Re:asd (Score 2)

I've been both and I've managed both and I prefer employees over contractors. It's as difficult finding good contractors as it is employees. Good employees are expensive, but not nearly as expensive as contractors.

Depending on how you structure the company, employees are certainly more loyal, especially if there's stock involved. They'll hang their asses on the line to get the job done, whereas contractors typically -- note "typically" -- have a laissez faire attitude towards projects. This is more a market problem for employers than anything else; contractors typically come from firms that can have a backlog of opportunities. If the contractor is faced with a difficult project, the contractor can usually bow out for an easier one. An employee can typically find jobs quickly in the market, certainly, but there's always the hassle of having to find the job (unless he/she wants to become a contractor).

I've found that a good working environment with employees is better than any group of contractors...