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Three Differences Between Hiring a Contractor and a Full-Time Employee

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In the growing gig economy, business owners have greater choice between hiring contractors for specific projects and hiring full-time employees. There are many benefits and considerations to each option, though your decision can be broken into three major categories – salary, legality and timeline.

Do you need a new contract or full-time employee for your project? nTech Workforce has accumulated a wealth of experience across technical disciplines to create a staffing solution that works for your business.

Here, we’ll discuss in detail the three greatest differences between hiring contractors and full-time employees.


Contractors are highly-specialized and offer direct assistance. For legal and financial reasons, contractors are paid quite differently than full-time employees. You won’t need to handle taxes, benefits or marketing costs. You will, however, need to discuss the frequency and method of payment.

Full-time employees require providing benefits such as paid time off, medical insurance and more. Many companies pride themselves in offering these benefits, but have limits on how much they can afford to provide. Choosing to contract certain temporary positions limits your need to bear the responsibility for benefits.

Contractors come at a higher cost for a reason. Beyond having fewer benefits included than full-time hires, they can provide a wealth of information and insight for a specific project, improving the knowledge of your current employees in the long run.

Full-time employees, while paid less in the short term, are on your payroll far longer. However, these employees have more of a vested interest in your company and will become a larger part of your team’s culture over time.


A full-time employee doesn’t have the ability to set working hours, negotiate for higher immediate pay, or determine the sequence in which tasks are completed. Contractors, on the other hand, may negotiate between flat-rate or hourly payments, choose the order in which tasks are completed and have fewer precise work instructions than their full-time counterparts.

You’ll find contractors may work seasonally, choosing to follow market trends because they are more often exposed to loss than employees. Contractors invest in their own tools, rather than relying on employers to pay the bill.


Perhaps the easiest way to choose between a contractor and a full-time employee is to ask yourself this: “How long will this project take?”

If the work you need is ongoing or you see the room for a specific position to evolve over time, hiring a full-time employee makes sense. If you have a defined project that will last several weeks or months, a contractor may better fit your particular needs and expectations.

At nTech Workforce, we understand and respect your need for skilled workers. Contact our experienced team to learn more about how we can assist in your talent search.