Numerous reports over recent months indicate that there are increasing numbers of contracting opportunities which are driving ever-growing numbers of staff away from permanent employment. What is causing the demand, and why is it such an attractive option to some?
The Role of Freelancers in the 21st Century British Economy published by IPSE (formerly PCG) highlights the pivotal role freelancers’ play in our economy. The benefits of this flexible workforce for end clients were clearly stated in the report:
- Freelancers liberate businesses from the limits of their internal resource base
- Freelancers enable businesses to manage, in fact reduce, entrepreneurial risk and so promote innovation and enterprise
- Freelancers enable businesses to maximise performance across peaks and troughs in demand
But what about the individual? Why is contracting, similarly an appealing option for them?
Our clients tell us that one of the most attractive reasons for becoming a contractor is the improved flexibility on offer. We hear time and time again how permanent employees struggle to balance their work and home life and contracting provides at least the opportunity to manage this. As a contractor you have the ability to choose when and when not to work and you will have greater control over your hours and work locations. Imagine being able to structure your life in such a way that work for nine months in every 12 and enjoy a three month exotic holiday every year!
Contractors are able to manage and plan their finances in a way that suits them and their lifestyle. Tax planning opportunities means that this path can lead to increased earnings, without the need to climb the heights of corporate ladders, tackling the corporate politics as you go. Contracting often pays more than the permanent market, especially if you are offering premium skills.
Many people find that their permanent role fails to provide the challenges and development opportunities they are looking for. As an employee your development will be dependant of the direction and success of your employer.
As a contractor you have the potential to continually increase your skill set, moving contracts regularly, gaining new skills and working with other professions from whom you can learn. The increased frequency with which contractors change roles means that you are bound to learn more than a traditional permanent member of staff and should lead to much higher “job” satisfaction.
As a contractor you have the potential to continually increase your skill set, moving contracts regularly, gaining new skills and working with other professions from whom you can learn. The increased frequency with which contractors change roles means that you are bound to learn more than a traditional permanent member of staff and should lead to much higher “job” satisfaction.
Gaining new skills and improving your marketability will only make you more attractive to future end clients. You will have an opportunity to create your own “brand” – advertise yourself and your business in such a way that you stand out from the crowd. Having a good CV and a broad range of experience will mean you can pick and choose projects to work on depending on your availability and interest– further opportunity to manage your own time.
Clearly there are some downsides to contracting, however, they are largely outweighed by the benefits. A lack of security and safety net is often cited as a reason not to become a contractor but in recent years permanent roles have equally had a tendency not to be secure, with an increased number of redundancies and company re-structures.
Admittedly contracting will mean you need to plan for the periods between contracts, but these can be seen as opportunities to take a well earned holiday that you craved when employed or as a chance to undertake further training and development to boost your CV further.
Admittedly contracting will mean you need to plan for the periods between contracts, but these can be seen as opportunities to take a well earned holiday that you craved when employed or as a chance to undertake further training and development to boost your CV further.
For thousands of people contracting is an attractive option and as we’ve pointed out it’s not hard to see why.
Have a read why the decision to move from a permanent role to contracting for one of our clients was the best decision they made, read their story….http://bit.ly/1AkiYSK
Do you agree that contracting is attractive? What are your experiences of moving from permanent to contracting? Let us know your thoughts by commenting below.
