Hess Associates

What are the Disadvantages of Hiring Contract vs Full-Time?

1. Lack of continuity

2. Contractors expect freer rein in what they do as they are the subject matter experts

3. Your permanent employees may find comings and goings of contractors disruptive –
People they have just formed working relationships with disappear

4. Often work remotely so harder to communicate with

5. Are not invested in the success of your company

6. More likely to leave prematurely if they get a better offer

7. More frequent recruiting efforts to continually find contractors – a lot of turnover

8. You may be questioned about whether they are truly contractors or full time employees

9. Harder to fire – depending on how your agreement is written

10. Hard to build a core team if you focus on contractors – they do not add permanent value

11. Hard to build up assets – good employees are valuable assets

12. You may run into intellectual property issues with things that they create

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