Benefits of contracting vs permanent employment

Benefits of contracting vs permanent employment

05/04/2021 - 12:00

Are you looking for a change? Each year, thousands of Brits start contracting to get them out of a slump in their work or home life.

For many full-time employees, contracting is the answer to numerous issues with their work and lifestyle. It lets people use skills and experiences developed as an employee and apply them on their own terms - at a time and place to suit.

To be sure, contracting isn’t for everyone. There’s definitely some downsides that come from trying to make it under your own steam, but we think the benefits outweigh the downsides, especially when you use an umbrella company like

More flexibility

More flexibility about when, where and how long you work for is becoming increasingly important for the modern workforce. Most contractors say that this is the chief benefit of working for yourself.

Some choose contracting because they need to fit work around childcare duties, others choose it because they want a better work-life balance. Whatever your reasons, contracting gives you the flexibility to make it happen.

Higher income

While it’s certainly not true in every case, contractors generally earn more than permanent employees in similar roles. Companies and public sector organisations are often willing to pay a premium to get the right talent in place for important short-term projects.

Contractors with relevant experience and a strong reputation are in a very strong position when it comes to negotiating their compensation.

Develop valuable skills quickly

In addition to the ‘business as usual’ work that you’d do for an employer or client, contractors need to rely on other skill sets to survive.

You’ll need to be adept at assimilating into new companies quickly. You’ll learn to be a skilled manager of people and projects, often in fast-paced and dynamic work environments.

Many contractors also look after things like company finances and marketing, so there are many opportunities to learn new things.

More variety

Working for the same employer, in the same place, with the same people year in and year out can become stale for some people. If you’re the kind of person that likes to mix it up every now and then, then contracting could offer you the variety you need in your life.

As well as shifting contracts every few weeks, months or years, you can also take on different contracts at the same time, meaning you can be working on different projects at the same time.

Make a bigger difference

When you’re working full-time for a big organisation, it’s not always easy to see how all of your hard work translates into something meaningful. With contracting though, when you’re often working on a short-term project as part of a small team, it’s much easier to see the impact you’re making every day.

And through your experiences working for multiple organisations, you are often able to contribute more to projects through your more well-rounded expertise.

Umbrella contracting - the best of both worlds

Contracting through an umbrella company means that you get to enjoy all of the above benefits alongside some of the perks that come with permanent employment, including statutory sick, maternity and paternity pay.

For more information about joining an umbrella company, speak to a member of our team today. Call: 0800 121 6513.