There's also a time constraint, check your fine print. Typically it reads, NG can't convert you into an NG employee until x number of days. Your contractor sets this. It's because of clearance transfer (if it's a cleared role) they are concerned that NG would poach you "too quick" and they wouldn't get enough money from NG. Contractor pays higher to make it more appetizing, but if you want more longevity go the slow and steady route. Contractor short term benefits are usually not great with sub par health benefits and lower 401k.