The days of seeing contract work as a back up to full-time employment are long gone. With fantastic earning potential, exciting opportunities and the ability to exercise freedom and choice over your lifestyle, contracting can provide a more direct route to where your passions truly lie….Umbrella Exchange takes a look at reasons to fall in love with contracting this Valentine’s Day.
- Earning Potential: Contractors are usually paid for every hour that they work. This means that their day rates are often much higher than employees in similar positions. Additionally, depending on your payment structure, contractors’ tax status can also enable them to take home significantly more net earnings than permanent workers. Limited company contractors can also claim travel and subsistence expenses and offset these against their tax bill.
- Personalise your benefits: Although the lack of employment benefits is often seen as a negative for contractors, your contracted hourly rate should reflect the fact that you have to purchase your own benefits. This gives you the freedom to personalise your benefits according to what you need to prioritise, instead of a generic ‘package’ offered by a company. For example, your pay may not include annual leave, but if you work a nine or ten month contract on a higher rate, you could choose to take extended time off before entering into a new one. If you’d like help with your back office plus the security of some benefits, you can always choose to contract under an umbrella company.
- Flexibility & Choice: The greater flexibility offered by contracting allows many people to achieve a better work/life balance. Contractors can choose how much they work and which contracts they accept. They also exercise a greater degree of control over how they structure their working day. This allows contractors to prioritise what’s important in their lives, combining work and family life with learning new skills or pursuing personal interests. For many people, this is key to feeling a greater sense of job satisfaction and overall fulfillment.
- Bolster your resume and business network: With new technologies such as AI and blockchain creating exciting new business opportunities, contractors can gain new skills and knowledge on their assignments that will enhance their resume. The chance to work with cutting-edge technology on innovative projects presents contractors with the opportunity to develop niche skills that few other people possess. There’s also the opportunity to develop new contacts who could increase you business network and your endorsement potential.
- Opportunities to travel and/or work from home: As the demand for contractors continues to grow, international competition for top talent means that there are increasing opportunities for contractors to travel all over the world. This can result in exciting opportunities for those who are able to take advantage of them. Advancements in communications technology also mean that many contractors are able to work remotely from home. Contracting also offers an alternative to relocation if jobs run dry in your local area.
- Overcome being “overqualified:” Many people with excellent qualifications and experience find themselves unable to find permanent positions as companies aren’t able to afford them long term. This can lead to many candidates being told that they’re overqualified. They must then choose between being out of work or accepting a position that pays less than they’re worth. Companies are more willing to hire someone with, expertise or niche skills on a contract basis as they can upskill or downscale according to demand. For these reasons, many companies are building access to a flexible workforce into their growth strategies.
- Variety: For many people, the 9-5-office routine can become monotonous and uninspiring. Contractors, on the other hand, are able to choose their clients and assignments and can regularly change them. Meeting new people, learning new processes and working in different environments can present contractors with variety, inspiration and infinite new possibilities.
- ‘No risk’ trial opportunity: As well as the opportunity to try a variety of new companies, roles and industries, contractors can test the market for their skills without committing to a permanent job. If it doesn't work out, they can move on. Contractors often progress through their career at an accelerated rate, purely because of their exposure to a range of work environments, responsibilities and projects.
- No office politics: The workplace can be a competitive environment where office politics can prove both distracting and demoralising. Contracting is focused on a person’s expertise and skills, rather than their ability to charm the right people or crush the opposition. This means that contractors can focus on what they do best without being distracted by the pressures of chasing a promotion. The opportunity to manage themselves and their careers allows many contractors to feel a sense of control that results in less stress.
- The way of the future: While some see contracting as unpredictable and risky compared to the security of a monthly wage packet, there’s little certainty in todays ‘permanent’ employment market. Companies will regularly downsize in order to remain competitive, or replace outmoded skills in their workforce. By 2040, it’s estimated that traditional employment will no longer be the norm, with over half the workforce engaged in temporary, freelance or contract roles.
- A foot in the door: If you decide that you want a permanent position, contracting could lead to your dream job. These days, many people will work a variety of temporary and permanent positions during their careers. Instead of taking a job that doesn’t interest you or utilise your skills, contracting can help you build your knowledge and a track record in a certain area, while also ensuring you’re properly compensated. Studies show that roughly a third of contractors are offered permanent positions. This is because companies are far more likely to invest in someone who demonstrates a proven ability to help them achieve their goals.
