12 Benefits of Contract Work

12 Benefits of Contract Work

The job market is no joke right now. With more layoffs than open positions, entry level talent is competing with experienced professionals for the same jobs. While full time employment might be your end goal, I would like to offer another suggestion — contract work. Contract work has evolved in the last 10 years, especially around the benefits and expectations to such an extent that some people prefer it to a traditional full-time job. There will always be trade-offs, so try to consider what you want out of a job and your career. I did, and contract work met my most pivotal needs and everything else I could figure out. So, without further ado, here are the reasons you should consider contract work.

4 female coworkers who are happy at work

A bridge that helps get workers through the unknown

1) Bridge Time Gaps

Time is a tricky thing when you are new to a field or are laid off. It may be that you are not experienced enough for the jobs you want or too many hiring managers are questioning the gap on your resume. Maybe you just need to make a paycheck while looking for your dream job. Either way, contracting is a fantastic way to spend that time, build your skills, support yourself, and wait for the job market to calm down. They are usually easier interviews with set work dates, meaning there will always be a clean break at the end for that pesky question of why you left your last job.

2) Flexibility

Contract work often offers more flexibility in terms of work hours, location, and projects. Contractors can negotiate their schedules and choose assignments that fit their lifestyles. You can take a chance on an industry you know nothing about. Talk to your recruiter before you begin the interview process to see if the company’s expectations match your needs.

3) Variety of Projects

Looking to build your skill set fast? Want to learn about a new industry? Contractors can work on a variety of projects with different clients, which can provide a broader range of experiences and skills compared to traditional employment with a single company. One contract may have you focusing on one aspect of the job while another company may have you focusing on something completely different. Whether it is a skillset, process, or industry change, being a contractor does not lock you down for too long.

4) Higher Earnings Potential

Hands full of money

This is a fact well known in the contracting and freelance circles. Contractors typically have the potential to earn higher hourly rates or project-based fees compared to salaried employees. They may also negotiate their rates based on their skills and experience. This is because companies are not paying them benefits (more on that later), so they balance that out with higher paychecks. If you are worried about taxes, do not be. Many contracting and recruitment companies hire you as a W-2 employee. This is always something to double check with your recruiter before going ahead with the interview process.

5) Networking Opportunities

Contract work typically lasts 6–9 months. That gives you enough time to show off your abilities and work style to the people you work with. Working with multiple clients exposes contractors to a broader network of professionals in their industry, which can lead to new opportunities for collaboration and future work. It is an efficient way to network quickly with people who will see your work and be able to speak to it, and you can rack up those recommendations.

6) Skill Development

Contract work often requires contractors to adapt quickly to new environments and projects, which can accelerate skill development and learning compared to traditional employment roles with more routine tasks. It is also a great way to gain new experience in a field you may not be as familiar with. This is an excellent time to refine all those “soft skills” and “transferable skills” that every job coach talks about with a wide variety of test subjects. Take those learnings to the next job!

7) Work-Life Balance

Contractors have more control over their work schedules, which can lead to better work-life balance. They can prioritize personal commitments and schedule work around their lives more easily. Your hours are often more flexible, and set hours mean that you will not be doing overtime unless you allow yourself to (but you will not get paid for extra hours). Getting the assigned work done is the goal. If you make it to any required meetings and get your tasks completed, most companies do not care where or when you do them. Again, use your recruiter as a resource to filter these questions before going through the interview process and verify them with the company to prevent any potential miscommunication.

8) Remote Work

You had to see this one coming, right? While not a guarantee, remote work seems to be much more common in contract roles than in full-time roles. Many contract positions offer the flexibility to work remotely, allowing contractors to choose their preferred work environment and avoid commuting. Double check with your recruiter and the company before signing any contracts just to be safe.

9) Testing Ground for Full-Time Position

Contract work can serve as a test run for a company to see if you like working there and would be interested in a full-time position. You can see if you like the culture and the people. If you do, then you have the chance to network within the company and refine your skill set to be their next full-time hire. If it does not meet your expectations, then there is a clear escape plan. Many contract roles are actually “Contract to Hire” for this very reason, the company wants to see if you are a good fit before investing full-time resources into you. Take advantage and do the same thing right back!

10) Benefits and Negotiation

There is the belief that contract work means that you are only getting a paycheck and that has never been farther from the truth. It all depends on which recruiting company you go through. Typically, your recruiting company will oversee all your HR needs, so you want to make sure you ask them about what benefits they offer. This is why it is important to know what you want out of the job. In alignment with this, you would conduct your negotiations with the recruiting company. They have their own margins to meet, but if the company already wants to hire you then it is always worth the ask.

11) Clearer Job Responsibilities

Most companies hire contract workers for specific reasons, such as to finish a project. With this there will be much clearer tasks given to the contract workers. They want you to do a job and focus on that job. In fact, there will be certain aspects of the company that you cannot be part of, such as budgeting and hiring. The same way that the company is not investing in your career, you do not need to invest your brain power in the company’s development. You are only responsible for you and your work — to get in, do your job, and go home.

12) Avoidance of Office Politics

Knowing that you are only there to do your assigned job means that you do not NEED to play office politics. If you do not like how a company operates, then you leave at the end of the contract. Often, you will not even be put in that position as you will not be responsible for any major initiatives. Very rarely will you have to worry about performance reviews (unless you are not doing your work to the desired standard, or you are looking to be flipped to full time). Ideally, you want to at least be pleasant to work with and good at your job to earn a recommendation when you leave.

The rise of contract work across a plethora of industries is not going away anytime soon, but that does not mean that workers should see that only as a negative. The American dream of working full-time at a company for 30+ years has evolved, and workers are evolving with it. When it comes to advancing your own career, contracting work helps you work smarter, not harder.

Summary

The current job market is challenging, with more layoffs than open positions, leading to increased competition between entry-level talent and experienced professionals. In this landscape, contract work has emerged as a viable alternative to traditional full-time employment, offering various benefits and opportunities for career growth. Contract roles provide a way to bridge time gaps in employment, offering flexibility in work hours, location, and projects. They also allow for a diverse range of experiences, potentially higher earnings, and valuable networking opportunities. Moreover, contract work accelerates skill development, promotes better work-life balance, and often includes remote work options. Additionally, contract roles can serve as a testing ground for future full-time positions and provide clearer job responsibilities while avoiding office politics. As the trend of contract work continues to grow across industries, embracing this shift can empower workers to advance their careers more strategically.