If they do, it is usually insufficient. . . . allows access to greater resources. . . . They usually do not have to worry about a company ending their contract abruptly because contractors by design are the first to go.
Companies usually offer a wider range of long term benefits to their employees.
Contracting firms sometimes carry health insurance and other benefits, but in general do not carry the complete line of long term benefits. While there is an up front fee for conducting a search and hiring an employee through a recruiting firm, it does not compare to the overall long term expense of maintaining a staff of contract employees. A certain percentage of your employees become long term employees, which over time create long term stability and continuity. Usually very beneficial on special one time projects. This reduces the need for payroll paperwork and tax filings associated with normal payroll functions.