The Pros and Cons of Contracting

Pros & Cons of Contracting - Fenero

7 Benefits & The Challenges of Contracting

More money, flexibility and vast opportunities are just some benefits associated with contracting, but it’s not without its downsides either. Before considering a career path in the contracting lane, you should weigh up the impact of these pros and cons on your individual circumstances.

Let’s examine the benefits and challenges a contractor may encounter.


BENEFITS

1.

Generous pay

Contractors are usually paid more for their work because they are often employed on a short-term basis. Rates can increase even further when skills are in short supply or projects need to be completed at short notice.

Earnings can also be boosted using a contractor specialist tax advisor or Umbrella Company like Fenero. We’ll help you maximise tax benefits and other rewards that are often not clearly highlighted to contractors. These tax benefits help boost earnings.


2.

Flexibility

Variety and flexibility are two notable differences between contractors and regular employees. For example, contractors have opportunities to work for multiple employers over much shorter spaces of time. Where “job-jumping” may be a questionable trait in a permanent employee, for a contractor it can increase his or her standing as an attractive candidate, proving to be someone who can bring a wealth of experience to a new project.

Gaining experience in various companies opens up new and exciting projects to get involved in; this is often an important reason people choose contracting, especially those who get bored easily or find routine mundane!


3.

Independence

Freedom comes in many forms as a contractor.

Long periods in between contracts present the opportunity for travel or further education – something that isn’t always possible as a regular employee due to limited annual leave.

Contracting also facilitates greater control over a preferred industry or working environment; be that surrounding yourself with like-minded individuals to expand learning opportunities or simply working remotely to suit personal circumstances.

Working as a contractor can also help circumvent the matter of office politics, which is favourable to those who prefer to simply go to work, to work!


4.

Introduction to new software and systems

Working in different companies allows contractors to gain exposure to a multitude of operating systems. Although frequently adjusting to new technologies may be difficult in the short-term; it can prove highly beneficial in the long-term. Those who can comfortably adapt to new methods are more appealing to prospective employers when the time comes to find a new contract.


CHALLENGES

5.

Job insecurity

As a contractor, you must be prepared to constantly be “on the job hunt”. There is no guarantee as a contractor that you will be kept on full-time or that your contract will be extended. Many agencies recommend that you start looking for a new project as soon as your current one commences, or that you invest time in ongoing networking – this can take a lot of motivation and diligence to ensure you can secure successive employment. Likewise, budgeting is a must as a contractor. Spending wisely and saving amply is essential in case the rainy days between contracts turn into wet weeks!


6.

High Expectations

A common reason why employers hire contractors is to complete an important project in a short space of time. Contractors are often expected to be fully capable and equipped to perform without requiring any additional training. This can be quite demanding when starting a new job or looking for a new role and may lead to spending a lot of time outside of your working hours, up-skilling and self-teaching.


7.

Minimal Employment Benefits

Although contractors usually get paid more than regular employees, they typically lose out on benefits like holidays and sick pay. This is another expense to be factored into a budget when choosing potential contracts. Non-monetary issues like social outings and sometimes being the “outsider” amongst the team can sometimes feel a lonelier lifestyle for a contractor.

However, choosing to work with Fenero gives you access to the same EAPs (Employee Assistance Programmes) which are available as a benefit to many permanent employees. Fenero are the only Irish Umbrella Company Service provider offering free access to an EAP to contractors.


Summary

Weighing up both the benefits and challenges of contracting, your own individual preferences prevail in the overall decision and the answer ultimately comes down to your personality and circumstances.

If you think contracting is a good path for you but you are deterred by administration tasks and business responsibilities, Fenero can help take these jobs off your hand so you can focus on the job you love doing most. If you need more advice on working as a contractor, get in touch with us at hello@fenero.ie

About Sinead Doherty

A passionate advocate of personal wellbeing and positive mental health, she is particularly interested in the field of Positive Psychology and is the force of enthusiasm behind Fenero’s wellbeing initiatives.

Related Posts