A "contract" (noun) generally refers to the legal document which is signed by the employee. It may also involve other kind of agreements, e.g, marriage o renting a place or a vehicle. "Hire" is a verb and involves the action of acquiring a new employee to your company. You can also "hire" services from a third-party company.

Contract is an agreement agreed by both parties or all parties involved. Hire is to recruit someone to do the work Note: I am not sure whether you intend to ask (temp)“contractor” Vs (permanent) hire. If so then my above response may be incorrect. Sorry. Thanks.

To contract someone might be temporary, where as if you hire someone it is usually for long term..