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When a Contractor Beats a Full Time Hire, and When It Backfires

How to choose between a contractor and a full time hire, counting ramp up time, the knowledge that leaves at the end, and the work nobody assigns.

Written by Sicherhaven

You have work piling up and nobody to do it. The choice is between hiring someone permanently and bringing in a contractor for a few months, and the two options never look the same on a spreadsheet.

A contractor beats a full time hire when the work has a clear end, when the skill is one you will not need again, and when the deadline matters more than what gets remembered afterwards. A full time hire wins when the work keeps going, when the person needs months of context about your product to be any good at it, and when someone has to pick up the small jobs nobody ever assigns.

The comparison most people run is wrong

The usual method is to compare a day rate to a monthly salary and stop there. That comparison flatters the permanent hire, because salary is only part of what a permanent person costs, and it flatters the contractor, because a day rate looks like the whole bill. Neither side counts what the vacant role costs in delivery days while you decide.

Three things belong in the count and usually are not.

  • Ramp up. Both options need it. A contractor often needs less, because they are hired for a narrow job and given a narrow context. A permanent person needs more, because you want them to understand the whole thing.
  • What leaves at the end. When a contractor finishes, everything they learned about why your system is shaped the way it is walks out with them, unless you made them write it down.
  • The unassigned work. Broken build scripts, a flaky test, a confusing bit of documentation. Permanent people fix these on the way past. Contractors, quite reasonably, do not.

When the contractor is the right call

Some conditions point clearly at a contractor.

The work is bounded. There is a version of "finished" you can describe in a sentence, and after that the need goes away.

The skill is a one off. A migration, a compliance piece, a specialist integration you will do once. Hiring permanently for this leaves you with a person whose main skill has no further use.

The timing is fixed and near. You need it before a date, and a permanent hiring round plus notice period plus onboarding takes longer than the deadline allows. Notice period maths is the part people underestimate most often.

You are testing whether the role exists. Sometimes you are not sure the work justifies a person. Six months of contract work answers that question with far less risk than a permanent contract does.

When it backfires

The contractor route goes wrong in a few predictable ways.

The work was not actually bounded. It looked like a project. It was really an ongoing responsibility with a project shaped opening. Six months in you are extending the contract for the third time, at a rate you would not have agreed to for a permanent role.

Nobody wrote anything down. The system works, and no one on your team can explain why any of it is the way it is. The next change to that area costs you more than the original build.

The knowledge was the point. Some work is valuable mainly because of what the person learns doing it. Customer support tooling, internal platform work, anything where the second year of the person's tenure is worth more than the first.

The reviewer became the bottleneck. Contractors still need review, direction and answers. If your one senior person now spends half their week supervising two contractors, you did not add capacity.

The work only a permanent person picks up

This is the part that never makes it onto a cost comparison, and it is often the deciding factor.

Every team carries a set of small tasks that were never assigned to anyone. Tidying the onboarding notes. Noticing that a warning has been in the logs for a month. Telling a new colleague which of the two similar tools people actually use. Permanent people do these things because they expect to still be there when the consequences arrive.

If your team is thin on that kind of quiet maintenance already, adding contractors makes it thinner.

A decision you can make in ten minutes

Answer four questions honestly.

  • Can you describe "finished" in one sentence? If not, lean permanent.
  • Will you need this skill again next year? If yes, lean permanent.
  • Does the deadline sit inside your hiring timeline? If not, lean contract, and allow more time again if the person would be relocating to another country for it.
  • Who reviews and directs the work, and do they have the hours? If nobody does, neither option works yet.

The one thing worth doing in either case is writing down decisions as they are made, and keeping them somewhere attached to the project rather than in someone's inbox. In SicherOne, project records and people records sit on the same data, so who did what and who is currently around are not two separate hunting exercises. That matters more when part of your team is temporary, because the record is the only thing that stays.

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