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Which is better contract or permanent positions?


Have you ever wondered which option is best suited to your needs – contract or permanent positions? Most people prefer to work in a permanent position due to job security. However, after some time in the job you may feel trapped, a contract job maybe a better solution for you. Here are some advantages and disadvantages of both.

Advantages of a contract position

Contract / Temporary jobs can offer good money for the contractor because the employer has to pay a premium to cover on-costs such as annual leave, sick leave and public holidays. As a contractor, you should put aside the 20% loading in a separate bank account so you can take leave when you need it and still be able to afford your day-to-day living expenses. Contract positions help in gaining more work experience because a person is potentially changing roles after short intervals and thus gets the opportunity to work in different work environments which can offer a good variety of work. This may not suit you if you don’t like learning new tasks. Some people prefer to do the same thing everyday and get scared of learning new technologies, new routines and meeting new people. Also bare in mind that some temporary roles can be extended if the project becomes bigger than originally expected. I was once in an 8 week contract role that ended up lasting for 9 months. If you perform well and fit in with the company culture, the role can end up lasting longer than originally anticipated.

Advantages of a permanent position

The biggest advantage of a permanent position is that your job is secure but in contract positions once the contract ends you are suddenly unemployed. This can be managed by contacting your employment agency in advance and asking them to look for another contract job to start when the current role finishes. With permanent positions you are entitled to many benefits like maternity leave, overtime, annual and sick leave, public holidays, superannuation and workers compensation. And of course, you can meet good friends over the years in a full-time role. After some time in the role, there are usually good opportunities for job promotions within the organisation. They prefer to hire internally first before advertising externally. This is especially the case for large organisations where potentially they may even have opportunities for transfers overseas. You also have the benefit of learning systems and procedures which can be invaluable experience when you either start your own business or start work in a smaller company where systems and procedures are non-existent.



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About Sylvana Livissianis

1 Comment

  • Sylvana Livissianis says:
    Mar 28 2014 5:22 am Reply

    I totally agree that contract positions can provide so many career opportunities. If you are not ready to fully commit to a company at this stage, you can opt for contract work and when you are ready with the required experience and skills then you can find a permanent job.

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