Full-Time vs Contract Hiring – an Unbiased Analysis

Contract employees can be lucrative to a business that is just setting up its base.

Take for example the idea of offshoring. It allows a company to curb one of the most expensive part of its budget, the cost of human capital.

Putting together the right team for a growing business can be quite a task, and what becomes more crucial in the formation stage is the decision of whether to draft the team using contract, or should you go for full-time workers.

That being said, here are two major facets you should be looking at while taking the decision:

Full-Time vs. Contract Hiring –Employer’s Standpoint:


A full-time worker is here to stay, he or she is most probably dreaming to grow, enhance their skills and then look for better and brighter prospects, and that could be within your company or outside.

Hence, the loyalty factor in employees who have pledged to spend a specific term in your company is higher, as compared to a freelancer or a contractual worker, who if given a better opportunity will quit the task at hand and move on for greener pastures.

Expert Hire

Usually it is a third party consulting firm that takes care of contract-to-hire employees. A contract-to-hire employee comes with diverse experience, which is why they to get on board and clear the tasks quickly.

Selecting someone who has varied experience will help you save time on training. However, let an expert do the hiring as they have fair knowledge about how to choose the right candidate.

Full-Time vs. Contract Hiring –Employee’s Standpoint:

From the point of view of an employee, there is a lot of independence when you take up a job on a contract basis.

If you are an employee who possesses a hard skill which is in demand in the market, you too have the choice of deciding whether to go for a full-time job, or stick to a company for a particular time period on a contractual basis.

That been said, here are two major factors that you as a prospective employee should be looking at before taking a decision about your career.

Training & Promotion

When a company takes you in for a long time, it is ready to invest in you. As a full-time employee, you will have the benefit of receiving training, which is a luxury, as compared to a contractual worker who most probably have to be on board and would have to learn about the job, while being in it.

Also, with enough training and probation period which is often granted for an employee to learn and grasp the job, the chances of you getting a promotion, and having a stable future and career is higher.

Pay Pack

On a contractual job, the number of zeroes in your pay check will be more. This is majorly because it is a temporary role, and therefore less secure.

Another important reason why a contractor is paid more is because the employer, after having taken you on board would like you to stick to the job.

The employers too have fair idea of the market and looking at the nature of the job would not want to lose the employee, at least till the task at hand is done.


The IT industry specially has a lot of opportunities for both contractors as well as full-time employees.

Pros and cons are attached to both types of employment from an employer and an employee’s point of view.

However, as an employer, the burden of taking a decision of whether to hire employees on a contractual basis or full-time can be difficult. If you too are in a dilemma, then let KISL Technology help you with its staffing services.

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What do you think?

Written by Kisl

KISL Technology is a Malaysian company which provides services like IT Outsourcing – (Offshore and On-premise), Technology Consulting, Permanent Staffing and Service Desk Support to businesses in KSA.

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