Benefits of employer getting contractors instead of employees?

Question

What does a employer have to pay a employee that they dont have to pay contractor?

What are the savings, for example if im a contractor earning $30 an hour is that like earning $25 an hour if i were a employee in considering a contractor does not have sick days and is not payed superanuation, what else am i not payed?

As a contractor if i am injured at work or have accident driving to work will the company insurance cover me?

By the way i live in Australia.

Answer 1

It helps with the management of short term increases in workload. If you have a busy 2 months coming up you might hire a contractor instead of full time because if you hire full time you might have to get rid of them when the busy period is over.

You do not necessarily have to pay benefits and you do not need to go through as much paperwork as you would for a full time hire.

Answer 2

You can hire them when you need them, release them when you don't...so a way to handle the spikes of work......You can hire skills you do not have on staff, and don't have to train, nor pay benefits.  Most companies do not have all skills on staff, nor should they.  Contractors are specialized in what they do, they do it over and over across companies, and government entities...they are specialists.  Putting a bid out you can review offers, assess skills and get best price for work needed.  Also, large contracts may be given across government agencies to get a better price (via GSA),  It's cheaper than hiring full time employees.