Recruiting is filled with tough choices. One of the common dilemmas which organisations face while hiring is whether they should hire full-time employees or go for contractors. Each of the two options has its own merits. Contractors may be onboarded easily, while the process for onboarding a regular employee may be more tedious and longer. Further, hiring by way of regular employment subjects an organisation to quite a few employment laws, which would not be applicable if it hires contractors (albeit other laws may apply). These employment laws may dictate working hours, leave, social security and termination, among other things. However, despite all the regulations which apply, organisations do go for hiring people as employees. Now, why is that? Well, there are quite a few things which play in the mind. An organisation looking to enter a new geography as a market, may like to give the impression that it is there for the long term. Hiring contractors might give the impression that the organisation is only testing the market. Conversely, if it is indeed testing a new market (and does not mind giving the impression, either), it would surely make sense to hire contractors. Also, certain functions, because of their nature and the information handled by them, may be entrusted only with employees. Hiring employees gives greater administrative control over them, which may be absent or substantially diluted in case of contractors, as these relationships are legally considered as principal-to-principal. 

Employees feel a greater sense of loyalty and belongingness; something which may be absent in case of contractors. Contractors are also likely to take up other engagements, thereby dividing their time and commitment between multiple principals/clients. 

At Futueor, we try to understand our clients’ requirements and provide them with all the relevant information so that they may make the best decisions. Once they have chosen the best fit, they leave the rest to us. Futueor helps its clients to hire employees and/or contractors, as per their business needs. Please note that Futueor also hires contractors on behalf of its clients, as part of the larger EOR solution.