When you accept contract work, this means that you are going to be in the position you’re in for a fixed amount of time, be it three months, six months or even a year. A lot of jobs offer work on a contractual basis, even athletes sign contracts allowing them to stay with a team for a certain number of years. But the glamorous world of sports is far different from the kind of labor that we do.
Most of the time, when we look for a job, we tend to search for jobs that are permanent. Or in other words, we want to be rest assured of stability when it comes to our income.
Also, with work where you’re hired as a regular employee, your income taxes and pension plan contributions are deducted automatically from your pay by your employer. None of these things are available to you when you do contract work. In other words, you have to fend for yourself should you choose the contractual employee route.
Whichever way you look at it, there will be positives and negatives for accepting contract work. Below, we break down why getting a job on a contract basis is a good move and why it’s not.
List of Pros of Contract Work
1. You Can Impress An Employer Which Can Lead To Better Opportunities.
Hard work is the key to succeeding in contract work. When an employer sees that they can trust you with several tasks, they might just want to bring you on board for a full-time job. After all, once you grab hold of a good worker, you try your best to hold on to that employee for as long possible.
Every company deserves good workers, but sometimes they can be hard to find. So when a company chooses to give you a shot, don’t think in temporary terms – that you’re just in this for a number of months. Instead of thinking in the negative, go for something more positive. Put everything you’ve got into your work and all of your hard work will surely pay off.
Employees always notice good workers and they want to hang on to them. So even if the gig you signed up for lasts for just a while, try and make the most out of it. This doesn’t mean that any temporary job you sign up for will automatically lead to full-time promotion. But it’s important to show that you care for your job because you just never know who’s watching.
Yes, you may bid the place of your employment in a few months’ time, but making an impression will surely put you in the good books of your current employer. Who knows? Maybe one day you’ll be working for someone else but a call will come from a previous employer offering better opportunities
2. You Do Work And Then You Head Home.
When performing contractual work, you’re only meant to be “at work” for the day until such a time when your contract ends. This means that other office-related things like attending meetings at ungodly hours aren’t part of your routine. You’re tasked with doing a certain thing and that’s what you’ll focus on until you’re no longer contractually obliged to do so.
What makes this setup nice is that when the work shift is over, all you have to do is get home, spend time with your family and do the things that you love.
3. You Acquire Skills a Whole Lot Faster.
Being involved in contract work often means dabbling in various jobs across many industries. Doing so builds up your skills as quickly as possible. When you’re exposes to a variety of projects and work environments, picking up new skills will be so much easier.
4. You Don’t Have To Be Involved In Office Politics.
Every office seems to operate like they’re a government agency. As a contact worker, you need not be bothered by such things. There’s no reason for you to get highly involved in office politics because you’re going elsewhere in a couple of weeks, months or years.
5. You Can Earn Higher Wages.
When you’re a contract worker, there’s a chance you can get a higher pay because your job is not secure. Generally, contract workers receive about 30 to 100% higher gross pay than those who have permanent work. Overtime pay is also provided to contract workers which can increase their take home pay.
List of Cons of Contract Work
1. You Don’t Get Paid When You Don’t Work.
As a regular worker, you are entitled to benefits offered by your company – vacation leaves, sick leaves and such. When you’re involved in a contractual situation and can’t work for a day or even days, that means you get no pay. Absolutely nothing.
This is why the life of a contract worker is always tricky. A next job after the current one isn’t even a guarantee. So there will be days when contractors do suffer from not having any income at all.
2. You Have To Fend For Yourself In Terms Of Benefits.
As a contract worker, you don’t have an employer who will gladly take off a certain amount from your paycheck for government contributions and such. Well, you do have an employer but they are more about writing your check and nothing more. So, basically you have to do these things on your own.
3. You Don’t Have Job Security.
Just like coaching jobs in sporting teams, you can get cut at any time. Take Carlo Ancelotti at Real Madrid for example. While that team is used to parting ways with coaches who don’t produce trophies in a given year, Ancelotti still had a year left on his three-year contract when the football club decided to fire him.
It was a strange gesture given that he was responsible for delivering La Decima and taking a badly injured team to the semifinals of the Champions League. Then again, that is the nature of contracts: if you don’t deliver on what is asked of you, your employer will gladly show you the door.