Distinguishing between temp work and contract work can be confusing. However, it is essential for your business to understand whether you need temporary workers or a contractor. There is a lot of overlap between temp work and contract work, but they’re not the same. Mislabeling positions can lead to challenges such as tax burdens, legal issues, and more.
Here’s what you need to know about the differences between temporary work and contract work so that you can determine which type of worker you should hire for your business.
Why People Confuse Temp Work And Contract Work
Business owners can often get confused about whether their project is better suited for temp work or contract work. This is because both temp work and contract work are not permanent. The workers only work for a specific period of time. They both work to fill a specific need that you wouldn’t hire a permanent employee for, either because the project doesn’t last long enough or because it would be too costly.
It can also be confusing because temp agencies typically enter into a contract with a business in order to provide them with temp workers as needed. The fact that there is a contract involved can lead business owners to think that temporary workers are contractors.
What Is A Temporary Worker?
A temporary worker is someone that you can hire for a temporary period of time or someone who is employed by a staffing agency to fill temporary positions. Temporary workers can work either full-time or part-time hours. They work on an as-needed basis.
Their job is to help with a job for a pre-determined period of time, ranging from days to weeks to months. They can help with increased demands that don’t necessitate hiring another permanent employee, such as during the holiday season, when one of your permanent employees is on maternity/paternity leave, or when you experience a temporary influx of work.
If your business has the means and availability, you can hire on a temporary worker as a permanent employee after their temp work assignment is completed.
What Is A Contractor?
A contractor is a self-employed worker. Contractors are also called contract workers, freelancers, independent consultants, or gig workers. They work on a contract basis and are not your employee. Both you and the contractor agree on a contract, and then you pay them the rates that they charge for their services. Contractors may work either on an hourly rate or with a flat rate.
Contractors generally choose their own hours and work where they want. They’re usually hired to help with a project that needs specialized work. For example, if you write a book and you want a cover for it, you would hire an artist to create your cover, but you wouldn’t hire the artist on as a permanent employee.
How Do You Choose Between Temps And Contractors?
You can actually have both temporary workers and contract workers working with you at the same time. It’s important to distinguish between the two to ensure that everything runs smoothly.
Temporary Workers
Temporary workers are good for when you need help, and fast. They work with your permanent employees and should be treated the same. As such, temp workers use your equipment, work the hours you need where you need the work done, and need to adhere to your company guidelines.
You typically pay the staffing agency to provide you with temps that the staffing agency has screened and deemed qualified to meet the requirements of your project. The staffing agency then pays the temporary workers.
Contract Workers
Contract workers are good for when you have a temporary project that needs a specific skill set. For example, if you need to build a website, you can hire a web designer. Contractors tend to be specialists in their fields, and typically their prices reflect their expertise.
The contractor delivers the work required by the contract. It is often beneficial to hire a contractor when you need specialized work for a specific project, but not for your typical work projects. When it wouldn’t make sense to hire a permanent employee to do work that you only need done every once in a while, it is often better to hire a contractor.
Do You Need Temporary Workers?
All Trades Staffing Services hires temporary workers who are experienced in all sorts of different fields. We can work with you to find qualified workers that can fulfill the requirements of your project. Contact us today to learn more about our temporary staffing services.
