7 Reasons to Choose Contracting over Permanent Work
There’s no doubt that a permanent job with an organisation has its merits. Job security, financial stability, and a possible pension are among many perks permanent employees receive. Some people thrive in a permanent positions – such as people with young children, those actively involved in their community and others that require security. Many will also say it’s not easy: office politics, boredom and lower earning potential are some of the drawbacks.
There is an alternative to permanent work
Enter contracting. Contractors are self-employed professionals that take on short-term assignments or roles that range from one week to up to two years. Some find their own jobs while others use a recruitment agency. Unlike permanent employment, there can some challenges, however contracting offers benefits found nowhere else.
Contracting offers freedom
Many skilled professionals choose contracting so they can plan their careers on their terms, according to their personal goals.
Here’s a short list of some of the many benefits contracting can bring you:
1. Contracting offers flexibility
Want to work from five in the morning to ten? Contracting gives you that option. Prefer to split your work between morning and night? Contracting has you covered.
Taking on short-term assignments lets you work according to deadlines you set with your clients. Contracting also gives you the freedom to take holidays whenever you wish to do so.
2. More clients can offer increased security
When you have a permanent job, you have one client: the organisation that hired you. If that business goes under, you’re out of a job. You may get redundancy pay, but that won’t last forever, and at some point you’ll have to get out there to find a new job.
Contracting, on the other hand, lets you have multiple clients. If one drops off, you still have others to depend on until you replace that client. You’re not tied to the same employer for your livelihood, and will have the confidence to know that money will always be coming in.
Contracting lets you choose clients
Not all clients are equal, and some may draw upon more of your resources than others. Contracting gives you the freedom to pick the best clients and create relationships built on mutual success.
3. More money
Aside from gifts or bonuses for a job well done, most contractors do not receive corporate benefits such as discounts and gym memberships.
In many cases, what you may get instead is a higher wage that you can then redirect towards paying for your own investments and retirement plan. Contracting also gives you more opportunities to expand your skill set, empowering you to command a higher rate for the increased value you can provide.
4. Less office politics
Permanent employees often spend more time at work than at home, and the work environment can be affected as a result of all the hours spent on the job.
From office cliques to micro-aggression by management, office politics is something that seems inescapable. While contracting may still involve some office politics, the scale is much less because less time is spent on the job and it’s mostly on a temporary basis.
In that sense, contracting is not like a “marriage” – it’s more like a serious relationship where the benefits must continue to make it work. That dynamic, in many cases, can form the basis for a symbiotic relationship that provides multiple benefits for both sides that can last a long time.
5. Freedom to work in different locations
Many contractors work from home, and “home” in some cases can be anywhere in the world. That’s a privilege given to contractors by clients that may be in different time zones across the planet.
One of the keys to making it work is to upgrade your skills continuously, so the drawbacks of your remote location are compensated by the value you provide to the business.
6. More experience across diverse industries
For many tasks in life, there are multiple ways to get them done. Having many clients across various sectors gives you valuable exposure to varying methodologies that can upgrade your skills. You can then take that knowledge and bring it to other clients for better results in the work you perform for them.
7. More challenges
We’re not going to mislead you in saying that contracting is easy. It can be very challenging at times, requiring a mix of skills that go far beyond your job. These include cultivating discipline, developing perseverance, and withstanding the highs and lows that come from an ever-changing marketplace.
You can take that stress and view it as an opportunity to grow and get stronger on a mental and emotional level. Contracting can and will give you the chance to grow and reach your potential in multiple ways.
Do you have what it takes to be a contractor?
With the multiple benefits it provides, contracting is increasingly attracting the best and brightest from every industry.
As mentioned before, it does have its challenges and requires perseverance, discipline and mental strength.
Here is a checklist that can help you ensure you are making the right decision:
|I am committed to my career and am willing to go above and beyond a 9-5 schedule||✓|
|I do not require a manager to constantly look over my shoulder to make sure I get my work done||✓|
|Office politics drags me down||✓|
|I want to choose my hours||✓|
|I have the discipline required to meet deadlines||✓|
|I enjoy working with different companies in diverse environments||✓|
|I am capable of planning my retirement||✓|
|I want to direct my career and make a unique impact on the world||✓|
Are you ready to start contracting? Let Cool Company show you how!
So far, we’ve gone over many contracting benefits such as higher earning potential, flexibility, freedom to work from anywhere, and a better work/life balance.
There’s no doubt that permanent employment offers some benefits as well. Along with receiving holiday pay and insurance, permanent employees don’t have to worry about compliance issues such as insurance and employment protection.
Did you know that you can have the best of both worlds? Cool Company can take care of your compliance issues so you have the freedom to focus on your career. And it’s easier to get started than ever before!