{"id":999881656,"date":"2019-10-23T07:00:00","date_gmt":"2019-10-23T07:00:00","guid":{"rendered":"https:\/\/www.dice.com\/?p=541613488"},"modified":"2025-09-24T07:05:22","modified_gmt":"2025-09-24T13:05:22","slug":"better-hire-contractors-full-time-employees","status":"publish","type":"post","link":"https:\/\/www.dice.com\/hiring\/recruitment\/better-hire-contractors-full-time-employees","title":{"rendered":"Is It Better to Hire Contractors or Full-Time Employees?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Let\u2019s start with contracting itself. Hiring managers know that contractors are a flexible option for completing projects, especially when the budget isn\u2019t there to hire a full-time worker. Indeed, employee-placement service Adecco once  <a href=\"http:\/\/blog.adeccousa.com\/contract-to-hire-the-real-story\/\">posited<\/a>  in their blog that hiring budgets are the root cause of companies\u2019 embrace of contract workers.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile\" style=\"grid-template-columns:41% auto\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.dice.com\/hiring\/wp-content\/uploads\/2025\/09\/cropped-shutterstock_378606157-1024x576-10-1024x576-1.webp\" alt=\"\" class=\"wp-image-999885057 size-full\" srcset=\"https:\/\/www.dice.com\/hiring\/wp-content\/uploads\/2025\/09\/cropped-shutterstock_378606157-1024x576-10-1024x576-1.webp 1024w, https:\/\/www.dice.com\/hiring\/wp-content\/uploads\/2025\/09\/cropped-shutterstock_378606157-1024x576-10-1024x576-1-300x169.webp 300w, https:\/\/www.dice.com\/hiring\/wp-content\/uploads\/2025\/09\/cropped-shutterstock_378606157-1024x576-10-1024x576-1-768x432.webp 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<h4 class=\"wp-block-heading\" id=\"h-hiring-tech-professionals-check-out-dice-s-job-posting-template-library\">Hiring tech professionals? <a href=\"job-description-templates\">Check out Dice&#8217;s job posting template library.<\/a><\/h4>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p>Many jobs also don\u2019t have enough of a workload to justify a full-time employee; for example, if a company\u2019s mobile app only needs an occasional tweak or bug-squash, a manager may hire a contractor to check the code out on a periodic basis, as opposed to onboarding someone to sit at a desk full-time.<\/p>\n\n\n\n<p>As Adecco\u2019s posting also pointed out, companies may leverage contractors in a temp-to-hire situation: \u201cThey want to make sure that a candidate has the necessary skills and is a good culture fit before employing them directly\u2026 Employee turnover is expensive \u2013 and if a contractor is terminated, the staffing agency is responsible for the unemployment costs.\u201d<\/p>\n\n\n\n<p>In some ways, contracting with an eye toward a full-time position is more effective than the traditional interview process, which is long and possibly unattractive to teach pros, who often don\u2019t feel like the rigmarole of a whiteboard interview is worth their time. On paper, it\u2019s a win-win scenario for the employer: a company gets talent, quickly, but doesn\u2019t have to immediately offer benefits to a new contractor hire.<\/p>\n\n\n\n<p>However, recruiters and hiring managers must remain aware of contracting\u2019s potential downsides. A recent Wharton School paper titled \u2018<a href=\"http:\/\/knowledge.wharton.upenn.edu\/article\/the-perils-of-contract-workers\/\">Is the Rise of Contract Workers Killing Upward Mobility?<\/a>\u2019 touches on this issue. It argues that contract workers are attractive to companies because they\u2019re not a fixed cost: Instead of maintaining an employee indefinitely, a firm can bring in a contractor for a task, then allow the contract to end whenever the time is right. But that just leads to uncertainty and instability for the tech pro, including (but certainly not limited to) a lack of opportunities for promotion.<\/p>\n\n\n\n<p>Wharton professor of management Claudine D. Gartenberg paints an unflattering picture: \u201cThis is what the American Dream is built on \u2014 upward mobility. Contract work and outsourcing, among other factors, appear to be disrupting that engine, and it is not clear what the best policy response, if any, should be.\u201d<\/p>\n\n\n\n<p>Whether or not more Americans are being promoted, all signals suggest that hiring as a whole is up. In fact, the number of job postings between Q1 and Q3 of 2018 and 2019 is up 45%. A combination of old technologies (cloud, virtualization) and new ones (artificial intelligence, machine learning) are  <a href=\"\/recruiting\/companies-hungrier-cloud-docker-talent\">breathing new life<\/a>  into the tech industry and the demand for professionals that are proficient in those skills is following.<\/p>\n\n\n\n<p>If the core question is whether contractor employment hurts traditional hiring practices, the answer seems to be no: tech jobs are still being added, a healthy portion of them full-time positions. But how many people within the overall pool have the opportunity to climb to the upper-level positions they want? And what sort of impact does that have on company morale and employee effectiveness?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let\u2019s start with contracting itself. Hiring managers know that contractors are a flexible option for completing projects, especially when the budget isn\u2019t there to hire a full-time worker. Indeed, employee-placement service Adecco once posited in their blog that hiring budgets are the root cause of companies\u2019 embrace of contract workers. Hiring tech professionals? Check out [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":541613488,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2155],"class_list":["post-999881656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hiring-candidates"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Hiring Contractors vs Full-Time: What to Know - Dice Hiring<\/title>\n<meta name=\"description\" content=\"Let\u2019s start with contracting itself. 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Hiring managers know that contractors are a flexible option for completing projects, especially when the budget isn\u2019t\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dice.com\/hiring\/recruitment\/better-hire-contractors-full-time-employees\" \/>\n<meta property=\"og:site_name\" content=\"Dice Hiring\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dice\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-23T07:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-24T13:05:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.dice.com\/hiring\/wp-content\/uploads\/2025\/03\/cropped-shutterstock_343071545-1-1200x674-3.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"674\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dice Staff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Dicedotcom\" \/>\n<meta name=\"twitter:site\" content=\"@Dicedotcom\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dice Staff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees\"},\"author\":{\"@type\":\"Person\",\"name\":\"Nate Swanner\",\"url\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/authors\\\/nate-swanner\",\"sameAs\":[\"https:\\\/\\\/x.com\\\/NateSwanner\"]},\"headline\":\"Is It Better to Hire Contractors or Full-Time Employees?\",\"datePublished\":\"2019-10-23T07:00:00+00:00\",\"dateModified\":\"2025-09-24T13:05:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees\"},\"wordCount\":536,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/cropped-shutterstock_343071545-1-1200x674-3.jpg.webp\",\"articleSection\":[\"Hiring Candidates\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees\",\"url\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees\",\"name\":\"Hiring Contractors vs Full-Time: What to Know - Dice Hiring\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/recruitment\\\/better-hire-contractors-full-time-employees#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.dice.com\\\/hiring\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/cropped-shutterstock_343071545-1-1200x674-3.jpg.webp\",\"datePublished\":\"2019-10-23T07:00:00+00:00\",\"dateModified\":\"2025-09-24T13:05:22+00:00\",\"description\":\"Let\u2019s start with contracting itself. 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