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Small businesses turning to contractors

Small businesses turning to contractors
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The number of small businesses looking to hire independent contractors has risen over the past several months, as the recession prompts companies to change the way they manage their workforce.

That is according to data from SurePayroll’s Contractor Index, which found that for every 100 workers employed by small firms in July, 4.13 were contractors. In June, only 4.06 were contract workers.

SurePayroll says that July marks the 18th consecutive month in which the proportion of contractors has risen in the U.S.

Meanwhile, the company also found that the average full-time salary paid by small businesses in the U.S. has decreased, while hiring levels have risen.

According to the SurePayroll Small Business Scorecard, average salaries paid by small businesses have fallen by 5.1 percent since January 1.

The average annual paycheck received by an employee of a U.S. small business currently stands at $29,995, the company says. The last time such salaries dropped below $30,000 was in March 2006.

At the same time, small business hiring – measured by changes in the average size of a small company – has edged up by 1.7 percent, the data shows.





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Daryl James
(Visit Daryl's Website)
Daryl writes/blogs for oDesk, the marketplace for online workteams. oDesk offers the best business model for both buyers and providers with a unique approach that guarantees that an hour paid is an hour worked, while also guaranteeing that an hour worked is an hour paid.


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