Staffing Options

There are many options to consider when you decide to hire. Most people think of full-time employees as the norm. These employees work on a continuing and regular basis. However, the dramatic impact of changing technology and business philosophy on employment practices makes other options worth examining.

Some reasons to consider options other than full-time employees are the specific demands of your business. A local florist is likely to need additional delivery help around holidays. A construction company specializing in roofing may have needs that change with the seasons. Restaurants frequently need additional help at peak periods that occur every day.

What are some of the other options?

Part-time employees. Even if you could use the help of a full-time employee, consider the advantages of hiring two part-timers. If one part-time employee is unavailable, you have a second, trained person who may be able to fill in. Similarly, you can schedule overlapping work hours to be more fully staffed at peak times.
Leased employees. You can avoid many of the administrative issues by using leased employees, who work for a third-party leasing agency. It's important to find a good leasing company that works with the types of employees you require, or a professional employment organization (PEO). Many staffing agencies have specialized in providing certain types of employees, such as accounting and bookkeeping, technology support, and clerical help. This approach can also help you find full-time employees: it is not uncommon for employers to hire leased employees away from the leasing agency.
It's a good idea to review the agreement with the employee leasing agency to ensure that there aren't any penalties, or expensive buy-out clauses, if you'd consider hiring a leased employee.
Temporary employees. Many businesses use temporary employees on special projects or to cover for a full-time employee who is absent for an extended period. As is the case with employee leasing, finding a good temporary agency in advance of the need for temporary help is a good idea. The chance of finding temporary employees with the skills you need are better if you have a relationship with a reputable agency.

Finally, consider whether your needs can best be satisfied by an independent contractor, who is technically not an employee. Independent contractors work under contract and are generally employed to perform a specific task or project. If you need someone with a specific skill set, but only for a limited time, this can be a viable option. It may have the added advantage of avoiding payroll taxes and recordkeeping relating to the employment relationship.

Warning

The classification of workers as either independent contractors or employees carries substantial economic consequences, and a misclassification can be very costly. The IRS employs a 20-factor test to determine how a worker should be classified, and employers should carefully review the issue before committing to a course of action. The penalties for treating employees as independent contractors can be very costly.
However, if you determine that an independent contractor is the right person for the job, remember that your relationship will be governed by the terms of the contract between you. Here's a sample independent contractor agreement that addresses many of the issues you should consider.