As someone who may be new to the workforce due to just graduating school, or moving to a new country, or coming back from an extended leave, you may be wondering your options for reentering the workforce. Although the traditional path may be to find permanent, steady income employment, there are other options. Outlined below are the differences, pros, and cons between permanent and contract work.
Permanent work may be an attractive option for you due to its stability. As a permanent employee you are generally provided the comfort of health benefits, any at work amenities offered (free lunches, work phone, etc.), and steady, predictable income. Pros for this option include but are not limited to:
- Full-health benefits
- Potential for annual and quarterly bonuses
- Potentially better work environment as greater relationships are built with coworkers
- Company events (quarterly outings, holiday parties, etc.)
Although there are benefits in being a permanent employee, some factors may seem limiting based on your lifestyle. You are limited by the amount of vacation time given, you are likely to only work in one team for the majority of your time, and there are very few items that you can write-off for tax purposes. Some of these cons may be the opposite if you were to look at contract work.
Contract differs from permanent work in that you are only employed for a fixed term of time to complete some sort of task. You do not receive the same benefits as a permanent employee would because you will most-likely not be at any one given workplace for more than a year. Some benefits of contract work include but are not limited to:
- Higher pay rate because employer does not cover benefits or any at-work amenities
- Chance to work for multiple different teams at different work places in any one year
- Able to write-off work-related possessions and expenses for tax purposes
- Amount of time-off in a year is at your own discretion
If you are the type of person that likes change and moving around, contract work may be the right route for you. Although you will have to set up your own insurance and health and benefits plan, you will receive higher pay overall when compared with being a permanent employee.
For more information on the differences between contract and permanent work, and what it could mean for your taxes, check out Bizfluent’s breakdown here.
Regardless of what path you choose, IT/IQ is happy to help you find the perfect opportunity and educate you on what option will work best for you. Reach out to one of our recruiters today or apply for one of our positions available here!