There are many of pros and cons to consider when it comes to being a contractor. On the one hand, you have more freedom and flexibility; on the other hand, you may not have as much stability. In this blog post, we will take a closer look at both sides of the equation so that you can make an informed decision about whether or not contracting is right for you.

Some people choose to make contracting a career and some may find themselves picking up a one-off contract to suit personal circumstances or because they may not have found the perfect permanent position to commit to. Either way, one of the biggest pros of contracting is that you have a lot more freedom and flexibility. You can choose your assignments, choose your own hours in some instances, potentially work from home, and take on as many or as few projects as you want at any given time. This can be a great way to make some extra money on the side while you focus on other endeavours that suit your lifestyle.

If you work in the corporate sector, you may find that contracting offers a lot more opportunities for career growth. Learning multiple new systems & workflows, working across different industries, and using a variety of technologies can be a big pro. As a contractor, you are often thrown into the deep end and are pushed to learn a lot about new systems and processes quickly. This can make you more marketable in the long run. In many cases, you can also command a higher hourly rate than what you would earn as a salaried employee although this is usually to offset the fact that as a contractor you are not entitled to the same benefits as permanent employees such as annual leave, sick leave, for example.

On the flip side, there are some downsides to contracting that you should be aware of. One of the biggest is that it can be a lot less stable than having a full-time job. You may have periods where you don't have any work lined up and need to hustle to find new projects which can be tough if you are used to having a regular paycheck. You may end up with periods of unemployment, and there are no guarantees in contracting, and notice periods are often very short, perhaps only 1 week, 1 day, or even immediate for some. This can be a scary proposition for some people, and it's important to make sure that you have a financial cushion in place in case of lean times.

Another downside is that you may not get the same level of job satisfaction as you would from a full-time position. This is because contracting often means working on short-term projects with different teams which can be less cohesive than a full-time team that you get to know over time.

You also won't have the same opportunities for professional development as you would in a full-time role. In most cases, you will need to take on these activities yourself and find the resources to do so which can be difficult.

You could also often find yourself overqualified for the job, thereby doing more junior tasks as the company needs a reliable and more senior pair of hands to plough through things. And if you're not careful, it's easy to get pigeon-holed into a certain type of work or industry and find it difficult to break out, however, this could also work in your favour as you become a subject matter expert in a particular area if you have done a few similar contracts thus becoming sought after with a unique skillset.

Another downside could be that as you are there for a finite period of time, perhaps building internal relationships can be tough as people may not be as willing to invest in you and you may not have as much of a sense of belonging as your perm counterparts may. On the plus side of that though, you often don't get caught up in 'office politics' and if the culture isn't right for you, then you aren't in for the long haul.

Best of both worlds?

One way to enjoy the pros of both is to pursue roles that are considered temp to perm. This enables both employer and employee to try before you buy and ensure there is a great match on an interim basis before committing to anything long-term. Whilst there are no guarantees, understanding why the role is being recruited as temp-to-perm can help. For example, are there budget constraints on new headcount or is there a major deal that's waiting to go ahead that will determine long-term staffing requirements?

So, what's the bottom line? Contracting can be a great way to earn money, improve learning agility, and have more flexibility, but it's not for everyone. If you're considering becoming a contractor, make sure you weigh the pros and cons carefully to see if it's the right fit for you.

We would love to hear about your contracting successes or disasters - comment below on experiences you have had working as a contractor or with hiring a contractor.

If you are looking for temporary or contract work, or are looking to hire a temporoary or contract worker please reach out to Declan Stacey on 02 9689 8918 to discuss.