The Pros And Cons Of Being A Contractor

May 19, 2015 prolog Comments Off on The Pros And Cons Of Being A Contractor

Many skilled employees are choosing to work on a contract or freelance basis these days. Indeed, there are many advantages that come with this way of working. But that doesn’t mean that contracting is suitable for everyone. If you are thinking about becoming a freelancer, you should consider the advantages and disadvantages of this way of working to determine whether it would suit you. Here are some of the main pros and cons associated with contract work.

poup The Pros And Cons Of Being A Contractor

Advantages

Generally speaking, your wage is likely to increase as a contractor. Rather than earning a salary, freelancers tend to be paid per hour or day. This rate usually works out higher than what a permanent employee is paid per hour or day. Additionally, your tax contributions will be lower than an employee’s, which results in a larger sum of net pay.

Contractors have greater control over their working hours than employees do. As long as you meet your deadlines and produce quality work, you can usually choose when you work. This flexibility allows you better control of the work-life balance.

Contractors accept contracts from businesses in various locations within their home country and from around the world. This allows you the opportunity to travel and experience different countries and working cultures. Additionally, businesses will often pay for a contractor’s travel, as well as the costs for corporate accommodation like Ultris Arrow Canyon.

Freelancers often get more variety in their working life than employees do. Once you are well established, you can choose from a whole range of different assignments. Contractors also tend to work for a variety of different clients that operate in different sectors. The diversity of the work keeps it fresh and interesting.

Disadvantages

You don’t get paid in between contracts. At the beginning of your freelance career, this can be very difficult as periods between projects are likely to be long while you try to gain clients and experience

In most cases, you also won’t receive pay for any sick days or holidays you need to take. This can result in many contractors forcing themselves to work when they are poorly or when they really need a break.

You are solely responsible for making sure that your knowledge and skills in your field are up to date. Employees usually receive training that is paid and provided for by their employers. As a contractor, it’s up to you to make sure you are at the top of your game. If you don’t, you may produce unsatisfactory work or lose out on assignments.

You have a greater amount of admin work to deal with as a contractor. This will include dealing with your taxes.

There are distinct advantages and disadvantages associated with contract work compared to working as an employee. After reading them, do you think this way of working the right choice for you? If you’ve still not decided, make sure you look past the advantages and ask yourself whether you are comfortable and willing to deal with the cons of contract work.

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Image Credit: David Martyn Hunt

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