Simply put, a company can not hold an employee liable for acts taken in the scope of their responsibilities. But with the right agreement in place, they can do so with a contractor.
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Each option comes with its obvious pros and cons. I believe the decision of which route to pursue starts with what the person is asked to accomplish and what the environment looks like they will operate in.
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What needs to be different when you interview a candidate for a fractional executive role, like a Fractional VP of Sales or Fractional CRO? They are hired for a specific task, period of time, or interim role. Interview for the skills required to complete those shorter-term goals; everything else is gravy.
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In a recent conversation with a founder, she shared that it was important to her that certain positions like her VP of Sales be W2's employees, given the confidential business info they would know and have access to. Are W2 employees better at keeping proprietary business information confidential than 1099 contractors?
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Half of those hired in from the outside turn out to be unsuccessful. That is a staggering statistic, and from a sales leadership perspective completely in line with other stats frequently quoted: a 2.5-year average tenure of a sales leader and only 1.5 years for the first VP of Sales a company hires.
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The terminology used to describe this type of engagement is sometimes confusing: contractor, interim, fractional, 1099, gig, on-demand, project-based, hired gun, virtual, third-party, temporary.
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