Which is Right for Your Business: Contractors or Full-Time Employees?
Posted October 5th, 2017
When you’re looking to bring on a new team member, you are often faced with two choices: hire a full-time, permanent employee or select a contractor. Each approach has its own benefits and drawbacks, so knowing which option is right for you isn’t always intuitive. To help you go down the right path, here are some tips for deciding whether a contractor or full-time worker is the best choice.
Consider the Workload
The biggest determining factor when deciding whether to add a permanent member to your team or hire for a short-term position is the workload. Typically, if you only need assistance with a particular project, and don’t foresee needing additional support after its completion, going with a contractor can be a smart move. This allows you to have a knowledgeable professional available, with a targeted set of skills, for the duration of the project and then release them when it is finished.
However, if you anticipate needing the person to perform duties outside of a single project, and their skill set is beneficial to the company over the long-term, then a full-time employee is the wiser choice. This allows you to secure a professional for a potentially extended period, keeping their skills readily available.
Review Your Budget
At times, you need extra hands on deck but don’t have a budget that supports a permanent employee. In these cases, hiring a contractor gives you access to their knowledge base while providing you with the necessary flexibility to make an adjustment should your budget require one.
But, if you do have the budget to support a full-time employee, that doesn’t mean you need to go that route if the workload doesn’t require it. However, it does leave you with the option to do so should the amount of work available make it a smart long-term decision.
Recruitment Time
Typically, it is easier to get a contractor into a position than a full-time employee. Many companies are open to less screening when it comes to short-term workers, especially if their role is highly defined. Plus, you often have the flexibility to seek out a new contractor quickly if the first one doesn’t end up working out.
When you are hiring for a permanent position, it generally behooves you to take some extra time to make sure you get it right the first time. Failing to select the right candidate can be costly for a full-time job, so completing your due diligence is critical.
However, there is nothing to say that you can’t screen potential full-time employees by having them start in contracted roles. The approach, called temp-to-hire, allows you to evaluate the professional in the working environment and extend a permanent offer if it is a good fit. Otherwise, you can release them from the contract and seek out a new potential employee with relative ease.
If you are interested in hiring a contractor or full-time employee, or filling a position using the temp-to-hire approach, the professionals at Bayside Solutions can assist you with all of your hiring needs. Contact us today to see how our flexible options can work for you.
