Should I Consider Contract Roles over Permanent Positions?22 Aug, 20224 minutes
In today's dynamic job market, the distinction between contract roles and permanent position...
In today's dynamic job market, the distinction between contract roles and permanent positions has blurred. It's crucial to recognize that both types of employment are equally legitimate, with the choice often driven by practicality and aspirations. Let's explore the benefits and considerations when considering contract work.
Contract work has been a longstanding component of economic life, predating the prevalence of permanent employment during the 19th and 20th centuries. The rapidly evolving world economy in the past few decades has reshaped the employment landscape, making fixed-term contracts an increasingly attractive alternative.
Tech industry employers, in particular, embrace contract work due to their project-driven growth strategies. Many high-profile projects rely on specialized teams that transition to new challenges once their current work is complete. Hiring specialists on a contract basis aligns perfectly with this model.
Why You Should Consider Contract Work
Variety: Contract roles typically last up to a year, offering an abundance of diverse experiences. Within a short timeframe, you can accumulate valuable expertise, compressing a decade's worth of career development into one or two intensive contract assignments. This exposure to different companies and sectors can be unparalleled.
Earning Potential: As a contractor, you can command higher compensation for your specialized skills. Employers understand the value of these skills and are willing to pay a premium since the commitment is not long-term.
Flexibility: Contract work offers flexibility on multiple fronts. If a particular project is less rewarding than expected, you know you'll move on to new opportunities soon. Additionally, building a network of contacts during your contracts enhances your chances of securing future work. This network can prove invaluable if you decide to pursue a permanent role later.
The Negatives of Contract Work
Job Security: Contract work lacks the stability associated with permanent positions. Upon completing a contract, you must search for the next opportunity without long-term certainty.
Employee Benefits: Contractors do not enjoy perks such as paid vacations or sick leave. It's crucial to account for these factors when pricing your services to ensure you can afford time off when needed.
Career Path: Without a defined career plan, following a specific trajectory can be challenging. Your job opportunities may depend on what contracts come your way. While the tech industry currently offers promising prospects for skilled contract work, it may not always be the case.
Financial Status: Contractors may encounter difficulties when seeking credit or loans due to their employment status. Some lenders perceive permanent employment as a more secure income source. However, as your freelance career flourishes, lenders may become more receptive to your requests.
Remember, when choosing between contract and permanent roles, it's essential to weigh the pros and cons based on your preferences and career objectives.
How to Secure a Contract Role
At Coltech, we work with exceptional clients to provide both permanent and contract tech teams across Europe and the United States. If you’re considering a career move or want to venture into contracting, get in touch to see what current opportunities we have available:
London/Europe Office: (+44) 20 3307 6850
US Office: (+1) 512 717 7490