They can also be temporary positions, where an employee is brought on to cover a gap in staffing or provide coverage during a peak season. Contract employees typically are 1099 independent contractors who must handle their own payroll taxes and benefits. Or, they may be contract W2 workers employed by an EOR or staffing agency that recruits them into the job.
If so, a contract position could open a lot of doors your current full-time job might not. While you can gain skills and experience through different positions, you don’t want to share too much information. It is important to note, due to the proprietary nature of some work projects, contractors may be asked to sign non-disclosure agreements.
How to Choose Between Contract and Full-Time
To help you understand this better, we will talk about the key differences between an employee and a contractor role in this article. Janet has recently started working as a Recruitment Coordinator contract vs full-time salary in a maternity cover role for a fixed period of 6 months. While both of them perform the same responsibilities, their employment type is governed by different laws, and their pay is different too.
Employers benefit from access to specialized skills, scalability, and cost-effectiveness. Additionally, Jane often sees $15-20K increases after each contract since she’s able to build experience at an exponential rate. Regardless of which option you choose, it’s important to remember that both contract jobs and full-time employment can offer valuable opportunities for professional growth and development. By staying open to new experiences and being proactive in seeking out opportunities, you can build a fulfilling and successful career no matter what type of employment you choose.
The Power of Positive Thinking in Your Job Search
By contrast, full-time employees tend to have more job security, even if they work in an “at-will” hiring state. On the contrary, a full-time employee’s salary is fixed on a yearly basis and is paid monthly or fortnightly, as decided in the contract. A contractor’s compensation usually does not have any benefits such as bonus, pension or leave encashment options.
Your long-term, dedicated employees have a stake in your company and attract their friends and family members to your business. Of course, one of the less-obvious (but very important) benefits of long-term employees is a sense of family and community. They often show dedication to their employers, advocate for them in their social circles, and work for the long-term benefit of these businesses.
