The Benefits Of Working Contract Vs Permanent
There are benefits of working in both contract and permanent roles, and while the pro’s vary from role to role there are some negatives that will lead you to select one type over the other. Let’s take a look at the benefits of both to see which avenue works best for you.
3 Benefits of Contracting
Flexibility/ Work-Life Balance
Not only does contracting bring flexibility but you can fit the contracts you take around your lifestyle and working routine. Usually this means you can take holidays as and when you please and you don’t get too tangled into office politics.
Working as a contractor presents the opportunity to undertake a wide variety of roles where you can often build up your work network and if leave a good impression, you may be considered for future projects. As well as this you can truly become an industry expert by experiencing how your role can differ depending on the company you’re working at. The door then opens to be able to work all over the world as some assignments may offer to work abroad.
As a contractor, you would typically receive higher payment in your role than you would if you were employed on a permanent salary. On average your salary can be almost double that of a permanent employee. You are paid very high rates due to your skills and flexible nature of the relationship and the fact that many positions are short-term. As most contracts are often paid by the day/hour you can also have the option to work overtime and be paid for it. You can easily set up your own limited company. This is the most tax efficient way and makes it very easy to set up and manage accounts. Alternatively, you can get someone to manage your financial affairs for you.
Top 3 Benefits of Permanent Working
Flexibility/ Work-Life Balance
Being in a permanent position provides you with job security but always remember it’s important to stay on top of your development and keep your skills in line with the market. Loans and mortgages are easier to come by and you don’t need to worry about professional indemnity insurances and income protection. You will often have the opportunity to work from home should it fit your role and most companies provide you with the equipment to do so.
Training is usually funded as it’s more worthwhile for the company to invest in you. You usually have clear promotional criteria and clearer career progression/career path. You are also more likely to be part of a team and be absorbed in the culture and work ethics of the company.
Being a permanent employee means having a regular and consistent salary package that can include employee benefits such as pension contributions, paid holiday and sick pay. Then on top of that, some companies also offer other benefits such as insurance, health care, car allowance, performance bonuses, shares, childcare vouchers and travel expenses. You don’t have to worry about paying your own taxes as your employer will sort this for you.
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