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Internal Remote Teams vs. Third-Party Contractors for Long-Term Projects: Pros and Cons

Mar 20, 2024 | Business, Culture, Remote Work

As your business launches a new long-term project, you may need to carefully consider hiring third-party contractors or bringing in internal remote teams. Your hiring decisions for that project will shape the project and the long-term future of your company. If you’ve previously chosen to hire third-party contractors to fill your open job roles, carefully consider the benefits of hiring internal remote teams that can fill your company’s long-term needs.

Hiring Internal Remote Teams: The Benefits

An internal remote team offers several benefits to your company. Hiring remotely helps you expand your reach and access a larger talent pool than you might have otherwise been able to reach. This can improve your ability to hire for specialized roles and positions within your company.

1. Dictate Work Responsibilities Yourself

When you hire an external contractor or freelancer to take on your job tasks, you may quickly find that it creates unexpected limitations as you assign job roles and requirements. External contractors often have much more control over when they work and even what tasks they are willing to take on. As a result, it may prove more difficult to host meetings or shift task responsibilities than when you hire an internal team to take on the job.

2. Maintain Consistency

When you have long-term projects for your company, you want to maintain consistency as much as possible. This includes both internal and external projects. When you hire remote employees to take on those tasks internally, they will likely stay with your company over time. Employees often have a stronger degree of loyalty to the company than contractors. Over time, that means they’ll have a deeper understanding of the project and the ability to deliver the high standard you’re looking for.

Working with internal remote teams - A male employee speaking with his colleagues through his laptop.

3. Allow Employees to Carry Multiple Roles

When you hire freelancers or contractors, their contracts will often specify the job responsibilities they will take on. There may be relatively little room for negotiation in those projects since contractors are often juggling multiple jobs at the same time or may have limited availability. Employees are often more adaptable, and as a result, you’ll be less likely to have to juggle multiple contractors for your projects.

4. Maintain Company Culture

Employees are often highly engaged in your company culture and more likely to help you maintain it over time. They are onboarded into your company and understand your unique needs and requirements. As a result, hiring internal remote teams will allow you to maintain that vital company culture.

5. Reach a Wide Talent Pool

Hiring remotely can substantially improve your ability to reach a broad talent pool. When you hire remotely, you can reach out to experts located anywhere. However, when you restrict yourself to a specific geographic area, you may find it much more difficult to find the specific skills you need to make the most of your project.

A businessman having a virtual meeting with his colleagues.

The Downsides to Hiring Internal Remote Teams

While having internal remote teams comes with several benefits, there are some potential downsides that you must take into account.

1. Hiring Internally May Increase Costs

In many cases, hiring an internal team—even a remote team—will increase your costs as an employer. While contractors may charge more upfront, you’ll be responsible for paying for an internal team regardless of whether they are working. Furthermore, you may have to consider the cost of equipment, training, and benefits, all of which will fall on you.

2. Internal Remote Employees Require Benefits

Benefits increase the cost of hiring an internal employee and can mean more logistical work on your side. For example, you may have to be prepared to provide vacation time for your employees, which can mean that you need more employees to fill those roles to maintain consistency and keep moving your project forward.

3. You May Need to Provide More Training

When you hire external contractors to take on your large projects and requirements, the contracting company will often take care of their training. You may need to provide specific onboarding modules that will acclimate those employees to your company and those requirements. However, the contracting company will make sure that employees are provided with the latest training in the field and that they remain up-to-date on compliance and other essential regulations. On the other hand, when you hire internal remote teams, you will need to manage those training requirements yourself.

4. You’ll Spend More Time on Recruitment and Onboarding

When you hire internally, you’ll have to manage all the tasks that go along with it, including recruitment and onboarding. Like other aspects of hiring employees internally, that can increase the cost of staffing your company. It may also mean that you need more time to fill open positions. This can make your large projects grind to a halt or slow considerably while you manage the hiring process. The time spent on recruitment may also mean that you have employees who cannot take on other essential tasks.

Hiring internal remote teams - A businessman using his computer while having a virtual meeting with his employees.

Using an Employer of Record Can Improve Your Hiring Efforts

If you’re looking for a way to mitigate the difficulties associated with hiring internal remote teams, utilizing an employer of record can go a long way toward reducing the downsides and allowing you to make the most of your new team.

1. Keep Employees No Matter Where They Go

When you have great employees, you want to keep them on the team. With an employer of record who helps maintain your remote team environment, you can improve your ability to keep employees even when they physically relocate.

2. Save Time and Money

With an employer of record, you can save a great deal of both time and money as you staff your internal remote teams, keep up with remote work responsibilities, and even manage training. An employer of record can help with basic HR tasks to ensure that your team keeps moving smoothly.

Are you ready to experience the benefits of a remote team for your company? Reach out today to learn more about how utilizing an employer of record can help you achieve your goals.

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