"Contracting" or "temping" is a term that is recognised and expressed frequently in today's ever-turbulent marketplace. Generally, this term refers to a person who engages works for a company for a temporary period, whether this is finitely defined, or on-going. Not directly employed by the company, contractors, commonly, are not entitled to the conditions and benefits associated with a permanent contract. So why contract?
Firstly, it is important to recognise and distinguish between two categories of individual who assume contract positions - Those who have to contract - this covers a multitude of circumstances including recent graduates, those on working visas, individuals returning to work after a break, those between permanent positions, those being made redundant, and those who have opted for early retirement. In general, those who are looking for a short-term solution to their employment and/or financial situation, and those who choose to - this faction of the population have made the conscious decision to pursue a career on a contract basis. More often than not, such individuals will have set up, and operate through, a limited company. This is a relatively simple process and can offer a number of financial benefits, as well as the opportunity to manage your own business, in turn offering greater flexibility in career progression and employment decree, through increased independence.
2 Benefits of contracting
While this form of employment may be the less preferred option for some, entered into through necessity rather than desire, there are a number of definite benefits to be obtained.
Financial:
Firstly, and perhaps most alluring, is financial reward. Contractors will be paid a premium rate due to the nature of the relationship, and the relatively short-term nature of the position. Increases of 100% upwards on the equivalent salary are not uncommon. In addition, you will be paid for every hour you work in a contract position, frequently enjoying overtime rates.
A Foot in the Door:
Contract positions also offer a greater flexibility in working conditions and agreements, present an excellent gateway for those who have been out of the job market for a while to ease themselves back in, and can, very often, lead to the offer of permanent positions. For those ideally looking for permanent work, a contract offers an excellent opportunity to build up market/company knowledge before pursuing a permanent appointment - a "try before you buy" situation. In addition, the new Working Time Directive also means that people working on PAYE contracts are entitled to 4 weeks paid holidays a year. Contracting also tenders flexibility in payment terms. Many people find that being paid weekly can offer a "quick fix" to short-term financial difficulties, and allows them to manage their affairs more easily.
Skills Building:
Working in multiple contract positions over an extended period is an excellent way to build a unique skill set, possibly covering a number of industry sectors and presenting an incite into different company structures, operations and cultures. This will help to enhance a CV, building up an admirable list of reference contacts, culminating in the contractor being known and recognised within the market place and, ultimately, the ability to demand higher rates, or permanent employment.
3 Conclusion
Contracting is not everyone's cup of tea. However, those who do enter into it, for whatever reason, by and large enjoy the flexibility that it offers them on a daily/weekly basis, as well as the convenience of being able to choose when and where to work, within reason, and, of course, the associated remunerations.
