What Is the Difference between an Independent Contractor and a Temporary Employee

As more and more companies turn to hiring independent contractors and temporary employees, it’s important to understand the differences between the two. While they may seem interchangeable, there are distinct differences that can impact your business and the workers you hire.

Independent Contractors

An independent contractor is a worker who is self-employed and provides services to a company on a project-by-project basis. Contractors are responsible for their own taxes, benefits, and equipment, and typically work with multiple clients at once. They are hired to complete a specific task, and once that task is complete, their work is done.

One of the biggest benefits of hiring an independent contractor is that they offer flexibility. Contractors can be hired for a specific amount of time or for a specific project, and once the work is done, the company isn`t obligated to provide any further employment. Additionally, contractors can bring a level of expertise and specialized skill to a project that may not be available within the company.

Temporary Employees

Temporary employees, on the other hand, are hired by a company to work on a short-term basis. They are typically hired to fill in for a permanent employee who is on leave, to help out during a busy season, or to work on a specific project. Unlike contractors, temporary employees are hired by a company and receive all of the benefits that come along with being an employee.

One of the biggest benefits of hiring temporary employees is that they are a great way to fill in the gaps when your permanent staff is unable to work. Additionally, they can be a great way to test out a potential permanent employee. If a temporary employee does well, they may be offered a permanent position within the company.

So, what’s the difference?

The main difference between contractors and temporary employees is the nature of the work they do. Contractors provide a specific service or complete a specific project, while temporary employees are used to fill in gaps in staffing. Additionally, contractors are responsible for their own taxes, benefits, and equipment, while temporary employees receive employee benefits.

While both types of workers offer benefits, it’s important to understand the differences between them and to use each type of worker appropriately. Hiring independent contractors can offer a specialized skill set for specific projects, while hiring temporary employees can fill in gaps in staffing and offer potential permanent hires.