The decision to employ people directly should not be taken lightly. There are both advantages and disadvantages to this method and these need to be fully considered before any hiring decisions are finalised.
The limitations of employing people include:
- Money costs - the recruitment process costs money and time
- Administrative costs - including tax-related matters
- Hiring inexperienced candidates
- Great deal of paperwork involved - including keeping track of staff, holiday entitlements, sick leaving amongst others
The limitations of advisors and consultants include:
- Lack of adaptability of proposal to suit the business
- Failure to implement favourable long-term change
- Lack of original ideas and focus
- Lack of enthusiasm for the business
- It can be expensive
Activity 27 - If your business is seasonal, which types of employees should you seek?
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