Imagine you’re ready to scale your business and make your first hire. Instead of it being the exciting moment it should be, you’re unsure as to whether it’s best to make a full-time hire, outsource, or work with contractors.
What’s the difference? What’s best for your business?
The right choice isn’t always obvious. You have your unique business needs, budgets, and growth projections to consider.
In this article, we’ll explore the benefits and drawbacks of full-time, contract, and outsourced hiring. We’ll also share why you should consider managed virtual assistants––spoiler alert, they’re often the best solution to your admin woes.
Table of Contents
- So What’s the Difference Between a Full-Time Hire, Contract Work, and Outsourcing?
- The Pros and Cons of Full-Time Employees
- The Pros and Cons of Contracting
- The Pros and Cons of Outsourcing
- In-House Assistant Vs. Contract Assistant Vs. Virtual Assistant
- Full Time vs. Contract vs. Prialto
So What’s the Difference Between a Full-Time Hire, Contract Work, and Outsourcing?
When you’re scaling your business and ready to start delegating some tasks, you can choose between hiring full time, contracting, and outsourcing. There’s no one size fits all solution––the best type of hire depends on your immediate needs and future goals.
With so many options out there, it’s easy to get confused.
Let’s break it down: full-time hiring vs outsourcing vs contracting.
Full-Time Hire
This is your traditional employee—the person who’s in it for the long haul. A full-time hire is someone who works a standard schedule (usually 35-40 hours a week) and is fully integrated into your team.
Full-time employees get the benefits package, have a permanent desk (whether that’s in an office or at home), and become a part of your company culture. Full-time employees are ideal when you need someone who’s deeply invested in your business, and you’re ready to make a long-term commitment to them.
Typically, a full-time hire is the most expensive of the three options, but it grants you the most control.
Contract Work
Think of contract workers as specialists. These are the folks you bring on board for specific projects or to fill short-term needs. Contractors are usually highly skilled in a particular area—whether it’s web design, marketing, or accounting—and they’re hired to tackle a set task or project.
Contracts can range from a few weeks to several months, and once the job is done, they move on. Most contractors will have several clients they’re working with simultaneously.
Contract workers give you flexibility and access to specialized skills without long-term commitment.
Outsourcing
Outsourcing is like hiring a team without the commitment of actually hiring a team. When you outsource, you hand off a portion of your business operations to another company or a third-party provider.
You could outsource anything from customer service and IT support to administrative tasks or even entire departments. Outsourcing is a great option when you need to get something done but don’t want the hassle of managing it in-house. Plus, it often comes with cost savings since you’re not responsible for employee benefits or overhead.
Read more: The Difference Between Offshoring vs. Outsourcing
The bottom line: Full-time hires are best for long-term, core roles; contract workers are perfect for short-term, specialized projects; and outsourcing helps you offload repetitive tasks that you don’t need to handle internally.
The Pros and Cons of Full-Time Employees
When deciding whether to bring on a full-time employee vs. a contract or outsourced option, it’s important to weigh the potential benefits and drawbacks.
Here’s a quick rundown:
Pros:
- Loyalty and commitment. Full-time employees are more likely to feel invested in your company’s long-term success.
- Consistent availability. Regular hours mean that employees are there when you need them.
- Company culture. Full-time staff help shape and maintain your company culture.
- Skill development. Employees can grow with your company, acquiring new skills and taking on more responsibilities over time.
Cons:
- Higher costs. Salaries, benefits, taxes, overhead, and other employee-related expenses add up quickly.
- Less flexibility. Full-time employees are less flexible when it comes to scaling up or down––you’re committed to their role regardless of business fluctuations.
- Onboarding and training. Bringing a new full-time employee up to speed takes time and resources, which represents investment.
- Legal obligations. Full-time employment comes with legal obligations, from providing benefits to adhering to labor laws, which can be cumbersome for smaller businesses.
The bottom line: If your business is stable and you need a dedicated team member who can grow with the company, a full-time employee could be the right choice. When you hire full-time staff, you have the most control but the least flexibility. If you’re facing unpredictable growth or want to scale up and down flexibly, you may want to consider other hiring options.
The Pros and Cons of Contracting
Contract work is increasingly popular––according to Upwork there are 64 million freelancers in the US. Contractors are especially popular with businesses that need specialized skills without the commitment of a full-time hire.
But, like any hiring option, contracting comes with its own set of pros and cons.
Pros:
- Cost-effective. You typically hire contractors for a specific project or time frame, which is more cost-effective than a full-time employee––you’re not paying for benefits, taxes, or other employee-related expenses.
- Flexibility. You can scale your workforce up or down based on project needs, without long-term commitment.
- Specialized expertise. Contractors usually specialize in a particular area, allowing you to access skills that might be too niche to justify a full-time hire.
- Quick onboarding. You can provide less onboarding and training since you hire contractors for their specific skillset and can hit the ground running.
- Less management overhead. Since contractors are self-managed and focused on delivering results, they require less day-to-day oversight.
Cons:
- Lack of long-term commitment. Contractors are typically focused on the project at hand and may not be as invested in your company’s long-term success.
- Limited availability. Contractors might not be available on demand, especially if they’re juggling multiple clients.
- Integration challenges: Contractors won’t fully integrate into your team, which can lead to communication issues or a lack of cohesion on collaborative projects.
The bottom line:
Contracting is a great choice if your business has fluctuating needs, short-term projects, or requires specialized skills that aren’t needed year-round. Just be sure to clearly define expectations and project scope to get the most out of your contract workers.
The Pros and Cons of Outsourcing
Delegating tedious or repetitive tasks to third-party providers could help you save money and time––you can reinvest your saved time into more high-value strategy-oriented tasks.
But like any approach, outsourcing has its pros and cons.
Pros:
- Cost savings. Outsourcing lowers overhead costs––you’re not responsible for salaries, benefits, or infrastructure for supporting in-house staff.
- Focus on core business. Your team can focus on more high-value tasks that deliver real value for your business.
- Access to expertise. Outsourcing providers often bring a high level of expertise, tech, and processes that may be costly or impractical to develop in-house.
- Scalability. Ramp up quickly during peak times or scale down during slower periods.
- Global talent pool. Access a global talent pool, with services around the clock and in multiple languages.
- Balanced approach. Outsourcing gives you the flexibility of a contractor with greater integration into your team and overall commitment.
Cons:
- Potential quality issues. The quality of work will vary depending on the provider––it’s sometimes challenging to maintain consistent standards.
- Security risks. Outsourcing, particularly when it involves sensitive data, can introduce security risks if the provider’s safeguards are inadequate.
- Cultural and language barriers. If you outsource to a provider in another country, cultural differences and language barriers may complicate communication.
The bottom line
Outsourcing is helpful if you want to cut costs and focus on more valuable business activities.
But outsourcing is not without its challenges––lack of control and potential quality issues are significant considerations, especially if the outsourced work is critical to your business.
In-House Assistant Vs. Contract Assistant Vs. Virtual Assistant
More than half of the business executives we surveyed said that admin work is their top productivity buster. But finding the right support for your necessary admin work isn’t always easy.
Most leaders find themselves choosing between an in-house assistant, contractor, or virtual assistant. The right choice depends on your unique business structure, needs, and personal preferences.
Let’s look at the key differences between outsourcing, contracting, and full-time hiring:
- In-house assistant: A traditional role where the assistant is physically present in your office. They handle a wide range of tasks, from admin duties to customer service and receptionist roles. An in-house assistant is fully integrated into your team and company culture.
- Contract assistant: A contract assistant is hired for specific tasks or projects, often on a short-term basis. They bring specialized skills and flexibility, making them ideal for businesses that need targeted support without the commitment of a full-time role.
- Virtual assistant: VAs work remotely, often handling administrative tasks, scheduling, and communications. VAs offer ultimate flexibility and cost savings, as you can hire them for just the hours you need. While they may not be physically present, tech makes it easy to stay connected and collaborate effectively. Typically, VAs are hired for long-term support but you have the flexibility to turn the service up and down based on need.
When to Choose an In-House Assistant
An in-house assistant is a great choice when your business requirements include in-office tasks like greeting clients, answering calls, and managing front-desk activities. Your assistant essentially acts as on-site coverage – managing office operations or handling confidential documents that can’t leave the premises.
When to Choose a Contract Assistant
A contract assistant is the ideal choice when you need specialized support on a project-by-project basis. For example, contract assistants are helpful for organizing company events, covering for an assistant on leave, or managing temporary surges in workload.
Since they’re hired for a specific period or task, contract assistants are highly focused, bringing in the necessary skills without the long-term commitment of a full-time hire.
Learn more: Tasks & duties you can outsource
When to Choose a Virtual Assistant Service
A managed virtual assistant service offers unmatched flexibility and convenience, making it a compelling option for businesses that need reliable support.
One of the benefits of using a virtual assistant or virtual executive assistant is the ability to scale your support up or down based on your current needs. You don’t need to worry about turnover, as managed virtual assistant services handle all aspects of hiring and training, ensuring you always have skilled professionals ready to assist.
Another benefit is the access to external expertise. Virtual assistants often come with a diverse skill set and can bring valuable insights and experience from working with various industries. You can tap into high-level skills without having to invest in extensive training or onboarding.
Because many VA services are fractional, you can utilize multiple assistants, working concurrently, on different tasks. A virtual assistant service is ideal when you need flexible, cost-effective support that can adapt to your business's changing needs. Whether it's managing day-to-day tasks, handling administrative duties, or providing specialized expertise, virtual assistants offer a seamless solution that allows you to focus on what matters most —growing your business.
Read more: How to Hire the Best Virtual Assistant Service for Your Business
Full Time vs. Contract vs. Prialto
Prialto offers a fractional virtual assistant service, broken into 55 hour a month chunks called Prialto Units. Every Prialto Unit comes, not just with a dedicated PA, but with a whole internal team—including backup support, leadership, and a dedicated Engagement Manager. You can scale the number of Prialto Units you need up and down with your business needs.
One of the biggest concerns leaders have about working with a virtual assistant service is the management requirements. Is it just one more person to manage and train? That’s why Prialto offers a fully managed service. All our assistants work in-house at Prialto so we can offer them benefits, training, development, equipment and resources.
We’re an outsourced solution that gives you the best of both worlds. You get access to highly trained professionals, integrated into your systems, but you don’t have to worry about all the overhead associated with a full-time hire.
We take care of all the details so you can focus on doing high-impact work.
Ready to find out how many hours a week you could win back? Connect with our team of productivity experts to explore the best support options for your business.