Contract Employees vs Full-time Workers

But, I got paid a lot higher which gave us independence in managing our money without any overtime and weekend work. If you’re unsatisfied in your current full-time role, it may be helpful to weigh the pros and cons of leaving your current role for a contract position. However, many employers create contract-to-hire career paths for their contractors to gain their loyalty and ensure more committed work. Depending on your goals, this may be beneficial for you as well – if you’re looking to become a full-time worker after a specific period of time. The type of employment where you’re not on the company’s payroll but rather work on a contract basis (such as short-term projects that clients assign to you from time to time) is called contract work. A contractor is an independent worker who has autonomy and flexibility but does not receive benefits such as health insurance and paid time off. While working as a contractor, you have the freedom to choose your own projects and work hours.

  • As a contractor, instead of receiving a steady income, you will be compensated based on a rate you’ve previously negotiated for a particular project or based on the number of hours you sent on the job.
  • A contractor is not under an employer’s control regarding the manner, means, and results of work performed.
  • When you need someone to help with basic administrative or bookkeeping tasks for just a few hours per week.
  • If you need help with your company’s contract vs. fulltime employees, you can post your legal need on UpCounsel’s marketplace.

She has also published articles on business formation, business software, public relations and human resources. When they already know the target market and could have important contacts they can leverage for business growth.


That’s why many companies prefer hiring contractors to recruiting employees – they cost less. Another disadvantage of IT contract work is a lack of connection with teammates, colleagues, and the company at large. As short-term employees, it’s common for contractors to feel separated from the rest of the organization and it can be hard to get to know coworkers if you’re only planning to be with the company a short time. While regular employees build camaraderie and networks of support, contract workers can be left feeling alone and disconnected. Harman noted that employees are hired to perform specific work at the employer’s direction. On the other hand, independent contractors are typically given a job or project to work on without the company controlling when and how they do it, he said. The high turnover rate that often comes with hiring contract workers can be disruptive and expensive for your business.

contract vs full time

The primary distinction between contract employees and full-time workers revolves around differences in the employer-employee relationship and tax liabilities. In a general definition, an employer will hire part-time employees to work fewer hours than a full-time worker. Part-time employees are usually seen in retail, customer contract vs full time service and food service jobs. For many companies, part-time work is considered 30 hours or less per week; however, the Fair Labor Standards Act does not specify the exact hours of full- and part-time employment. Whether or not a contract job offers benefits depends on the company or staffing agency you are working for.

How payment works

Working several contract positions will help you build a larger professional network. The bottom line is that deciding if working as an independent contractor is the best fit for you depends on your priorities and the trade-offs you’re willing to make. The concept of leaving a full-time position for contract work might seem foolish and irresponsible.

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Posted: Tue, 03 Jan 2023 18:41:39 GMT [source]