What To Know About Contract Versus Full-Time Work

Contractors save companies money and provide access to in-demand skills without adding to a company’s risk. In an age when companies need highly educated and highly skilled technical workers, the combination of these factors can prove very persuading. Companies change quickly—especially contract vs full time salary when they’re first finding their place in the market—and they may need a completely different skill set in a years’ time. The best way to find out what types of contracting jobs are in demand is to search on job boards or reach out to an experienced recruiter.

If it’s a W-2 contract position, then you can basically compare the full-time and contractor positions directly because the employer is paying the same costs as they would if you worked for them full-time. 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. In December 2017, NPR and Marist found that 20% of all American workers are contract workers or independent contractors. But the contract position vs. full-time employee debate has transcended these questions.

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This flexibility can be a significant advantage for those seeking work-life balance, exploring diverse projects, or managing personal commitments. An agency contractor is someone who agrees to fulfill a pre-defined project for the agency’s client in exchange for compensation. Generally, the individual is a W-2 hourly employee of the agency but is working onsite for the client. The current job market is full of various opportunities, no matter the type of employment you’re looking for. Two of the currently most popular types of employment include being hired full-time or contract work.

For this reason, your time frame and desired schedule may not necessarily be achievable when working with independent contractors. It might be necessary to either adjust your project timetable (which could cost you time and money) or hire a different contractor to complete the full scope of work on a given project. Some companies may prefer to hire part time because part-time workers may offer greater flexibility in their work arrangements, allowing businesses to adapt to labor needs as they evolve.

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Providing a contract-to-hire path to your favorite freelancers gives these contractors an added incentive to remain loyal. Simply follow the money – if you’re paying a person directly for their expertise and their work, they’re a contractor. In general, consultants only determine client needs; they don’t actually do the work. Of course, one of the less-obvious (but very important) benefits of long-term employees is a sense of family and community. They often show dedication to their employers, advocate for them in their social circles, and work for the long-term benefit of these businesses. Hiring a contract employee requires a far different pay structure than bringing someone on full-time, meaning you need to embrace a unique set of trade-offs.

As mentioned, the federal government does not clearly define part-time employment. In this respect, it’s largely up to the employer how to determine whether an employee falls under this category. Many employers use their own definition of full- and part-time employment to determine company policies around benefits and perks, such as how much paid time off (PTO) an employee is entitled to. Whether your business is looking to employ full-time employees or contract-to-hire staff members the right staffing experts can help.

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The contract-to-hire model gives you a massive hiring advantage over your competition. However, they may want the stability of a full-time (or even part-time) position with your company. Freelancers and contractors who work with your competitors can give you insights into best practices (within ethical boundaries, of course). If you make a purchase by clicking one of the links, we may earn an affiliate fee.

• Categorizing employees as “part time” or “full time” isn’t as cut-and-dry as one would think.
• Loyalty – Full time employees have a stronger connection to their organization than contractors on a short term project.
• Workers can enjoy job flexibility, diverse project experiences, and the potential for higher pay rates.
• Working with a staffing firm can reduce the hiring and onboarding processes too, ensuring that when a company needs all hands on deck, they have extra hands ready and holding the necessary tools.
• As we’ve mentioned previously, as a contractor, you can expect to get hired either for a specific project or during a specific period.
• Many remote contract workers are also able to travel and explore new places thanks to their work’s flexibility.

The last time the union went on strike was in 1991, when 550 workers stayed on the picket line around the clock for 6 years, 4 months and 10 days at the Frontier, the union said. Not one worker crossed the line, and all were brought back to their jobs and provided back pay, it said. It’s true that the general definition of a full-time worker is someone who works at least 30 hours a week or 130 hours a month for more than 120 days in a row. And many small businesses define full-time work at 30 or 35 hours a week. However, federal laws and agencies can define “full time” and “part time” differently.