Why Do Independent Contractors Cost So Much?

Posted on Wed, Dec 21, 2011

So you decided to hire an independent contractor instead of a new employee to handle certain tasks, and now you’re experiencing a bit of sticker shock. Why should you pay $80 an hour for a freelance PR consultant when you’d only pay her $35 an hour as a salaried staff member? Is she gouging you? No, she’s not. Independent contractors incur a range of small-business expenses, much like your company, so it’s unfair to compare their rates with the wages of an in-house employee.

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Tags: independent contractor, money, salary