Nowadays, it is a trend in medium or large companies to hire contract or temporary employees along with full-time employees. Company or industry owners embrace the recruitment of candidates on a contract basis because of the many benefits of hiring contract employees. According to 2020 data, 40 percent of employees in US companies are hired on a contract basis.

A full-time job has its advantages. In fact, in some cases, full-time workforces are best for the smooth running of the company. However, contract jobs are cheap and less risky. Here, employers get opportunities to employ efficient people for their companies. And hence, the popularity of contract jobs is increasing.

Contract vs. full-time employee – which is best for your company? To determine this, you must first understand both employment structures. Both job structures have some advantages. Hence, you cannot directly consider the best employment structure for your company’s environment.

This article will elaborate on the contract and full-time employment frameworks, which will help you decide which employment structure to choose for your company. Let’s begin!

Critical Differences Between Contract and Full-time Jobs

Contract jobs and full-time jobs differ from each other in many respects. We are describing the cases underneath. A clear difference will be seen between the two, which makes them two different job structures.

  • Employment Security

Full-time jobs are considered secure jobs in terms of employment security, as this job is a permanent job, which is a source of regular earnings. In contrast, contract jobs are only for a few months or a year, depending on the agreement between the employer and the employee.

Once the contract is over, the job will be terminated and the employee will have to look for a new job again. So, there is no security of regular earnings in a contract job.

  • Salary

In most cases, the salary of a full-time employee is higher than that of a contract employee. The reason is that a full-time worker is associated with the whole company and his job. So, a full-time employee significantly promotes the company’s business. 

On the other hand, a contract employee is attached to his job only, for which he has taken the contract. He has not made any exceptional contribution to the company’s progress, as he joined the company a few months ago.

  • Flexible Schedule

In contract jobs, the schedule can be flexible. Here the employee is allowed to work according to his time. He is responsible for handing over his project within a time frame. Due to this flexibility, many people look for contract jobs. But, in the case of a full-time job, the employees have to do their work within the working hours. The employee is not allowed to work according to his time.

  • Place of Work

Contract employees are allowed to decide their place of work. They can work by staying in the workplace, or if they want, they can also do their job by taking them home on their own responsibility. In contrast, full-time employees are not given any option to select their work location. They have to work, staying in the office on a working schedule.

  • Training

Most companies’ employers arrange their training after hiring their full-time employees. Companies provide their full-time employees with introductory training to refresher courses to sharpen their skills. On the other hand, contract employees have to take responsibility for their initial training themselves. The company does not provide it.

Contract Vs. Full-time Employees – Which is the Best?

There are advantages to both contract and full-time employees. Full-time employees are usually loyal to the company and the owners of the company. You can trust them. But, if you hire a full-time employee, the risk is high, and the uncertainty about whether that employee will be a good fit for your company. In terms of full-time staff, you will have to invest more in their initial training and salary.

Conversely, you can hire a contract worker only when your needs arise. And after the market is over, you can give him a terminal letter. In the case of contract employees, you will not have to make any investment in their initial training. In addition, you can hire a contract worker cheaply. You can hire a new employee if he is not a fit for your company. Hence, from this perspective, contract employees are suitable for your company. 


However, if your company is medium or large, you cannot run it by relying only on contract employees. Along with the contract employees, you will also have to appoint full-time employees. Contract workers are practically best for small businesses that you handle yourself. Hire contract employees when you feel you can’t control everything alone, and dismiss them once the requirements are met.


In the current business environment, contract and full-time employees are significant and necessary for the smooth running of the company’s business. In many cases, full-time employees are the best, and in many cases, contract employees are considered better. Hence, you can hire both types of employees. Both the employment structures will be helpful for the improvement of your industry or company.