Contract vs Permanent Employment
Contract or permanent employment? Decisions, decisions. It can be a challenging one to decide, so we've gone ahead and mapped out both the pros and cons of these employment types so you can make an informed choice.

Contract pros:

1. Gaps are filled quickly

As many would have experienced, unexpected resignations happen frequently in the workplace, which can inundate employees with extra work. A resignation can cause plenty of chaos in the workplace, but if you decide to bring in a contractor this can quickly and conveniently fill that vacant position (relieving the stress of your employees!). Contractors are ideal as they have the key skills and can start at a short notice — sounds like a win-win if we’re concerned.

2. Contractors can be trialled

Instead of going out on a limb with a permanent employee, companies might find it more beneficial to hire a contractor to see how they’ll fit into their work culture. It’s imperative that employees — both new and old — get along like a house on fire. It also makes for a more enjoyable work environment, and by hiring a contractor, your company can essentially test the goods before locking anything permanent in.

3. Projects are completed efficiently

If you hire a contractor with a specific skill set, more than likely, they’ll be able to complete top-notch projects for your business. Unlike permanent employees, they won’t be inundated with a constant stream of chain emails or loads of (hilariously inappropriate) messages from the team. They’ll simply just get their sh!t done.

Contract cons:

1. Contractors are expensive

When it comes to contractors, one of their downsides is their hourly pay, as it’s much higher than full-timer rates. But keep in mind that this is only considered a negative if you’re looking to keep a contractor on for an extended period. For contractors, think: the shorter time period, the better — your wallet will thank you later.

2. Integrating contractors into your company culture is difficult

Because contractors are simply filling a gap or working on a project within a small time frame, it’s challenging to integrate them into your company’s work culture. It takes time to build rapport; whether that be chit-chatting about your weekend or getting in on the harmless office banter, it helps to feel part of a team. By hiring a contractor, your office could feel slightly disjointed.

Permanent pros:

1. Permanent employees keep the intellectual property inhouse

Hiring a permanent employee instead of a contractor could be more suitable if your company likes to keep the intellectual property in-house and from leaking out into the abyss of your industry. With permanent employees, you can rest assured knowing that your top-secret information will be kept private. Snitches get stitches.

2. Chance to build a tight knit team

There’s nothing like having a tight knit team who work hard together and achieve great new heights! Work hard play hard, right? It makes sense because permanent employees understand they’ll be in their roles for a long time and want to make good impressions, interact with colleagues, and find happiness at work. So, it’s understandable that a permanent employee will make more of an effort to form close bonds.

3. Gain more knowledge

If you hire a permanent employee, they will naturally gain more knowledge about the industry and business they’re working for, which will become valuable for your company. A permanent worker will soak up useful information over a long duration and become an invaluable member of your company.

Permanent cons:

1. Might upset the team with an external hire

Teamwork makes the dream work. And you wouldn’t want to upset the team, would you? If you do a quick external hire, the team might take offence especially if the role could have been hired internally or a valued employee could have been promoted.

2. The risk of a bad fit

Hiring a permanent employee can be a mistake if you discover they’re the wrong fit for your business. However, if you’ve hired a contractor, there isn’t a risk because their contract will expire (obviously!)

So, whether you’re looking to hire a contract or a permanent position, look no further than JDP! You know where to find us.

Psst! Want to hear some of our hiring horror stories? 

“I’ve had candidates who asked for $1000 per day, and they declined the role because I could only get them $950.”

“I had a contractor tell me he was happy to proceed, but he wouldn’t be interviewing as he didn’t have the time but assured me, he was qualified.”

“I had a contractor who didn’t show, because he received an extra $100 a day for a new contract. He was 3 weeks into a six-month contract. No notice. Just didn’t show up. Some might call them mercenaries.”