As a UK based tech start up working on a social app, what are the pros and cons of hiring contractors on a full time basis to build the app, against hiring the same people as employees?
Let me expand on the question to try and get some better quality answers. I don't just want to know about the financial difference (I think it's obvious hiring staff would be cheaper than contractors, as contractors are going to want somewhere near their day rate even on a longer term cotract, maybe upwards of £500 a day (£130,000/year). You'd be able to hire a comparable member of staff for around £50,000.
I'm more interested in things like atmosphere, buzz, workers rights, happiness etc. which I see as essential in creating a good product, and management, paperwork, hoops to jump through, creating a sustainable product etc.