Subcontractors vs Employees: Which One is Best For Bookkeeping Businesses?

Should you hire an employee or a subcontractor for your bookkeeping business? Co-hosts Hannah Robinson and Melissa Honan break down the difference between hiring an employee and a subcontractor, their pros and cons, and when it makes sense to go with either. Melissa starts the conversation by describing the difference between hiring employees and hiring subcontractors. Melissa explains why it's important that subcontractors and employees be held to the same performance standard. For Melissa, performing a task audit is the first step to understanding whether you need to hire an employee or a subcontractor. Hannah and Melissa go through the difference in workload for sub-contractors and employees. Melissa breaks down the steps to making a successful first hire in your small business. Melissa believes it's more beneficial for your first hire to be a subcontractor than an employee while you figure out what you want. Hiring and onboarding is expensive. To help increase the odds of a successful hire, Melissa believes all new team members should go through a 90-day probationary period. According to Hannah, the most effective way to reduce employee turnover is to make it clear from the beginning that you're investing in a long-term relationship. Melissa adds that the goal of every successful hire is to be clear on the level of commitment you expect from the new team member. Melissa highlights that employees don't like too much freedom - as a business owner, you must set clear expectations, rules, and processes. Hannah describes how having a well-defined business structure leads to increased productivity. While there's no way to guarantee an employee stays with you long term, Melissa believes maintaining a positive work environment will increase their odds of staying. Hannah and Melissa share the pain of investing in an employee only for them to move on.     Mentioned in this episode: [email protected]