A consultant is an individual who possesses special knowledge or skills and provides that expertise to a client for a fee. Consultants help all sorts of businesses find and implement solutions to a wide variety of problems, including those related to business startup, marketing, manufacturing, strategy, organization structure, environmental compliance, health and safety, technology, and communications.

It is estimated that 65% of all businesses use independent contractors & consultants, and according to the Bureau of Labor Statistics, over 8 million such people are in the workforce.There are many good reasons to consider hiring a consultant who is an independent contractor rather than just another employee.

An independent consultant sees with a professional's eye and experience what needs to be done, and just does it. They do not attend your staff meetings, do not take calls, are not there for the birthdays, do not produce in-house reports or spreadsheet projections, do not converse socially with fellow employees, and because you are not their sole source of revenue, will tell you the truth.

The Top Ten Reasons to Hire a Consultant

1. The Bottom Line

Hiring an employee instead a consultant adds at least 20% to 33%, and often more, to total payroll costs. In addition to employee salary and other compensation, there are significant "hidden costs" such as payroll taxes, unemployment & workers compensation insurance, and employee benefits like health & dental insurance, paid vacations, sick leave, retirement benefits, and life or disability insurance.

2. Hourly Rate is More Economical

An employer can actually save money by hiring a consultant, even a consultant paid more per hour than an employee. Not only up to 33% of hidden costs on top of employee salaries are avoided but a consultant can often do the job faster and more effectively than an employee because a consultant has specific technical expertise and the right connections.

Speed, accuracy and effectiveness require less of your hourly cost in supervision, correction and loss of productivity, and your hourly rate is most likely the highest.

3. Avoid Headaches and Potential Lawsuits.

Hiring consultants reduces exposure to potential lawsuits, such as from those acusing your company of gender discrimination, age discrimination, or wrongful termination.

A wrong hire can lead to lengthy and costly HR requirements and law compliance, actually preventing you from undoing a "bad" hire.

4. Maintain Flexibility Without Long Term Exposure.

You hire a consultant to handle a specific project, gaining specialized expertise for a short time period without the potential severance costs and lawsuits that can stem from terminating an employee.

5. Save Time and Expense Involved in Training Employees.

You won't encounter resistance and potential sabotage when expecting employees to operate out of their comfort zone or level of expertise. Consultants do what you hire them to do. They don't resist change.

6. Expand and Contract Workforce as needed.

Need one extra helping hand, two, three? Bring on as many or as few as you need without the HR hassle that comes with hiring a full time employee. When the work is done the consultants are gone. No mess, no fuss.

7. Access the Latest in Resources and Equipment Without Owning and Paying for it.

Consultants typically have their own resources, including transportation, and the latest in computers, laptops, software and mobile phones. You avoid costly expenditures for owning, leasing and long term contracts, or worse, having employees trying to function without proper communications and other equipment needed for the task.

And because consultants are well connected throughout a variety of industries you also get the benefit of their network of business contacts, associates, and other experts. Now there is an invaluable resource!

8. Maximize Efficiency.

Your consultant is producing results not tied up in lengthy staff meetings, answering phone calls from customers, producing monthly reports for other departments, or other redundant & tedious functions.

9. Stabilize Insurance Costs.

You are not paying for health or other employee and dependent insurance, nor are you paying for unemployment or tying up administrative and accounting personnel tracking COBRA benefits for 18 months.

10. Retain and Attract Employees.

You will have greater retention and attraction of top talent if you are a company that is known for hiring resources as needed rather than overburdening already potentially stressed staff.

Hire an Consutant for your next project and you just may save time and money.