Depending on the work this can be good or bad.
When you have employees you also get flexibility in scheduling them. A contractor is expected to have other jobs and sometimes cannot get to your critical need right now.
A contractor can sometimes give you a better deal because of those other customers who are willing to pay extra for last minute service.
It's funny, though; a week or so ago I saw an article posted here by someone who was paid over $20k for a static web page that took him less than a day to build. After he showed up for his first day of work, he went on a 7-week odyssey doing basically nothing because the people who owed him designs and assets weren't ready yet.