WHEN it comes to seeking out a job, many have a tendency to favour permanent positions and avoid even looking at contract roles. Considering many companies, in all sectors, are turning toward the practice of offering delimited contract periods rather than bringing on new employees in a permanent capacity, this might be a career misstep. In the UK, between December 2010 and December 2012, the number of temporary workers increased by 89,000 to reach 1,650,000 – nearly half (46%) of the total jobs increase. The number of temporary workers in Canada hit a record two million in 2013, according to Statistics Canada. And one study done in the U.S. predicts that 40% of America's workforce will be freelance by 2020.
If availability doesn't convince you to go for a contract job, maybe these advantages will. Contract roles, because of their time-restricted nature, often call for their incumbent to jump right in and take ownership of their work. That might mean there is more opportunity for autonomy and making your mark in the workplace. This greater chance to prove yourself might be rewarded more than a traditional employee who is bound by the company's advancement structure. As a contractor, the reward could be continued employment at a higher rate if you do a good job and they want to keep you. As a contractor, you might also be more likely to avoid the dreaded office politics that come up when many of the same people work in the same environment for a long time.
Diversity is surely also a benefit to contract work, as it gives you the chance to sample a variety of roles and employers, and hone your craft more than a permanent position might. For the innovative, this is the perfect recipe for promoting creativity as it allows you to apply your skills across a number of different settings. Contract work might also allow for better work-life balance because you are freer to negotiate your own working conditions than a traditional permanent employee who has to follow the same rules as everyone else.
“Personally, I am able to gain a different range of experience and allow me to keep my options open. I am able to move around and not be stuck to a particular location.”
“There are lots of advantages: flexible hours, more freedom to ‘be your own boss’ and at the end of the contract, you can leave freely.”
Contract roles can also be springboards to 'better' jobs because the lower risk of hiring someone temporarily might give you easier access to the company in the first place; from there you can effectively survey the employment landscape from within. The advantages are also clear if you have a short-term work visa in another country - you might be more likely to be considered if you're applying for a contract position, because employers hiring for permanent positions will always seek to hire the most qualified candidates who are also likely to stay in the role the longest.
“When I moved to another country on a temporary visa, I started applying for permanent positions and was unemployed for a long time, I think because employers didn’t want to take on someone who couldn’t work indefinitely. As soon as I applied for a contract position, I got an offer!”
Many people think the remuneration benefits that come with a permanent position far outweigh those in a contract position, but this may not be true. Benefits packages vary widely depending on the country in which the business operates, as well as the individual employer. The perks aren't what they used to be. Gone are the days of unmonitored spending, driving company cars for personal use and more-than-you-need insurance policies. Contract workers may now be receiving the same benefits as full time, permanent employees.
So, the advantages in contract roles are numerous and employees in these positions still have a lot to benefit from. And even though most people seem to be seeking out permanent employment, those in contract roles don’t seem to be unhappy once they are in place. In fact, one study found that temporary employees were just as satisfied with their jobs as permanent employees.1
“For me, I enjoy contract work at this time in my life. It’s flexible and I don’t feel so restricted.”
“At this point in my life I prefer contract work because it gives me the option of finding different work opportunities to build up my resume. Although I never know where I will be—I find it exciting and an ability to move to unique places for a short period.”
However, despite the prevalence of contract roles in the current job market, and the obvious benefits, many still see contracts as a temporary setback, or simply as a phase in life, until they find a "real job" - a permanent position. The number one reason for this is stability, particularly when it comes to family life.
“I don’t have a family to look after, but if that was the case, I would prefer a permanent position that would keep me financially stable.”
"I've spent most of my life having permanent job positions and still have never worked more than 2-3 years for any one employer. Now that I've switched career tracks, I'm working in an industry where contract positions are more common than permanent ones and although the contracts are roughly the same time frame, I'd still prefer a permanent role. It feels more stable and more like I'm the one in control of my destiny - I leave when I'm ready, rather than just leaving when the clock runs down."
So, just as contract positions are temporary opportunities, so do the vast majority of employees see them - a certain type of role for a certain time in life. Ultimately, most job seekers out there are still looking for the stability that comes with permanent employment. However, if that’s not in your immediate career future, it’s best to be prepared.
“Make sure you read the contract fully and know exactly what is expected from you. Know from what date you start and end, and request to have a review date if one is not already set. Also, find out what you are entitled to (sick days, etc.).”
“Plan your income, plan your expenses, and plan what you want to do in the next few months. This can give an idea of what is to come next but also gives an idea of your expenses and how much you can live off of.”
“Be open-minded. Even though there is a risk that you will be hunting for another job again in a year, you never know what that contract position may lead to.”
1 General Social Survey, Cycle 20, 2006
