There is a growing trend in today’s workplace of hiring contractors rather than employees to perform necessary services. This trend is a result of a number of factors including greater flexibility, reduced overall costs and often a greater specialization that contractors bring to a project.
In today’s market having the ability to quickly increase or downsize a workforce with contractors is cost effective and an efficient way to manage labour. An employee has certain rights on termination that generally are not available to contractors. Additionally, an employer has added costs associated with remissions and withholding for income tax, workers’ compensation and employment insurance. As well, employees have certain entitlements under the employment standards legislation, such as overtime pay, stat holiday pay, paid vacations, etc., which are not available to contractors.
Employee Versus Contract Worker Cost Analysis
(Based on EE earning $50/hr working 10hr shift and Contractor earning a day rate)
|Vacation Pay (4%)||22|
Other costs to consider: RRSP contributions, Stat Pay, Bonuses, Severance, Payroll Administration, HR recruiting, Cellphones, Computers, Vehicles, Fuel, PPE, etc…
At Highmark, we understand that every client has different needs and the solution needs to be tailored to meet specific requirement. In today’s ever changing economy, we can rapidly assist you in expanding your team in order to meet your business demands. Whether the role you seek to fill is project based, long term or temporary or a combination of both, we can deliver top quality solutions.
Our HSE Personnel staffing solutions deliver qualified candidates to ensure your organization has the flexibility it needs. From business cycle fluctuations, to the execution of new or short term projects, you need talented candidates with industry knowledge and expertise who can add value to your company and its overall objective.