Salary employees might be paid a set amount per period, regardless of the exact number of hours they work. Either way, however, both employee types will receive their paycheck in accordance with a consistent weekly, bi-monthly or monthly schedule. For this reason, your time frame and desired schedule may not necessarily be achievable when working with independent contractors. It might be necessary to either adjust your project timetable (which could cost you time and money) or hire a different contractor to complete the full scope of work on a given project.
Many freelance independent contractors work part-time or non-traditional hours, and most work for more than one client at a time. Putting together the right team when you’re starting and growing a small business can be a daunting task. And having to choose between hiring contract vs. full-time workers introduces a whole new set of factors to consider.
Full time vs. contract
Initially, contractors that are still trying to “get their name out there” and grow their business won’t really have this commodity. As we’ve mentioned previously, as a contractor, you can expect to get hired either for a specific project or during a specific period. Previously we’ve only briefly mentioned some factors that emphasize the difference between contract work and full-time employment. Now, we’ll dive a bit deeper into some of these main differences to try and provide a clearer picture. Needless to say, while both of these options do offer some unique benefits, deciding between the two will greatly depend on various factors. So, to make the best decision, you will need to determine your financial needs, think about the career and lifestyle path you wish to take, and carefully assess the pros and cons of both of these options.
These experiences help to deepen your experience and add breadth and depth to your resume. Experience in various industries can help you diversify and find opportunities across sectors. Contractors have the choice to work for as many different employers as they want.
Are Contract Jobs Gaining Popularity?
The differences between these types of employees typically lie in the additional benefits employers provide. Full-time workers trade off less flexibility for greater job security (though employers can provide certain perks like 9-80 scheduling). Do you want to work in an office or have the freedom to choose where you’ll work from? Now that you have this detailed guide of how every business relationship works, you may find it less confusing to make the final decision. The report of Intuit 2020 says that by the end of the year 2020, 40% of US employees are working as contract workers. When another client offers a better fee for the services being rendered, there isn’t a guarantee that your favorite contractor won’t leave you and go to your competitor for higher pay.
Written contracts set out the rights and obligations of each party, and reduce the risk of uncertainty. Many businesses are put off by the cost of having a contract as well as terms and conditions drafted by a professional – but it far outweighs the potential cost contract vs full time salary that doing business with them could threaten later. The reality is that there isn’t a lot of job security when it comes to contract work, and although the pay really depends on your level of work and the field you’re in, it can often be as low as minimum wage.