What Is the Difference Between a Contract Employee and a Permanent Employee? The main difference between a contract employee and a permanent employee is the duration and nature of their employment. A contract employee, as the name suggests, is hired for a specific period or project, while a permanent employee is hired to fill a long-term need. Other key differences include: 1. Employment Period: A contract employee is hired for a specific period, usually the duration of a project or for a fixed term. In contrast, a permanent employee is hired with no fixed end date. 2. Job Security: Permanent employees generally have more job security than contract employees and can expect ongoing employment provided they meet performance goals and continue to fill a business need. A contract employees' job will end once the contract period ends. 3. Benefits: Permanent employees typically receive more comprehensive benefits than contract employees, including health insurance, paid time off, retirement plans, and other perks. 4. Role and Responsibility: Contract employees are often hired for specific roles or projects, and their job responsibilities may be more limited in scope. Whether you're interested in contract or permanent employment, redShift can help! Contact us today to learn more about our contract and permanent placement staffing services.