Contract Jobs vs Permanent Jobs: Which is Better?
Contract job or permanent job? Which would provide a better career path for you? Job hunting can be a confusing time where you would have to decide what kind of jobs are suited for you, the scope of work that you want to do, and the duration of working at your next job etc. Sometimes while evaluating, it might come down to choosing between a contract position and a permanent position. As you evaluate, it is important to look at the differences between what either job offers, and see what job helps you with your career development best. Identifying things that you value in a job, and how it can affect your future will set you on the right track.
In the past, it might have been more of a norm to opt for permanent positions due to the conception that it would provide more job stability. In this day and age, however, this may no longer be the case. Employers are increasingly offering more contract positions with attractive incentives, in line with the changing times and needs of businesses in this time of the pandemic. This article will go through some of the differences between a contract and permanent position, in hopes to help you to evaluate your options better. Here are some factors that you may want to consider when discerning for your next job.
Pay and Employee Benefits
In some cases, contract positions may offer a higher pay than that of permanent jobs. Though permanent positions may provide more certainty for the future to some, the tradeoff may be settling for lower pay than what they could have for contract positions. You can evaluate whether the pay justifies the job scope and environment that you will be working in. On top of that, you can also bear in mind that though contract jobs can offer more attractive monetary compensation, they may not provide the employee benefits that people with permanent jobs will get to enjoy. Permanent positions often offer medical insurance, office space and equipment, and training as part of their employee benefits. Ultimately, weighing the cost and benefits of each kind of position can help you to see what kind of employee benefits are of more value to you.
Experience and Growth
What is the kind of experience and growth that you desire in your next job? The kind of career development that you will experience in a contract position is different from that of a permanent position. In a contract job, you have the flexibility of choosing the employers that you want to work with, the kind of job that you’d like to go for in subsequent contract jobs and build your portfolio from there. In a contract job, you are also constantly exposed to different scopes of work, different working environments, and different working styles of your employers. You would be able to increase your network quickly with each new contract position. Sometimes, the company might even provide training though within a short term. In different contract jobs, you are constantly equipped with new skillsets required for new scopes of work.
In comparison, permanent positions offer a more structured career development path for your needs. As employers look for people that would stay in permanent positions for a long term, they would provide long-term training and more opportunities to rise up the corporate ladder within the company. As compared to contract positions where you can only negotiate for a better title when you renew your contract or change your job, permanent job positions can create opportunities for career progression easier as employers can monitor your performance in the long haul. The kind of experience that a permanent role employee would receive would also be limited to the kind of work offered by the company. Despite this, there is a clear plan for developing employees into future managers/directors.
Career stability can take on many forms. In contract positions, you can expect greater independence in planning the future of your career, which jobs to apply for after your contract has ended and what kind of portfolio you would want to have. Contract jobs allow you to gain vast working experience from different environments, along with a diverse portfolio. This could help to build your reputation as your networks become wider, which also helps you to find future jobs through referrals, testimonials, and connections. With a large network, you might have a constant supply of offers each time you move on to your next contract job.
In contrast, permanent positions offer career stability by nurturing you into future managers. You would have a fixed set of objectives that you would need to fulfil, in line with the company’s long term growth and development. The kind of career stability that you are looking for will determine the kind of position that you would want to apply for.
The work arrangements and working environment would also be something that you might want to consider when evaluating your choices. For contract positions, there is usually greater flexibility in work arrangements as contractors are usually paid based on projects completed or by the hour. In some cases, remote working and flexible working hours are allowed for contract jobs. For permanent positions, there is a fixed schedule and employees often have to work together with others within the company for long-term projects. Permanent employees get to enjoy having long-term relationships with their coworkers through team-bonding events, and constant interactions.
Now that you know a little more about the differences between contract and permanent jobs, which kind of job is more in line with your future career plan? If you are looking at making a career switch or in search of a new job, check out JobsPivot’s user-friendly online career portal here. We offer a range of contract jobs and permanent jobs as well across a diverse group of industries. Our intuitive interface and advanced search algorithm can help to bridge you to the right job opportunities. Start your job hunt with us today!