So it is contract employees vs regular employees. What is the best option? There always is plenty of debate on the subject. The best way is to compare the benefits of hiring contract employees Vs regular employees. There is this theory that contract employees are not loyal or considerate of organizational goals but reality contract employees work far more professionally and deliver quality work because it is their work and their reputation related with it that enables them get more work. Regular - on board - employees can be a bit laid back because they know for sure that there check would be ready for them at the month end. Contract employees get no benefits where as regular employees have plenty. dms
Contract employee gets no workman's compensation, no unemployment insurance, no medical /dental/life insurance, no paid vacation, no sick time, no 401 matching. In the benefits department in the race between contract employees Vs regular employees, contract employees lose big time. If one hires contract labour, he or she needs to issue a 1099. For contract employee one doesn't need to pay employment taxes and for on board employees one needs to pay them. Contract employees cannot sue the employers but regular can sue the employers for unfair labor practices or discrimination.