Baker Computer and Data LLC

Company view: Contractor vs Employee - Pros and Cons

Type	Pro/Con	Why
Employee	Pro	can work him lots of hours
		dedicated to the company (stocks, team member, benefits)
		focused on keeping the lights on with the work, long-term view, more realistic in features
	Con	can quit as quickly as a contractor taking more company info with him
		apathy and burn-out can set in
		tied up by internal politics
		harder to get rid of
Contractor	Pro	eagar to work (gets paid for each hour)
		usually has both companies resources supporting him
		wants to complete task quickly (normally)
		easy to get and to get rid of
	Con	gets paid a lot more
		is not company focused (won't work for free)
		shorter term with company, usually lacks company legacy knowledge
		unless documented, gained knowledge walks out with the contractor (but that is true with employees, maybe even more so because employee turnover is usually ignored)

Individual view: Contractor vs Employee - Pros and Cons

Type	Pro/Con	Why
Employee	Pro	Get benefits: medial, tuition, vacaation, retirement/401k
		Get perks: training, bonuses, Christmas party, stock options
		Promotions, pay increases, extra vacation as time accrues
	Con	If salaried, you loose money the more you work each week
		Less ability to say "no" as you are performance rewarded
		Less flexibilty with benefits; they are part of your package whether you use them or not
Contractor	Pro	You get paid for what you work
		You spend your pay on the benefits you want
		You're your own boss; you are running your own company - entrepreneur
		You can change jobs easily
	Con	Easy to get rid of
		Not always accepted within the team
		Have to run your business (paperwork for billing and taxes, find leads then jobs)
		Must manage your money at a different level: taxes, insurance, etc
		Position is more susceptible to economy ups and downs
		Must keep a technical edge (but I would say that is true for anyone)

I would use the following analogy, though it is not incriminating anyone politically regardless of they position they hold.

An employee is more in a sphere of socialism. He is told (normally) when to work and what to work on. He has to ask for vacation, is given benefits that he may or may not like or need, and may not even meet his needs. He has a limited influence on how the company will use him. If he is laid off, he looses all he had.

A business owner (consultant/contractor) is in a sphere of capitalism via private enterprise. He directs his affairs and seeks new business opportunities. He suffers loss or enjoys rewards depending on his ability, salesmanship, and economy state. He steers his ship amidst the storms.