Forum Discussion
Subcontractors vs Direct Labor
Would you consider hiring subcontractors instead of hiring direct labor when talent is hard to find in your local market? My business has had a lot of success partnering with other companies to compl...
I’m in Calgary, Alberta and out of the 25 crews doing snow removal last year, 80% were subcontractors. Employees did some of the more delicate commercial jobs, but the main benefit of employees vs subs is I for the “no questions asked” aspect. With subs it’s up to them to take the route or the site, but I can take chances and experiment with employees.
The benefit of Subs is that most people who are responsible and reliable will end up opening their own company anyway. I take it a step further with subs who have suck for a few years and I will “trade” customers with them so they can focus more on my customers while other subs do their customers and everyone saves on travel time.
That’s a really smart way to balance the strengths of both subs and employees! Have you found that partnering with other businesses has been more effective than hiring direct labor, especially as your workload grows? Would love to hear how that’s impacted your business!
