Today Mike is here to talk about the differences, pros and cons of hiring employees VS. hiring contractors.

One of the biggest things that people get afraid of all of the paperwork behind hiring employees. Filling out the W2 can be a scary task, and you definitely don’t want to get in trouble with the government, however, it’s good to keep in mind that if you have a problem that requires money, and you have money, you don’t have a problem. For just a couple hundred dollars a month you can have an outside company deal with all of the paperwork, and have the security of knowing that if something gets messed up, it falls on someone else rather than you.

Another false idea that people have in the minds is that W2’s are super expensive and a huge headache, but if you’re bidding everything properly then your customers should be paying for it. Some people think that their customers won’t pay, but the reality is that the customers that you want are looking for things like workers compensation insurance, legally paid employees, FUDA and SUDA, etc. Instead of dealing with all of the headaches, it’s a lot easier to find the right customers that are willing to pay more for better services.

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Sometimes people will look at things like insurance as an afterthought, or just think of it as something that their employee has to worry about, however not having basic things like insurance figured out can be seriously detrimental to your company. While getting injured may not be super common, it can still happen, and when it does it is a lot easier and less stressful to deal with when you know everyone is in the clear.

Another false belief that people share is that the customer does not care about who is in their house/business. Many people believe that their customers only want a lower price point and that everything else doesn’t matter. And while that may be true, those types of customers are generally not only less profitable but tend to cause more headache down the line than the customers that care about their families/employees and want to make sure that they have good, insured people in their homes/businesses. Oftentimes the customers that do only want a low price point just aren’t aware of what they have to give up in order to acquire that. It is your job to explain to the customer why it’s important that they have insured, legal, employees that know what they’re doing and are trustworthy, and why it’s worth it even at a higher price point. Oftentimes these types of customers may want the cheapest price point that they can get with insurance etc.  

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If you would like to chat with Mike one on one for free all about this topic or whatever else is going on within your company, head over to GrowMyCleaningCompany.com/talk and schedule an appointment today!