When should I hire an employee instead of a contractor?

Hire an employee when the role is ongoing and core to the business, requires deep company knowledge or long-term relationship-building, involves access to sensitive data requiring stronger control, or when your jurisdiction's laws effectively require it based on the actual working relationship. Hire a contractor when the work is project-based or time-limited, requires specialist skills you don't need permanently, or when flexibility and speed of onboarding are the priority.