Regardless of what industry sector you work in, there are many advantages to be gained from working on a temporary/contract basis. Let’s review some of the main benefits of contracting and discuss a few of the disadvantages. For a more in-depth discussion of your personal circumstances, please feel free to contact us!
This is often the biggest motivator for individuals taking on contract work. An average contractor pay rate can easily be double that of a full time employee carrying out a similar role. Contractors generally command these much higher rates due to their specialist skill-set and the flexible nature of the relationship that they have with the client. Put simply, a relatively short-term relationship that can be terminated at short notice results in higher remuneration as a way of compensating for this relative job insecurity.
A contractor is, in effect, their own boss; they have the ability to be far more independent than permanent employees and will generally have greater freedom to choose when they work, where they work, and for how long.
Due to the short-term nature of contract work, contractors will naturally work in a variety of different contract roles for many different clients. This will help build a unique range of skills and experiences not available to permanent employees.
Contractors also have the ability to build an impressive CV and establish an extensive list of reference contacts. Via networking, a good contractor will become known within their own field for their expertise and may even find that they become sought-after by clients and do not have to “sell” themselves in the same way that a less experienced contractor would have to.
A Few Minor Disadvantages (but don’t panic!)
Contractors are responsible for finding their own work and making sure that the money keeps coming in. This can be a little bit daunting for someone coming from the world of permanent employment where traditionally they haven’t had to worry about these sorts of things on a day-to-day basis.
However, times are changing; the job market as a whole is much more flexible than it used to be and even permanent employees need to appreciate that a “job for life” is largely a thing of the past.
Contractors have more responsibility for negotiating their own payment terms and working conditions, which is something that they may not be confident about doing in the early days.
Contractors are responsible for managing their own finances. This can seem daunting at first, but Liberty Bishop can help guide them through this potential minefield. With 18 years industry experience, Liberty Bishop provide a full range of payroll and accountancy solutions, all of which will be able to reduce the contractors stress levels and increase their retention levels!
Liberty Bishop are a specialist payroll and accountancy provider for contract and freelance workers. We provide a range of domestic (UK) and international solutions…do not hesitate to contact us to discuss your circumstances and how we can help.