are fixed, this helps with reliability and having staff with a clear understanding of how you can work together to build your business.
  • Employees usually feel proud and ingrained into the business, therefore this helps build the brand and overall staff ethos.
  • Wages need to be paid on time, along with extra staff benefits such as annual and sick leave, therefore the employer can feel the pressure from these fixed wages, especially if they are still in the early stages of launching.

Thanks to the MPAQ Workplace Relations team, they have created this table outlining the difference between working with an employee vs independent contractor.


Why not call Bizmatrix now for a chat about how we can cross train your employees ? Enabling them to become more than a one-trick pony and talented in a number of areas across your business, overall saving you money without the need to hire more people. Ph. 1300 588 749

Which do you prefer? Employees or contractors? Tell us in the comments below.


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