Pros and cons of hiring employees on a contractual basis

Contractual hiring has been a part of the industry for a long long time. Every business organization, from IT to logistics and even medicine and pharma prefers bringing in talent on contractual basis, especially when a certain project is needed to be delivered on time and value.

Third party HR strategy consulting give a lot of emphasis on contractual staffing because it is cost efficient and cheaper. But at the same time, there are certain risks involved that many tend of ignore.

You can always turn to companies providing human resources advisory services for contractual staff, but the list below will tell you about some of the cons attached with contractual staffing.


  1. Contractual staff members only care about delivering the project and nothing else
  2. They are already experienced and no funds are needed to be spent for their training or growth
  3. Hiring a contractual staff member is really cheaper compared to a full time employee. Their contractual payment is often less than an overall package of a permanent staff
  4. They bring an outside perceptive to the business and it proves really beneficial when it comes to mentorship of the team these contractual staff members are working with


  1. Contractual staff is not bounded by the rules of the company. They don’t have any stakes in promotion or performance so they don’t really become a part of the project and often deliver half baked projects.
  2. Since contractual staff only joins a company to deliver a single project, they usually don’t contribute to anything else and it is not beneficial for the business
  3. Their hiring are bonded by legal clauses. One must remain clear on all fronts so that there is no trouble like lawsuits or legal proceedings in case the contractual employee fails to deliver.
  4. Letting these professionals used to the work environment may take time

More and more professionals are moving towards contract hiring and staffing. There are many benefits but often proves costly and confusing to both parties. After proper understanding of every necessary details you should make sure that is it really favourable to go with contractual hiring or a full time employee will prove equally beneficial. Both types of hiring can be managed by an expert HR Strategy consulting company which will help in recruiting best talent.

Circular Angle is one of the biggest companies providing third party Human Resources Advisory Services. For more details on contractual hiring, feel free to contact their team of experts.


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