Reasons to hire an employee

Greater control

Hiring an employee gives you more control than you have with an independent contractor. With an employee, you not only specify the results you want accomplished, you can also determine when, where, and how you want it done. When you use a contractor, these decisions are left up to the individual you hire. A contractor can even hire someone else to do some or all of the work on his or her behalf.

Furthermore, intellectual property that employees create belongs to your business, although it's a good idea to remind them of this and perhaps include it in your employee agreement or handbook. When contractors create intellectual property it belongs to them, unless your contract with them specifies otherwise.

Greater consistency and commitment

Typically, employees work for only one employer, so their time is not divided between many obligations, as can be the case with a contractor. Because you hire employees for the long term, they have time to get to know your business and your customers very well. Committed, dependable employees can often be relied upon to manage the business during the owner's absence. They can make repeat customers feel more at home and comfortable with your business, which can be an important aspect of customer service.