Thinking of contracting? Top 10 reasons why contracting is better than permanent employment
Up until less than a decade ago, permanent roles were arguably the most prominent way of working. Now, contracting roles are become ever more popular and there are now estimated to be 980,000 independent contractors in Australia.
If a contracting role comes along, you might wonder how much better it is compared to a permanent role which has security and the opportunity for long term training.
10. SKILLS DEVELOPMENT
Working in a number of roles throughout your contracting career can benefit your skill set immensely for a number of reasons. By working for a number of companies, you’re diversifying your skills based on the industry.
9. VARIED WORKING ENVIRONMENTS
Variety is the spice of life! This is especially true of working as a contractor. You could be working for a high level IT Consultancy for the first 6 months and a charitable organisation the next. Obviously this means you aren’t stationed in one company for a long period of time and potentially don’t see the effects of your work, but more opportunities means more variety on your CV.
8. A GREAT LOOKING CV
The more contracts you take up, the more diverse and broad your CV will look. This means, as long as you do a good job and the clients you work for are happy, you have a good level of references to use when finding other work.
7. CONTROL YOUR FINANCES
As a freelancer or independent contractor you can separate your personal finances from your business finances. This means greater organisation and greater control of your finances.
6. MORE OPPORTUNITIES TO NETWORK
One contracting job undoubtedly leads to another as word spreads of your abilities. This means working as a contractor gives you more chances to network with clients from a huge variety of industries.
5. INDUSTRY EXPERT
Contractors generally have a high level of skill in a certain field and therefore are generally seen as an industry expert. This can clearly affect the type of jobs that are offered to you.
4. RESULTS, NOT OFFICE POLITICS
Unless you’re working as an interim manager, contracting takes away the need to worry about office politics. You’re judged on your work and that’s all you need to worry about.
3. BUSINESS EXPENSES
One of the best reasons for being a contractor is being able to claim expenses. There are a variety of tax deductible expenses a contractor, unlike a permanent member of staff, can claim for. These can include computer equipment, accommodation and travel, depending on your business.
2. YOU’RE THE BOSS
If you operate a Limited company, you make the decisions. You can decide when you work, what you work on and if you have an opening in your day for a gym session. In the end, contracting gives you the freedom to decide your working life, as long as your clients are happy with your work.
1. HIGHER TAKE HOME PAY
If you’re considering contracting, this could be the clincher.
As a contractor, you take home a significantly higher amount of take home pay (legally) than if you stayed as a permanent employee, depending on how you set-up.