Direct Hire Employee vs Contractor | Things you Need to Consider

Part of running a successful business is invariably determining when you need more help. Most new start-ups and small businesses begin the process by hiring outside contractors that can do the work for them. However, as a business continues to grow, some employers may be forced to hire new employees on a permanent basis.

Although the end purpose of any recruitment process has always been to find the right candidate for the job, direct hire employees and contractors are quite different, and so are the recruitment practices for each.

Differences between direct-hire employees and contractors

With the economy becoming so tech-oriented over the past few years, many employers are doing everything they can to position themselves as market leaders. Staffing can get difficult when all the best available employees are taken. To deal with this shortage, many companies hire contractors to fill the gaps.

On the other hand, direct hires are commonly ideal when an employer is looking for high-level talent that wants to be in an organization permanently. Direct hires are not typically recommended for candidates that will work part-time or work for you for less than a year. Additionally, if the new job posting lacks clarity, it is advisable to hire a contractor rather than spend time and money training a direct hire.

From an employer’s point of view, both direct and contractors are good options but an employer needs to understand the needs and wants of the business first before deciding. Contrary to popular belief, contractor hires are not inferior in any way to direct hires. The only difference is that a direct employee enjoys a different perspective in that he or she enjoys more stability and benefits compared to a contractor.

You should consider hiring an employee if:

• You need to supervise everything yourself.
• You want to control the hours, resources, and tools to be used by the worker.
• You need someone for a long-term stay.
• If the job posting is critical to the success of your business.

You should consider hiring a contractor if:

• The job to be done is not central to the functioning of your business such as maintaining your database.
• You do not need to supervise it.
• You are working on a short-term project.