Hiring: Full-time, Part-time, or Contract-to-Hire
Learn the pros and cons of each type of worker to discover which one meets your needs, whether you’re hiring staff for your small business or large enterprise.
Full-time employees
The IRS defines a full-time employee as someone who averages at least 30 service hours per week. Full-time employees are best suited for long-term projects that directly impact your company’s mission, require close supervision, or rely on building interpersonal relationships.
Pros:
More control over the work
You decide how employees are trained, when they should work, what tools and processes they should use, and what they should prioritize. You can supervise closely or check in regularly on the status of their work.
Better relationship building
Full-timers can develop meaningful bonds with other employees as well as clients. This is especially useful when they have unique insights into a particular market or clientele.
Employee retention and loyalty
Full-time employees gain a sense of job security and community, encouraging them to invite more potential followers, customers, or candidates. Full-time compensation and benefits can greatly reduce your turnover costs.
Cons:
Payroll and benefits management
Employers must pay out regularly and manage benefits (including paid time off) for full-time employees using some type of payroll solution. They must also navigate a multitude of tax requirements.
Cost of development and reimbursement
To keep your workforce skilled and relevant, invest in your full-timers by paying for their training, mentorship, equipment, and travel.
Less flexibility for the employee
Full-timers often exchange work flexibility for job security. Keep employees engaged and enthusiastic by maintaining a positive company culture.
DID YOU KNOW?
Replacing an employee can cost up to twice their annual salary.
Part-time workers
Part-time employees typically work fewer hours than full-time staff, often under 30 hours a week. They can play a key role in helping small businesses stay agile and cost-effective.
Pros:
Adaptable labor costs
Hiring part-time employees can provide a cost-effective way to align team size with your business needs.
Flexible scheduling
Part-timers are ideal for covering peak hours, weekends, or seasonal demand.
Access to specialized skills
If your business requires specialized skills like bookkeeping or social media management, but not full time, part-timers are a great option for filling these roles.
Easier to adjust staffing levels
Scale up or down to meet short-term goals such as hiring more help during tax season, the holidays, or a product launch.
Cons:
Scheduling trade-offs
Part-time employees often balance multiple commitments, so that coordinating availability can sometimes be a challenge.
Limited engagement
Because part-time employees spend fewer hours on the job, they may feel less connected to your business.
Turnover risk
Part-timers typically stay in roles for shorter periods of time, which can lead to challenges in maintaining consistency across roles, increased operational costs and loss of institutional knowledge.
Training overhead adds up
While part-time employees can be a cost-effective staffing solution, onboarding and training still require the same time and effort as full-time roles.
DID YOU KNOW?
According to Gallup, replacing an employee can cost up to twice their annual salary.
Independent contractors
Contractors are independent workers well suited for short-term assignments or peripheral, low-supervision projects that require specialized skills.
Pros:
Seasoned expertise for a flat rate
You can negotiate up front for top-tier services on projects that are smaller, more time-bound or discrete, or require a specialized touch.
Minimum setup required
Contractors usually have their own equipment, network connections, or team. The right contractor can help you hit the ground running on projects with quick turnaround.
Diverse backgrounds and experiences
Contractors are exposed to a wide variety of clientele, best practices, and learnings across their industries. You can tap contractors for knowledge about trends or new approaches.
Cons:
Divided attention
Contractors may work hours that don’t align with yours, and may be juggling multiple projects.
Less control over the work
Because contractors use their own tools and teammates, some of their processes might interfere with yours. It’s important to agree beforehand on a project’s “how” and “when” in addition to its “what.”
Not a permanent solution
Hiring seasonality, economic trends, or competitors might make your best contractors suddenly unavailable. A good solution is the contract-to-hire employee.
DID YOU KNOW?
Contract workers can only work a maximum of 1,040 hours per year, per employer.
Contract-to-hire workers
Contract-to-hire workers begin as contractors and become full-time employees when they fill recurring or increasingly complex business needs. When building a smaller team, you can hire contractors to fill immediate objectives and then keep the most qualified workers.
Pros:
Try before you buy
On contract, you can sample the employee’s quality of work while simultaneously giving the employee a taste of your company. If it’s not a match, no one is under pressure to renew the contract.
A hiring advantage over your competitors
If you already know a contractor is qualified, you don’t need to waste time interviewing candidates — and you can keep talent away from the competition.
Lower overhead costs
Contractors often provide their own work equipment, which lets you reserve budget for full-timers and critical objectives. Offer the best contractors more work to keep them engaged until a full-time position opens.
Cons:
Unaligned hiring expectations
Be upfront with contractors about what type of contract or consulting jobs you’re offering and whether a full-time slot will open. There's a subtle but important difference between a contract with the intention to hire and a contract with the possibility to hire.
Not a full-time match
Some contractors simply want to maintain their own hours, projects, studios, or brands, which might conflict with tying themselves exclusively to your company culture or mission.
Endless auditioning
Don’t slip into the cycle of repeatedly hiring and onboarding contractors just to let them go. Clearly define what the current role requires and how you expect it to evolve.
PRO TIP
Collect the correct W-9s from vendors early on to prevent you from incurring expensive tax penalties.
Find qualified workers for the short and long term.
If you’re looking to accomplish specialized tasks fast, using a contractor or part-time hire might be a good solution. But if you’re ready to invest in a full-timer, the returns can be enormous. And if you have the time to “try before you buy,” contract-to-hire work can build lasting employees from temporary projects.
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Hiring FAQs
Why should you use LinkedIn Recruiter?
Does it cost more to hire part-time or full-time?
The choice between hiring part-time or full-time employees depends on operational needs, budget, and growth goals. Part-time employees offer budget and commitment flexibility, making them ideal for fluctuating workloads or limited resources. However, full-time employees often bring greater stability, deeper engagement, and long-term value, which can be critical for scaling operations and maintaining consistency. Weigh the benefits of flexibility against the advantages of a more committed, full-time team to determine the right mix for your needs.
Why should you use LinkedIn Recruiter?
Why do some companies only hire part-time?
Some companies hire only part-time workers to save on costs and stay flexible, especially when demand shifts. This is common in retail, food service, hospitality, and gig-based industries. For small businesses, part-time hiring can be a cost-effective way to manage workloads without committing to full-time salaries and benefits.
How much does it cost to post a job with LinkedIn Jobs?
What are the key steps to hiring for a small team?
Start by clearly defining the role. Post the job on a platform like LinkedIn where your ideal candidates are likely to see it. Then screen and interview with a focus on skills, cultural fit, and growth potential. Ensure your offer aligns with legal and payroll requirements.
LinkedIn offers tools that can streamline the process and help you connect with top talent. Explore LinkedIn Jobs with built-in AI features.
How much does it cost to post a job with LinkedIn Jobs?
What tools are available to help me hire on LinkedIn?
LinkedIn offers several products and add-on tools designed specifically to help you hire efficiently, including LinkedIn Recruiter, LinkedIn Jobs and more. Learn more about. Learn more about LinkedIn hiring and recruiting solutions.
How much does it cost to post a job with LinkedIn Jobs?
How do you post a job on LinkedIn?
It’s easy! To post a job on LinkedIn, log in and click the “Jobs” tab at the top of your homepage, then select “Post a free job.” Enter the job details, set application preferences, review, and publish. Try it for free.
Ready to build the best team possible?
It all starts with the right job post.