The ratio of contract vs. full time workers is on the increase in the US and worldwide.


Experts project that by 2020, contract workers and freelancers will make up 40 percent of the workforce in the United States of America. Employers will lose valuable opportunities if they recruit one type of employee.

Are Contract Jobs Gaining Popularity?

While most people are familiar with full-time and temporary employment, we are beginning to see an increasing number of contract positions. More employers are embracing the concept of contract jobs because it's cheaper and less risky for them. Contract jobs allow employers to try workers for a specific period, rather than commit resources to train and pay new employees.

How Long Does a Contract Job Last?

While contract jobs can result in full-time employment, most are positions with specific durations. Before choosing between a contract or full-time position, the vital point is to know all the details of the job.

What Do Employers Need to Consider when Hiring Contract or Full-Time Workers?

Employers should consider the following before employing full-time or contract staff:

  1. If you have a policy of employing only contractors, you need to ask yourself what value a full-time staff member will add to your company?
  2. Will your business move closer to its set objectives by hiring a full-time employee?
  3. If you run your business with only full-time employees, try to identify the value a freelancer can bring into your business. Can you hire contractors during peak periods to support your full-time employees?

What are the Major Differences Between a Full-time Job and a Contract Position?

A contract position and full-time job have some major differences, including:

Job Security

Some years back, people with full-time jobs believed they had secure employment, but all parties understand that contract job will end at the completion of the contract. The reality today is that no job is secure,whether it's a full-time or contract employment, so it doesn't matter whether you choose a contract job or full-time employment .


In most cases, contract employees earn more. While the earnings may be higher, you also have to consider factors such as benefits, income tax, and supplies. If you have a medical condition or require specialized equipment which you don't already have, financing your health insurance can severely hurt your bottom line. You have to remember that salary is not the only benefit in a full-time job.

Flexible Schedule

The flexibility which freelance work offers is one of the reasons why most people love contract jobs. Rather than staying at the office even when you are not productive, a freelance position allows you to work according to your responsibilities and get paid for the same.

Location of Work

Contract jobs often require employees to work at a designated location, but an increasing number of freelancers now work from home. As a contractor, you are self-employed, and this gives you more control over your work location

Training and Promotion

Most employers who hire full-time workers are responsible for staff training. From the initial training to refresher courses, companies invest heavily in their full-time employees to motivate them and sharpen their skills. However, most freelancers are responsible for their own training. The good news is that they can choose the training that will enhance their marketability and earning power.

Advantages of Hiring Contract Workers

Employers might consider these reasons to hire contractors:

  1. With contract workers, employers only hire when the need arises, and contractors also use the opportunity to earn higher pay.
  2. Employing contractors involves using a payment plan different from that of a full-time employee and offers multiple tradeoffs.
  3. Freelancers can offer valuable industry insights which full-time employees might not be aware of, thus giving you a competitive edge.
  4. Contractors often have more diverse working experience compared to full-timers.

Disadvantages of Hiring Contract Workers

The following might be reasons to avoid hiring contractors:

  1. Contract employees command higher pay compared to full-time workers because they handle their own taxes, insurance, and marketing.
  2. It's difficult to make them loyal to you due to the short period they spend with you.
  3. Competitors can lure your contract employees away with higher pay.

Advantages of Hiring Full-time workers

Here are some of the reasons to hire full-time employees

  1. Full-time employees are often loyal to their employers, help to grow the business in the long-term and support their employers in the community.
  2. Full-time employees provide lower turnover and lower wages.
  3. Regular employees create a sense of community and family in the workplace.
  4. They help market your business to their social circle.

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