FINAL WORD
The result is a true monthly cost of approximately R60 465 . This is about 21 % more than the stated R50 000 monthly salary , reinforcing the importance of budgeting at least 20 % more than the base salary for a permanent hire .
The way we measure the cost of engaging the services of an independent contractor is quite different to the cost equation when hiring permanent employees .
Firstly , independent contractors are typically sole proprietors who hire out their skills for an hourly rate or project fee . The recruitment fees for agencies in this instance range from 10 %– 30 % of the contractor ’ s pay rate .
However , it is not just about costs . Independent contractors offer many other advantages too . With independent talent , the burden of unemployment insurance and other employee-related costs falls on them , not your organisation . The global trend of hiring contractors for specific skills helps companies remain agile .
And in a tough economy , hiring independent contractors allows for the quick scaling of resources without the restrictions of retrenchments or notice periods . This flexibility is invaluable , especially during high growth phases with fluctuating workloads .
An often-overlooked consideration is the skill and expertise possessed by independent professionals , honed through years of experience . You are essentially
The global trend of hiring contractors for specific skills helps companies remain agile .
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