An employer is considered an ALE if they had at least 50 full-time or full-time equivalent employees (FTEs) during the previous year. In other words, even if you don’t have 50 full-time employees, you might still be considered an ALE if all your employees’ work hours add up to the equivalent of 50 full-time workers’ hours. On a contract job, an employee works for a staffing firm on a W-2 basis under the direction of the client company for a predetermined amount of time to work on specific projects. Not to mention, you’ll have the freedom to choose which projects you want to take on, setting your own schedule in the process. In a contract role, you’re not often held to a set schedule like a full-time employee.

And, of course, what happens if you’re offered a full-time, permanent role at another company? Make sure you know exactly how you can gracefully exit the role if your circumstances change. If you don’t end up with a permanent role at the end of the contract, it’s far easier to explain any unemployment. You can also point out that you were professionally active and keeping your skills up to date with short-term employment. If it sounds like contract-to-hire positions benefit only the employer, rest assured that employees also benefit from contract-to-hire jobs—here’s how.

What is an EOR in Staffing?

Therefore, they are required to market themselves adequately to attract gigs from top tech companies. The technical aspect of the job prospect will likely remain the same which means companies will be judging you on your knowledge of data structures, system design and coding abilities. However, since you would be serving them for a shorter duration, there will be a lot more specificity with respect to required technical knowledge. A contractor and a company agree to a specified length of time during which a contractor will provide his full potential to a specific job.

It was the position that I felt was the most secure and would pay me the most. When I got my first Full-time gig at a financial company in which then progressed contract position vs full time at a reputable consulting company, I was set. I got my 9-5 filled with numerous activities and extra curricular training to get myself up the ladder.

Contract Software Engineering Jobs

If you’ve held a few positions with different companies or agencies, it’s still possible to group these together. Think about what they have in common — like a similar industry or type of role — and list them accordingly. Any time you enter into a contract-to-hire role with anyone, you should always have a written contract-to-hire contract. Contract-to-hire jobs also help individuals expand their professional network. Every person you work with during your contract is one more connection in your network. And while those connections may not help you land a job at that company, they may have other connections outside the company that could help you land a permanent job somewhere else.

When it comes to hiring, two types of workers primarily exist – full time employees and independent contracts. Each position has their own benefits and drawbacks from both a worker and employer perspective. For instance, while contractors may make a higher salary, they have to pay higher taxes come April 15th. Consequently, full time employees may not have the work flexibility, but their benefits tend to be far superior. In this blog we’ll talk about the differences between the two positions, and what employers need to look out for prior to hiring one versus the other. Compared to 1099 independent contractors, it may seem like you’re earning a lower pay rate.