Still undecided about contracting?
This should help clear things up
People come into contracting for any number of reasons. You may feel it’s an astute move as the economy starts to recover and demand for contractors increases. You may be looking for a new challenge or want more flexibility to fit around your lifestyle. You may be drawn by the prospect of doubling your earnings (who wouldn’t?). Or perhaps you’ve been made redundant and want to test the water before committing to another full time job.
Contracting is a growing industry, despite the recession. Many different types of companies need interim management, specialist skills and temporary support and are relying more and more on the flexible terms and financial benefits of freelance professionals on short term contracts. The key industries include IT, engineering, energy (oil and gas), creative, finance accounting, medical, teaching and construction.
As with any job, there are plus points and downsides, but these very much depend on your outlook and circumstances, and what might be a downside for you could easily be a plus point for someone else.
We’ve put together a list of facts about contracting that we think it’s worth highlighting, but it’s up to you to decide whether they’re good points or bad. If you’re still undecided, try doing a tick list of the different features to help you make your mind up (the first one’s a no brainer).
| Facts about contracting | Plus point | Downside |
|---|---|---|
| You can earn up to twice as much as a full-time employee |  |
|
| Contracts can last between 1 day and several years | ||
| You are responsible for finding your next contract, and have the freedom to decide where to go next | ||
| You are responsible for negotiating your own payment terms and working conditions | ||
| You’re more likely to be affected by changes to legislation, such as IR35 | ||
| You essentially work for yourself and are your own boss | ||
| You’ll need to brush up your networking skills and have the confidence to sell yourself | ||
| You’ll need to build relationships with recruitment agents | ||
| You’re only paid for the work you do | ||
| You may need to commute long distances | ||
| You may be able to work in a variety of different industries | ||
| You’ll be able to experience different company cultures and different management styles. | ||
| You have the chance to develop existing skills and acquire new ones | ||
| Contractors are often treated with more respect than full time employees (but sometimes not) | ||
| You may not have the same relationship with colleagues as full time staff and may work alone more frequently | ||
| The contracting market is growing, with more people becoming contractors | ||
| If you don’t like it, you can always look for another permanent job or a different contract | ||
| There will be a certain amount of paperwork and admin to do, however you decide to operate | ||
| You may not get the same perks as full time employees, such as sick pay, medical insurance, pensions and holiday pay | ||
| You’ll be responsible for your own training, and for structuring your own career path | ||
| You’ll generally have less job security |
