Hiring contractors vs. full-time employees

When it comes to building your workforce, you face a fundamental decision: hiring contractors or full-time employees? Each option has its own advantages and disadvantages as well as use cases.

contractors vs fullt-ime employees

Benefits of hiring contractors

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Contractors offer flexibility, allowing you to scale your workforce up or down as needed. This is ideal for project-based work or seasonal demands.

Specialised Skills

Contractors offer flexibility, allowing you to scale your workforce up or down as needed. This is ideal for project-based work or seasonal demands.

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Hiring contractors can be cost-effective, as you're not responsible for benefits, taxes, or overhead expenses typically associated with full-time employees.

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Use cases for hiring contractors

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Short-term projects

Contractors are perfect for temporary projects with defined start and end dates.

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Specialised services

When you require highly specialised skills for a limited duration, contractors are the go-to choice.

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Use contractors for scaling up or down rapidly, adapting to changing business need.

Risks of hiring contractors

Every country has its own laws and regulations regarding hiring contractors and the potential risks which may result in high fines for both parties. Some general risks are:

While contractors can provide flexibility and specialised skills, they may not align with the long-term goals and culture of your company. It’s essential to carefully consider the advantages and disadvantages as well as the legal risks associated with employing contractors in your country.

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Benefits of hiring full-time employees


Full-time employees are dedicated to your company's long-term success, fostering a sense of loyalty and culture within your organisation.

Skill Development

You can invest in employees' training and development, helping them grow alongside your company.

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Full-time employees provide stability and reliability in day-to-day operations and long-term planning.

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Legal compliance

When hiring full-time employees your company is not entering into any legal and tax related risks.

Full-time employees

Use cases for hiring full-time employees

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Core team members

Hire full-time employees for roles critical to your company's core functions and long-term strategy.

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Company culture

Employees contribute to and shape your company culture, making them essential for building a cohesive and productive team.

Long-term growth

If your business is stable and growing steadily, investing in full-time employees ensures a committed workforce for sustainable success.

How to convert a contractor to a full-time employee?

You have the option to engage an Employer of Record (EOR) provider like WorkMotion. With this arrangement, the contractor is hired as a full-time employee through the local branch by a third-party entity, in this case, WorkMotion.

The EOR service provider formally takes on the role of the employer within the employment contract, but the employee retains the authority to provide instructions to the actual employer. The specifics of this arrangement are defined in a separate service agreement between the primary employer and the EOR provider.

Benefits of choosing WorkMotion as an EOR

Hire across the globe through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

Access all ongoing onboarding activities on one easy-to-view dashboard and pay employees on time and in their local currency.



Hire highly skilled talent from over 160 countries around the world



Pay your international team on time and in their local currency


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