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Marketing Directors are always looking for ways to keep marketing costs down without sacrificing quality and that is especially true when it comes to hiring personnel. For many businesses, personnel costs are their highest expense and finding new ways to reduce those financial burdens can help make those companies more profitable. Utilizing independent contractors or marketing consultants to supplement your marketing team is an option that businesses should explore for several very good reasons.
One of the characteristics of an independent contractor arrangement is that the company does not provide any equipment to get the job done. It is up to the contractor or consultant to make sure that they have the best tools and a place to work that will help them to meet your marketing goals. All you do is pay an hourly or proj
ect rate and they will get your work back to you by your deadline. The savings in office equipment and office space alone will help to justify the use of independent contractors and consultants.
Marketing departments hire employees that often work primarily on projects. If there are weeks in between each project, then the company is wasting money paying those employees. When you hire independent marketing contractors to get the work done, you only pay for each specific marketing project and you can save money on recurring costs for employees that would otherwise be waiting around for their next assignment.
Part of the definition of an independent contractor is someone who does not get paid benefits from the company. That means that you do not have to worry about health insurance, paid vacations, or severance packages when you utilize independent contractors for your marketing projects.
An employer is responsible for providing its marketing employees with the training they need to do their jobs properly. With independent contractors and marketing consultants, the company creates project guidelines and it is up to the contractors to have invested in their own training to be able to do the job. There is a measure of control the company gives up when it comes to not being able to train independent contractors, but the guidelines and resources that can be offered to independent contractors help make sure that the marketing project gets done properly.
When it comes to direct-hire employees, companies are forced to pay for expenses such as unemployment insurance, Medicare, worker’s compensation insurance, and the administrative costs associated with withholding federal and state income taxes. With an independent marketing contractor arrangement, the company is not responsible for any payroll withholdings and can save a lot of money on payroll costs.
A Word About Using Independent Contractors
A successful marketing leader is one that understands when it needs to hire good employees, and when it can benefit from supplementing their existing marketing team by utilizing independent contractors or outsourced marketing consultants.
When marketing operations effectively utilizes independent contractors, you can realize a wide range of financial benefits. If your marketing budget is strapped because of your personnel costs, then evaluate your staffing needs and see if using independent contractors or consultants will help you secure your return on your marketing investment (ROMI).
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