Contract vs. Employment

Contract vs. Employment: "Following are some common points to consider when faced with making a decision on contract vs. employment:

• Contractors are usually hired for a fixed duration to perform very specific tasks or complete a designated project.
• Employees usually perceive more job stability than contractors.
• Contractors are expected to be skilled professionals and should require little ramp-up time, training or guidance.
• Contractors can earn up to 10-25% more than a respective employee.
• Contractors usually sign extensive Employment Agreements that are geared towards protecting the interests of a client company.
• Employees normally receive sick pay, whereas contractors do not.
• Contractors are normally paid on an hourly basis vs. salaried and therefore are paid for every hour they work.
• Contractors achieve more diversity through exposure to multiple companies and diverse projects.
• Contractors usually avoid office politics that can entangle and sidetrack employees.
• Employees are usually eligible for promotions and can apply for new positions within an organization, whereas contractors usually are not.
• Contractors may not be eligible to participate in a company's employee-related functions."