About Why you should take a Contract over Permanent work
Why you should take a Contract over Permanent work
Contractors enjoy a greater earning power compared to permanent staff but there are also pros and cons you need to consider if you want to move from a permie job to contracting.
Pros of Contracting
Contracting pays more than the permanent market, particularly for the premium skills in demand.
More tax savings.
You are your own boss.
Greater experience with wide variety of projects and programmes.
You become a problem solver.
Opportunities in building your own network
More flexibility and freedom (able to change jobs quickly).
Longer holiday breaks between contracts.
Flexible working hours.
Working from home/ remote.
Constant changing environment.
personal projects not governed by an employer.
Potentially less stress.
You're responsible for your own learning.
Lack of corporate politics.
Building your business network.
Cons of Contracting
Fear/ Job security (short notice period).
The hassle of administration (maintaining your account).
You are responsible for you Tax.
No benefits (sick pay).
The demand for contract workers continues to rise as companies look for skills and experienced individuals to fill their critical demands.
Key reasons why you should contract over a permie job.
Failed bonus promises, promotions and unpaid overtime.
Lack of motivation, challenges and career progestin.
Lack of training and employers not investing on employees.
More taxes on your pay.
No flexibility in working hours.
Initial transition or the 'jump' is the hardest bit, particularly if you have debt. Few points to consider before you dive in from permie to contracting.
Master your core skills. For an example, if you are a Network Engineer, don’t try to learn all possible available networking skill but focus on 5-6 technologies and master them and that should be your KSP (Key Selling Point).
Secure a contract before you give the notice to you permie employer. This can be challenging as permie notice periods can be weeks and sometimes up to 3 months. Having an offer on hand gives you the confident to take that first leap.
If you are giving notice and thinking of finding a contract after resigning your permie job, make sure you are finically secure for at least 12 months as this gives much confident in your contract hunt.
Make sure there is a demand for your set of skills. Search the job boards like Pro Contract Jobs to see if there are any contracts for your skillset out there.
Read all Pro Contract Jobs Pro Guides and A-Z Guides in contracting.
Certify yourself before you take the leap (look for our Pro Courses section)
If you are taking a leap from permie to contracting, look for at least 6 months or 12 months contract.
Forget about the benefits, you are not going to get any benefits as your permie job. You need to take care of these and there are thousands of insurance companies and pension providers with many creative products to suit your needs
Don’t expect any career training or babysitting when you take your new contract. You should be able to hit the ground running from day 1.
It can be less free time with contracting as you value free time over money. (no more 4 weeks breaks during contracts).
Believe in your skills and master them/ polish them.
You may need to take more risks than your permanent role (learn about risk management strategies).
You are going to be involved with less meetings, chit chatting and more focus on delivery.
You need to speed up delivering tasks than in your last permie role.
You need to have great relationships with powerful people throughout the organisation, suppliers, stakeholders, third parties and vendors.
Have an entrepreneur mindset rather than the permie thinking.