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Contract versus Permanent

By p.hodgeson ·
Which is the best....in all aspects.Or is it a case of certain jobs are always going to be a contract......consultancy etc..?
Any views or ideas on this.

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My Take

by Oz_Media In reply to Contract versus Permanent

When I was a full time IT employee, I'd get paid $54,000/yr (asked for $64,000). My time was billed out at $150.00/hr to our clients.

As a consultant, that same firm now pays me $64,000/yr plus I have another smaller contract at $21,000/yr. When I outsorce to different companies, I charge $95-$120/hr which saves THEM money over the previous $150/hr plus the cash goes into MY pocket instead of paying for the offices heat and light overhead.

In my music business, I have just shut down two US offices that I ran from packaged offices in Oregon and Califirnia. THe two staff I used to pay under contract as scouts, can now earn more just doing thier own thing rather than me paying them after removing office overhead.

Yes, doing you own thing always pays more. As long as you are motivated enough to start your own business and work hard to build it, you'll have no problems.

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Mixture is best

by worker bee In reply to Contract versus Permanent

Contract work is best for acquiring new skills, pays better, and usually has better working conditions.

Permanent work is best for getting experience working on a big project from start to finish and for getting deeply into a particular techology.

I think it is best to keep switching back and forth between the two.

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Mixed blessings

by wordworker In reply to Contract versus Permanent

I was laid off from a good full-time job two years ago and landed a nice contract gig that was supposed to last two months, has lasted now two years and hopefully will be extended into '04. The upside? Nice hourly rate. The downside? No benefits (I have health coverage through benefits from my wife's $11/hour job though). I also have a couple of writing contracts that throw a few bucks in the till every month, and I have several consulting clients that dribble in a money every month. I'm making more money than I ever did as a full-time employee of any company, but there's a tradeoff. No accumulated paid vacation or sick time, no 401(k) matches. On the other hand, I'm master of my own schedule. LIke Oz said, if you're motivated, you can make more $$$ by working for yourself, setting up your own savings and retirement accounts and the like.

The thing I hate about this Fortune 500 company is that every year at holiday time they make you sweat and wonder and worry whether your contract is going to be extended into the next year.

So if you consult/contract, be prepared for this reality: You're just a piece of meat, a line item on somebody's spreadsheet,and they can whack you at any time.

I kind of missing being a FTE and would consider going back to "captive employment," but there just aren't openings as there used to be.

Whatever you do, SAVE SOME MONEY! You have to pay your own taxes, pay yourself when you take a vacation, and....you may run into a dry spell here and there.

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recruiters advice

by coyne_n In reply to Contract versus Permanent

This is a tricky question. Contracting allows you a great deal of freedom and constant exsposure to new technologies and management philosophies with also a high level of uncertainty about next assignment. But corporate america has shifted and there is no such thing as job stability in a permanent assignment as well. So my advice go for the contracting it is more lucrative but just hire a good accountant

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