Should I become a contractor? We break down the pros and cons of contracting.
Contracting can be elusive and an excellent opportunity to work worldwide while offering workers more flexible working opportunities. However, potential contractors must weigh the pros and cons before embarking on this career change to understand if it's right for them.
Throughout this piece, we will explore the benefits and challenges of a career working as a contractor.
Benefits:
Wide Range of Job Options:
Contractors can gain experience across several projects in various companies in different countries. From small organisations to startups to the public sector to large multinational companies, contractors can work for multiple organisations and work between projects at different businesses. In traditional permanent roles, such frequent job changes may be viewed as job-hopping. In contracting, this can display a variety of experience and adaptability across projects.
Contracting can be an excellent career opportunity for individuals who love change and variety.
Higher Potential Earnings:
A 2021 survey found that contractors earned more than 1.5 times that of their full-time employed counterparts.
Highly skilled professionals in high-demand sectors can earn a higher daily rate than a full-time employee. However, as we discuss later, contractors must consider the time off they wish to take off throughout the year in deciding their daily rate.
It is crucial to set up the appropriate structure to pay taxes and be compliant in the country you are working in. Such practices are where 3C Global can help.
Opportunity to Develop New Skills:
The ability to work and gain experience across various companies can allow contractors to become familiar with different operating systems, work methods and technologies. This experience can be beneficial regarding adaptability and utilising past working experience to benefit current contracts.
Flexibility:
One of the main benefits often cited by contractors is the flexibility it offers, from the ability to work in the country of your choice to use the time between contracts to travel or upskill.
Contracting may also offer many fully remote opportunities, which can benefit those who pursue a nomadic lifestyle, want a better work-life balance, or simply want to avoid office politics.
Challenges:
Fewer Employment Benefits:
As you are not a full-time company employee, you will likely not be entitled to paid holidays and sick leave. In addition to this, contractors would not be entitled to a company pension scheme or benefits such as health insurance.
It is crucial that contractors factor in any planned holidays they wish to take throughout the year into their rate in addition to any other business costs.
Gaps between contracts and less job security:
Contracting can present some additional risks as opposed to traditional employment. Contractors can sometimes find a longer gap than expected between contracts when searching for a new role. Please read our article on maintaining a positive mindset between contracting jobs. However, it is important to note that due to the high demand for contractors in the present market, gaps between roles are often not long.
Higher Demand & Expectation from employers:
As is often the way with contract roles, as contractors tend to be highly skilled, an organisation will hire them with less training given upon starting. This lack of training for new contract professionals is because contractors are viewed as highly skilled in their field and adept at achieving the goals set out by a firm without additional training.
In Conclusion:
There are many pros to embarking on a career as a contracting professional. However, before embarking on this path, one must weigh up the potential challenges they may face in this line of work and determine if it's for them. If a career in contracting is something you are looking to embark upon, please do not hesitate to contact 3C Global.
There are many considerations for new contractors, including tax, insurance, accounting, invoicing, compliance, and more. These essential aspects are where we at 3C Global can assist you.
Contact our team to learn more and begin your contracting journey today!
