Pro's & Con's of Contract VS Permanent Work

Written by Soong Chong, CEO

A common question a job seeker will ask is "should I become a contractor or should go into a full time role?"

This is not an easy question to answer. It will depend on a number of factors including but not limited to your current financial position, your risk aversity and whether or not your skillset is in high demand.

The following is a generalisation. If you are young and don't have financial burdens and you are seeking a greater work variety then contracting might be a good option for you. If you do have financial pressures like a home loan and family dependents then a permanent role with job security might be a better option for you. However, if your skillset is in high demand then you can freely pick and choose the opportunities that come your way.

Below is a list of pro's and con's between contract & permanent employment:

Contract Jobs

Pro's

• More Money
  With a contract position you are more likely to get paid a higher amount than a permanent role due to the short term nature of the role.
  
  
• Gain Experience
  By being a contractor you are able to work in a number of different companies, giving you the ability to adapt & learn new skills in various environments and interact with a greater number of people. It can be a great reputation builder.

Con's

• No Opportunity To Progress
  With contract roles the company will need you in specific role with specific tasks, giving you minimal opportunities to progress further in your career & move up the career ladder.
  
  
• No Additional Benefits
  As a contractor you are only paid your hourly / daily rate with no additional benefits such as paid holiday leave / sick leave etc.

Permanent Jobs

Pro's

• Job Security
  With permanent opportunities you are guaranteed job security. This in turn, results in a stable income & ability to meet your financial commitments. It also allows you to develop close and long term relationships with your colleagues resulting in a enjoyable work environment.
  
  
• Benefits
  There are many benefits associated with permanent work including paid sick leave, holiday leave, maternity leave & annual leave. Companies also offer other additional benefits such as a company car, gym membership, flexibilty to work from home and paying for your tertiary education.

Con's

• Pigeonholing
  It is very possible that you might be pigeonholed into a role with no scope for growth.
  
  
• At the mercy of company
  The employer could be impacted by bad decisions and the global economy. There are no guarantees that your job is safe.