Have you ever considered signing a lucrative tech contract but held off due to the unknown? While contractors are common in many other businesses, the demand for contract workers in the technology sector has spiked in recent years. According to this report by the Australian Bureau of Statistics, independent contractors make up just under 10% of the employed population, at one million contract workers across Australia.

With the current market creating a higher level of uncertainty, employers have been more inclined to hire on a contract basis for specific skills to deliver quicker results. To help you decide if contracting is right for you, we’ve highlighted both the benefits and drawbacks of contracting in IT below.

LEt’S StART WITH THE PROS!

$$$ Contracting is Lucrative

For many contractors, the ability to earn a higher income working full time hours is a major pull. When determining how much you will earn daily, exercise caution; contractors aren’t entitled to many of the same statutory benefits you would receive as a permanent employee, such as annual leave, sick leave, paid public holidays, long service leave etc. The general rule of thumb is to be looking for at least 30% more from a day rate compared to your salary expectations.

Top tip – PayCalculator is an excellent resource for determining your day rate. Allowing for leave and public holidays, you should expect to work 220 days per year; multiply your daily rate by 220 to calculate its annual comparison.

Exposure & Variety

Contracting provides you with opportunities to work for a variety of different employers, and gaining exposure to different environments, cultures, projects, and tech stacks is sure to build a comprehensive career.

Learning to adapt quickly and be agile in environments is a skill looked upon favourably by employers. All of these things open doors for new opportunities in the future.

Experience to Define Your Speciality

If you are unsure about where you want your career path to go, working short-term, temporary jobs in a variety of fields allows you to see what each entails, and where your skills and passions best fit.

With many employers seeking contractors for specialist roles, finding your niche and building expertise will see you high in demand. Often brought in to solve a specific business problem, your skills will always be working towards an outcome or project goal rather than BAU activities.

Run Your Own Business

You can run your contracting business as your own company which comes with certain benefits and tax breaks – usually with the help of a skilled accountant.

As relationships are key to any business, a successful contractor will work hard at building their network, forging strong relationships with previous peers and managers – it’s advised to not burn bridges! Building relationships with a network of highly skilled recruiters will also ensure that next opportunity is knocking on your door.

NOw LEt’S Run ThrOuGh thE CONS:

#workperks are out!

This doesn’t mean you’ll be confined to your desk; you’ll still be able to take time off if you need a vacation or become ill (in accordance with your employer’s leave policies). It simply means that you will not be paid for any days you do not work.

As an example of where that extra 30% comes into play – You’re a Project Manager on $1,000 and you take a two week family vacation. This means you’re $10,000 down compared with if you worked. Add in public holidays and becoming sick, it can all feel a little costly.

Lack of Safety Net

Contracting is often unpredictable, projects can be cut short at any time by activating notice periods and, you’re not entitled to similar employment protection compared with permanent employees. Typically, contractors are first to be affected during project and funding cuts, even if you’re doing an excellent job.

Stalemate!

Companies rarely invest in upskilling and promoting their contract workforce, leaving you to feel like you’re in a stalemate situation. Inability to advance in a role can leave you feeling unfulfilled in your career; if moving up the ladder is important to you, it may be time to reconsider whether contracting is still the right fit for you at this point in your career.

Higher Expectations

You’re an expert in your field and have a certain skill set that companies in your industry want. As previously mentioned, companies opt for contractors when in need quickly to solve a problem or to add more fire power. You’ll be expected to hit the ground running and expectations to deliver will be almost immediate. With permanent roles there is usually a thorough induction period and a slower ramp up process to help you settle in.

To Contract or Not to Contract?

Employers are increasingly considering a contract workforce to manage varying workloads, but they are also looking for ways to keep the best talent engaged and motivated, making life as a contractor even more appealing. When you believe you’ve mastered your craft and found your sweet spot in your position, it might be a great time to think about contracting. However, if your ambitions are to move up the ladder finding the right organisation and settling down permanently is the best choice.

Are you interested in learning about our current permanent or contact job opportunities? Jump onto our careers page here or get in touch. Follow us on LinkedIn to keep up to date with all things tech and see our latest job postings.