Hiring resource

Contract vs permanent staffing: which one fits the role?

Not every seat should be a permanent hire. Here is how to tell which kind of staffing fits the work in front of you, plus a calculator to compare what each really costs.

Run the numbers

Compare the cost for your role.

Move the sliders to see a full-time hire against contract talent for the same stretch of work. Contract is not always cheaper. It is flexible, and that is the point.

Full-time, loaded
$0
$0 / month
Contract, same period
$0
$0 / month
  • No benefits, payroll taxes, or PTO to carry
  • No severance or unemployment exposure
  • Switch the role off the day the work ends

A rough guide, not a quote. Assumes about 173 working hours a month. Your real numbers depend on the role, the market, and your benefits load. Want exact figures? Talk to us.

The short version

Two different tools for two different jobs.

Permanent

For the work that never ends

A direct hire is someone you build around. They learn your business, carry the institutional knowledge, and grow with the company. You pay once and they are yours.

Contract & temporary

For the work with an edge to it

Contract talent is capacity you can turn on and off. A project, a busy season, a leave to cover, a function you want to test. You scale up when you need to, and stop the day the work is done.

Reach for contract when

Contract or temporary makes sense when...

The work has an end date

A project, a launch, a migration. You need the hands now, not forever.

Demand moves up and down

Seasonal swings, surges, or coverage for a leave. Flex the headcount with the workload.

You need to move fast

You cannot wait weeks for a full search. Contract talent can start in days.

You want lower risk

No long-term commitment and no severance exposure if the need changes.

You are testing a function

Try a role before you commit permanent headcount and budget to it.

Budget needs to stay flexible

Move spend from a fixed salary line to a variable cost you control.

Reach for permanent when

A permanent hire makes sense when...

The role is core

It sits at the center of how the business runs, day in and day out.

Knowledge compounds

The longer someone is in the seat, the more valuable they become.

You want true buy-in

Someone invested in the mission, the culture, and where you are headed.

Stability beats flexibility

The work is steady and you want a steady hand on it.

You are building a bench

You are growing a team that will be here for the long run.

The market is tight

For scarce talent, a permanent offer is often what it takes to land them.

Read the fine print

What a full-time hire really costs.

Salary is the number everyone quotes. It is not the number you pay. Once you load in payroll taxes, benefits, time off, and overhead, a full-time hire runs about a third more than the figure on the offer letter.

Base salary
$80,000
What you actually pay
$104,000
Base salary Payroll taxes, about 10% Benefits and insurance, about 15% PTO, equipment, overhead, about 5%

That is roughly 1.3 times base before they write a single line of work, plus ramp time and the cost of a mis-hire if the fit is wrong. A contract bill rate looks higher by the hour because it already carries all of this, and the agency holds the risk, not you.

Still deciding

Not sure which way to go? Tell us about the role and we will tell you straight.

We will not push you toward the bigger fee. We point you to the staffing that actually fits the work.