Contracting vs. Permanent: The Real Cost Comparison

Many companies assume contracting is more expensive. But when you do the maths, that assumption often falls apart.

Let’s break it down.

1. Salary vs. Total Cost of Employment
Permanent salaries come with hidden extras: employer PRSI, pension contributions, holidays, sick days, onboarding costs, equipment, and more. Contractors come with a daily rate. Nothing else. No long-term liabilities.

2. Paying for Output, Not Presence
With contractors, you’re typically paying for outcomes. They’re hired for a purpose, deliver X, build Y, migrate Z. There’s less risk of underperformance dragging on quietly over time.

3. Flexibility Avoids Future Cost
If business priorities shift, you can wind down a contract without exit packages or lengthy notice periods. That agility can save serious cost down the line.

4. Opportunity Cost of Delay
Permanent hires take months. Every week without the right person in place slows delivery and increases internal pressure. Contractors can be live in days, getting work done now - not six weeks from now.

So, is contracting more expensive? Not when you zoom out. In fact, when speed, specialism, and risk management matter, contracting often delivers more for less.

Techforce Talent helps clients assess real cost vs. value in every hiring decision. Let’s work out what’s right for you.