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If you need to solve a short-term problem, a contractor is often the right way to go. If you absolutely don’t have the money to hire a full-time employee, contracting out work can give you the short-term benefits mentioned above and get you in a better position to plan the future of your company. But the contract position vs. full-time employee debate has transcended these questions.

Contract jobs are created to take care of specific tasks or last for a certain amount of time. They are a great way to test out a position before making it a full-time permanent one and they are also a good way to get consultants or specialists in to help with a project. Imagine taking contract vs full time salary on an animator to make some content for a particular product. Once they have done their job and you no longer need any animation work done, payment is rendered and you part ways. Contracts may also be made renewable and talent retained that way on a de facto permanent basis.

Contract vs. Full-Time Employees: How to Make the Right Decision

During the most recent shutdown, inspections of chemical factories, power plants and water treatment plants ground to a halt as the Environmental Protection Agency furloughed thousands of workers. The Food and Drug Administration also paused routine food safety inspections of seafood, fruits and vegetables, putting extra pressure on restaurants and grocers. A government shutdown amounts to a suspension of many government operations until Congress acts to restore funding. A professional salary negotiator walks through every piece of a real-world salary negotiation email sample to show you how to negotiate the best compensation possible.

In fact, you may not even personally have the skills to train an employee in the tasks required for your business. For this reason, independent contractors tend to be the best choice if you need specific expertise for a project in a short period of time. Contract employees are also called freelancers, gig workers or consultants. Contract employees do their work apart from the organization or company for which they provide their services. Often, contractors work for multiple organizations in order to make a living.

Contract To Hire vs. Full Time What Are The Benefits?

Experts anticipate the U.S. workforce will be 40% contract workers and freelancers by 2020. If you only hire one type of employee, you could be missing out on some valuable opportunities. Part-time employees may have the opportunity for flexible hours with days off throughout the week or a set schedule if they’re doing shift work. Part-time employees are never salaried employees, meaning they are paid only by the hours they work. They can work extra hours by picking up shifts or doing additional work during busy times of the year. Part-time jobs give employees the chance to focus on other outside tasks, which is why many students take part-time jobs.

• Designed for business owners, CO— is a site that connects like minds and delivers actionable insights for next-level growth.
• Long-term employees often feel they have a personal stake in the success of the company and become great word-of-mouth marketing tools.
• Contract employees may ask for more money for their services because they have to provide their own benefits and handle their own taxes.
• If you hire temporary employees who prove themselves invaluable assets, bring them on board as full-time or contract-to-hire workers.
• As a contractor, you can also choose to work for multiple clients simultaneously – some of which may even be direct competitors.

“Good work” no longer just extends to what you provide for your employees. It includes how your hiring affects the economy, future job prospects, and your company’s long-term health. Contract-to-hire is a type of job that brings in a contractor for a short-term project that can—if both parties agree—turn into a full-time job at the end of the project. Bringing on contractors reduces the risk a business takes on hiring full-time. There’s no need to worry about whether the employee will be a good fit or will consume company resources. As your business grows, offer more and more hours to your favorite freelancers.