Contract vs Full-Time Employees: How to Make the Right Decision

The right recruiter can absolutely help ease this burden, however, making this requirement far less daunting. Skilled teams like the one at BridgeView are adept at connecting IT professionals with jobs that match their skills, and align with long-term goals. So, if you’ve read up on the pros and cons and still feel more like a Jack than a Jane, rest assured there’s a whole frontier of exciting contract opportunities awaiting you. As it turns out, contract roles have many benefits that you may not have considered, even when compared with the trustworthy full-time role. Believe it or not, many people who take contract positions stand to experience a higher level of job satisfaction because of higher pay, greater flexibility, and wider exposure. Let’s look at a pair of hypothetical young technologists—we’ll call them Jack and Jane—to break things down.

If you’re still unsure of which of these two options is better for you and you’re having a difficult time deciding, consider reaching out to other professionals from your industry. If you’re working in an industry or niche that allows you to choose, go for the option that will make it easier to improve your current skills and even expand them. So, most commonly, full-time employees can expect to have access to various training and improvement programs that will enable them to perfect their skills and even pick up some new ones along the way. What’s more, even if they identify that the company lacks the necessary tools or equipment, full-time employees can rest assured that they will most likely provide them sooner rather than later. And while it is true that, as a contractor, you will need to meet certain deadlines, you are the one that has the freedom to decide when and how you’ll approach finishing your work. Previously we’ve only briefly mentioned some factors that emphasize the difference between contract work and full-time employment.

Contract vs. Full-Time: The Legal Framework

As a result, you are empowered with the flexibility to work on projects that interest you, and also the ability to balance your work and personal life more easily. In addition, you also have the flexibility to take on new projects contract vs full-time salary as they become available. This makes you responsible for finding your clients, setting your rates, and managing your business affairs. Contractors also typically have more freedom when choosing their projects and working hours.

After pursuing business ownership, which pretty much is a glorified full-time employment, my wife and I decided to split our time and became part-time employees. I became a personal trainer and https://remotemode.net/ my wife returned to help at the grocery store. It allowed us to manage our own schedule in a way that where we can continue to contribute to our clients while still having time for our family.

Connect with Other Professionals

However, there are still certain professions and occupations that don’t offer the possibility of choosing between the two, so you need to keep that in mind as well. Every company employee will have access to any tools and equipment they may need to get their work done. However, once you reach a certain level of success and manage to make a name for yourself, you can expect to be able to accept or decline projects as you see fit.

A benefit to investing money in a contract vs. full-time employee role is that you can put a lot more in these when you’re solo versus the cap set by your business. As of 2021, the SEP-IRA contributions max out at $58,000 as does the solo 401K. These are more often offered in a type of contract employee role where you’re expected to show up at set hours and do virtually the same type of thing as regular employees. A contract employee role like this is very different from the freedom that comes with freelancing. While working as a contractor, you have the freedom to choose your own projects and work hours.

Discovering Life is Like Drawing a Bicycle

Rather than staying at the office even when you are not productive, a freelance position allows you to work according to your responsibilities and get paid for the same. Nevertheless, there are still a variety of options for contract work in many different industries. Contract work is an option for nurses, skilled tradespeople, creative artists, and even information technology professionals.

• Workers can enjoy job flexibility, diverse project experiences, and the potential for higher pay rates.
• Some choose to work as independent contractors because it’s a great way to make a huge sum of money over a few years.
• That way, you can quickly improve yourself professionally, which will only result in better job opportunities down the line.
• To many people, particularly those either planning or already having a family, this is one of the most vital advantages of being hired full-time.
• Your responsibility as a recruiter is to highlight the benefits of contract work to candidates.

As mentioned earlier, contractors, on the other hand, will need to take care of this on their own. Once you get hired as a full-time employee, you can rest assured that you are guaranteed work. Since you’ll be able to decide how much work you wish to take on and how many different clients you wish to work for, you’ll also be able to control your finances. As a contractor, you can also choose to work for multiple clients simultaneously – some of which may even be direct competitors. On the other hand, full-time employees can expect things to be quite different.