Wednesday, May 25, 2011

Contract Labor

As I have been predicting things are getting busy again. The big corporate engineering machines are hiring, architects are calling, boundary surveys are up and people are spending money.

I have been giving this topic a lot of thought and have come to a decision.

As the need for employees rises I am going to engage contract labor when possible as opposed to hiring out right.

The main reason for this is liability and cost.

As a business man I constantly thinking of cost and the bottom line.

The recent health care disaster has also greatly influenced this decision. If I keep people as contract labor I can avoid being forced to provide health care. I am an employer that believes in providing benefits, however the rising cost of things has made so I am unable to provide for them and still turn a profit.

Office employees will be 1099 employees and I will be unable to tell them that they can only work for me. This is a good thing because it gives them freedom to make more money, gives them a sense of independence and allows me to hire them on a project basis with pay terms and I won't have to worry about keeping them busy when things slow down.

Field guys are different. I currently use a couple of surveyors that have their own companies and insurance. Aside from professionals, if I need to hire field guys they will be on payroll because of the workers comp factor. I have had a few guys hurt themselves (myself included) while out working and these guys will be provided access to insurance, trucks etc.

The cost of things has made it tough for the surveyor. Prices rise and most refuse to raise their rates because they are afraid that they will lose their client and they are probably right due to the bottom feeders that have made it impossible for us to actually bill what we are worth.

Contract labor is going to be the key to a lot of small business people's survival. It's keeps the relationship strictly business and keeps the ill feelings out of it if the work runs out and lowers the employer liability.

A good term contract written by an attorney needs to be implemented to keep everyone honest.  If anyone wants one I have a contract written by one of my attorneys that protects the employer to the utmost. Just let me know and I'll send you a copy.

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