Contracting vs permanent job: Which is better for you?
Deeply seated in our Asian culture is the perception that we need to strive towards full-time employment to be seen as responsible, full-functioning adults. Any other form of employment such as part-time, freelance or contract work seems to be perceived as unstable and somewhat less valuable. The rise of the contract professional This perception is gradually changing as companies worldwide are moving towards an integrated workforce model, where they are increasingly hiring more contractors and part-timers over the past few years. In 2018, Stephane Kasriel, CEO of Upwork and co-chair of the World Economic Forum’s Council on the Future of Gender, Education and Work, said in a press release, “As skills become more specialised, companies either need to invest in reskilling to prepare workers for the jobs of tomorrow or leverage freelance professionals who are nearly twice as likely as traditional employees to proactively take reskilling upon themselves.”
Advantages of being a contractor
1. Build your portfolio
Most companies are open to engaging contract professionals
who do not have a vast amount of work experience for short-term
assignments. And naturally, this situation is dependent on the
type of project. Companies that hire contractors for longer-termed
work, usually over six months to a year, would most likely require
you to have more expertise in the specific sector. Whatever the case
, you get the opportunity to buff up your portfolio as you collect
different work experiences at various companies.
2. Widen your professional network
With the opportunity to work at different companies
over a shorter period, you will meet different people
– more people – expanding your network. The more extensive
the network, the more contract opportunities. The brilliant
thing is, these professional contacts are at your workplace
– if you perform well at your tasks, it wouldn’t be long before
they hear about it from your manager. And that will keep you at
the top of their minds when they need contract staff in the future.
Do keep in mind that you should be proactive and not sit quietly at
your desk and expect people to notice you. Make small talk at the pantry,
the lift; nothing too aggressive as that can be a turn-off for some.
3. Learn from a diverse range of organisations
The (other) beauty of being a contractor means you get to experience
working for a diverse range of companies. This is a valuable and
beneficial opportunity for you to observe the inner workings of various
businesses, and that would add value to your experience when you move on
to the next project. For instance, how family-based companies compare to
small and medium-sized enterprises and multinational corporations. Also,
by working on different projects, you would pick up new skills that will
further improve your portfolio.
Disadvantages of being a contractor
While working as a contract professional may sound like a jolly ride, it comes with its drawbacks and is no walk in the park. For one, when you work on a contractual basis, you do not have the regular standing of a permanent employee. Companies can terminate contractors without documentation or recourse options, as there may not be human resource policies to follow. Also, potential employers may see contractors as being uncommitted. And it can get disorienting for contract professionals when you have to keep readjusting to new working environments after each contract term ends.