There are many plusses and minuses in working as an independent contractor or a permanent employee, aside from the tax differences, such as:

• Permanent positions are full-time employment at a company where you can receive benefits and promotions.
• Contract roles are typically done on a short-term basis and do not include employer-provided benefits like healthcare coverage and vacation time.

A contract-to-hire position is just what it sounds like. You work as an independent contractor (usually for 90 days) and then transition to permanent employee status if you and the company agree it’s the right position for you.

Contract vs. Permanent Employment

Each option has its advantages and disadvantages. Contract work offers different opportunities to build skillsets, improve your resume and work when you want to. Downsides include lack of job security and possible red flags you’re unable to hold a job. Permanent employee status comes with the security of a steady paycheck and benefits, and is often the preferred employment option for most workers.

Consider these points when deciding on which one is right for you:

• Job security. There’s a lot more buy-in from both sides when it’s a full-time opportunity.

  Winner: Permanent

• Compensation. Highly skilled contractors often garner high billable rates. Permanent employees enjoy regular paychecks and salary increases.

  Winner: Tie, with Contract having a slight edge.

• Hard skills. Generalist positions are typically held by full-time workers. Highly skilled niche roles tend to be filled by contractors who’ve specialized in different environments, fields and industries.

  Winner: Contract

• Soft skills. Full-time employees tend to be long-term culture fit hires. Contractors face different cultures as they move from position to position and can be challenging to fit in, but tend to be able to navigate them based on experience.

  Winner: Tie

• Job exposure. Contractors often have experience with different work environments, making them adept at understanding the nuances of technology and various work relationships. Permanent employees, though, also tend to be sought and hired based on their industry specific experience.

  Winner: Tie

• Personal development. Full-time employees can be observed for a longer period of time and have access to company mentors and sponsors. Contractors need to prove themselves and gain access in other ways.

  Winner: Tie, Permanent has a slight advantage

• Career progression. No contest. When hired, full-time employees are viewed as a company investment. Contractors usually fill a temporary void.

  Winner: Permanent
 

Looking Ahead

Right now, we’re seeing a lot more contract work in Las Vegas tech industries. That can change as we move into a post-pandemic work environment. In the meantime, it’s a good idea to stay open to every possibility that comes your way. An experienced IT recruiter can help you decide if accepting contract work for the short term can better prepare you for a full-time position as they become available. To learn more, contact Taurean Consulting Group today at 702-529-0378.