Employees vs Contractors

[jampots]

With regard to our new business, its my job to find out the pros and cons of employing staff or having sub contractors. Apart from the obvious financial aspects El insurance, NI contribs, etc can anyone help me with some more. Im thinking we'll go with employing people but obviously need to justify my thoughts

Hi Jampots

Disadvantages of employing people are that you'll have to give them paid holiday, sick leave, can't vary the size of the workforce as the amount of work varies, and you'll have to provide them with any tools that they need to do the job.

Advantages are that you get a stable workforce who are hopefully committed, and the daily rate of pay is likely to be lower.

Depending on what sort of industry we're talking about, it may be easier/harder to find good quality staff in one category than the other.