Does contracting offer women better prospects than employment?

Earlier this year a government report on the gender pay-gap revealed that eight out of ten companies in the UK paid men more than women. The figures clearly indicate that, despite socially acceptable ideas about gender equality, when it comes to the world of work, outdated attitudes appear to prevail. The report comes at a time when national statistics report the highest proportion of women in paid work, with improved benefits and educational opportunities making this possible. However, some might argue that enabling women to work with the expectation that they work for less than men is the ultimate gender-based devaluing. Here at Umbrella Exchange, we consider whether the contracting industry holds better overall prospects for women.

First of all, it’s difficult to say whether the contracting sector industry reflects the general gender pay-gap because of a lack of available contractor-specific data. Contractors are only counted as employees if they personally perform work for an organisation, or if they belong to a service company such as an agency or umbrella company. However, studies carried out by various independent work bodies suggest that:

• The gender pay-gap is narrower when it comes to contracting. Generally speaking, it’s more likely that contractors will be paid in accordance with their experience, skills and expertise when negotiating rates for a project.

• Although a gender pay-gap was still found to exist in traditionally male-dominated industries such as construction, some marketing and arts-based sectors reported that women contractors earned more than men, with IT proving fairly neutral.

This appears to indicate that the contracting sector is a more level playing field when it comes to payment.

Are contractors entitled to the free childcare allowance?

A recent study commissioned by IPSE found that 40% of the 1.88 million freelancers working in the UK are women; 270,000 of who are mothers. Although social attitudes to gender roles are changing, it’s still generally women who take on the primary caregiver role, with one in ten women giving up work to look after young children, compared to one in one hundred men. The rise in the number of women re-entering the labour force has directly coincided with the government’s introduction of free childcare, which rose from 15 hours per week in 2011 to 30 hours in 2018. Although contractors aren’t entitled to statutory employment benefits unless they work through an umbrella company, the good news is that free childcare applies to contractors who earn more than the equivalent of 16 hours at the national living wage per week, but less than £100,000 per year, with no requirement to work a certain amount of weekly hours. This makes it feasible for professional women to return to work on a part-time basis, as they’re able to command good hourly rates of pay while also staying well within the threshold for free childcare.

(For more information about the 30-hour offer and other child benefits for workers, visit the government’s Childcare Choices website where you can also apply.)

Does contracting offer women greater work-life flexibility?

Although improved childcare policies, social attitudes and access to education have increased women’s opportunities in the workplace, the reality is that businesses are often inflexible when it comes to accommodating personal commitments. After years spent gaining professional qualifications, many women want to continue their careers after having children, but find that their employers won’t allow part-time or flexible working hours. As well as taking on the primary responsibility for childcare, research shows that women place greater emphasis on work-life flexibility and the need to spend time on non-work-related matters of importance. Contracting undoubtedly offers women more options in this respect, such as the following:

• Contractors can choose to work as little or as much as they want on a project-by-project basis.

• As independent workers, contractors exercise greater control over their working practice, allowing them to choose how, when and from where they supply their services.

• Contractors have greater influence over their rates which are usually significantly higher than those of normal employees.

• As businesses seek to secure short-term access to key skills, certain contractors are in high demand right now, making contracting an excellent option for women who want to prioritise work-life flexibility while maximising their earning potential.