When to Hire Full-Time Employees vs. Contractors

Each option has its advantages and is suited to specific situations. 

Before jumping into any hiring decisions, it is important to understand the differences between the two types of workers and what their jobs will consist of. 

The Difference Between Full-Time Employees and Contractors 

Full-time employees are hired for a permanent position at a company, generally working a set schedule of specific hours and receiving benefits like health insurance and paid time off. 

Contractors are hired for specific tasks and projects, and operate more independently, setting their own work schedules and hours. They do not receive the same benefits as full-time employees since they are not full-time members of the team. 

When to Hire Full-Time Employees 

Since full-time workers are around more than contractors and are likely more familiar with the business, you’re going to want them to take on responsibilities that are consistent and need daily attention. 

For example, if you are running a restaurant, you’re going to want to hire full-time managers who are familiar with what a typical day looks like, the kinds of customers that come in, and what the most popular meals are. 

It wouldn’t make sense to hire a contract worker when attention to business is constantly needed. 

Full-time workers are also needed when specialized skills are required to get daily tasks fulfilled, such as marketing and technical jobs like an in-house accountant or IT manager. 

When to Hire Contractors 

Contractors are useful for short-term projects that have a defined start and end date. For example, if you are running a wedding planning business, hiring a photographer for the wedding day would be considered a contractor job. 

Contract employees are also ideal for businesses with tight budgets since they are far less expensive to hire. They do not require the training or benefits that full-time employees need when they join a team. 

Contractors can be hired seasonally if your business experiences peak during certain seasons and you need some extra hands. 

For example, many retail stores become busier around Thanksgiving and Christmas, and they may hire seasonal employees to ensure they have all hands on deck. 

To summarize, you should hire full-time workers if you need long-term and consistent help, and you want employees who are a part of your core team. 

You should hire contractors for short-term projects without the commitment of a permanent hire. 

For more information about when to hire full-time workers versus contractors, contact JTS Associates today at (516) 877-5900.