Contract Work vs. Permanent Employment — 3 Areas of Debate
Consider benefits, compensation, and office culture when weighing a contract position against a permanent one.
Articles published February 7, 2019 by Mike Rice
There’s a lot to consider when trying to decide if becoming a contract employee is right for you or if you should take that full-time position. Getting paid, benefits, ability to grow, paid time off, networking opportunities for professional growth… the list goes on.
With nearly two decades under our belt as a consulting company providing project and business management solutions, Aureon Consulting (formerly Midwest Project Partners) offers clients a range of business support solutions to meet their growing needs. We’ve built long-standing partnerships with businesses across industries, enabling us to better educate you in the debate of contract vs. permanent work.
The choice, however, is up to you. Here are three key areas to consider when trying to decide where you fit in the contract vs. permanent employment discussion.
Compensation: Salary vs. Hourly Pay
Working full-time for a company enables you to have a steady paycheck — the same amount of money paid out at the same time for as long as you stay employed.
Although job security is nice, full-time employment doesn’t always allow you to expand your income. You may have to wait until the annual performance review hits to ask for a raise. Even then, you may hit a pay ceiling for your position. In addition, as a salaried employee, you may not be getting fairly compensated for all the hours you work.
As a contract employee, you get paid for all the hours you work.
Aureon consultants benefit from flexible payment arrangements, including W-2 hourly, 1099, and Corp-to-Corp status. There may be more frequent opportunities to negotiate pay when switching from one contract position to another.
Full-Time vs. Flexible Benefits
Permanent employment often comes with a benefits package through your employer. This may include health, life, dental, 401K, disability, sick time, and vacation.
Those benefits are wonderful, but what happens when you’ve used all your paid time off and your kid is sick? Do you have the flexibility to take a vacation day when you choose, and not when it works best for your employer? Often, no.
Corp-to-Corp and 1099 contract employees are not eligible to receive benefits.
Aureon Consulting W-2 consultants have access to many benefits — health, dental, and life insurance; 401K, short and long-term disability plans; as well as training and development! In addition, they have flexibility in taking time off.
The Pros and Cons of Office Culture
Working in a permanent position allows you to build relationships with coworkers in your office and learn from them in your area of expertise. You can also develop a career path within the company and stay motivated by keeping an eye on what’s to come.
Office politics can be a positive or negative aspect of permanent employment. If you’re not built for the game or don’t have the desire to climb the corporate ladder, it can be difficult and even stressful to navigate the ins and outs of the workplace. When working in a permanent position, there are times when deliverables aren’t clearly defined. You may feel like you’re treading water while waiting for an opportunity.
As a contract employee, you come in with clearly defined deliverables. You’re there to get to work on the task at hand. In addition, you don’t have to worry about falling prey to office politics and the “get ahead” culture that often comes along with it.
Contract employment can give you access to businesses of all sizes across countless industries. This means more job flexibility and opportunity. Not one for variety and change? Then permanent employment is probably your best bet.
Aureon Consulting consultants benefit from regular networking opportunities and market access. They are able to consult with seasoned industry professionals.
Expanding Career Opportunities at Aureon
Aureon Consulting’s history in the marketplace and reputation with businesses is unprecedented. It gives you an instant leg up on the competition.
In addition, Aureon is not only a company in the know but it is also one that is growing. We currently serve clients across the nation with a presence in 48 states.
As we continue to expand our business, your opportunities will expand as well.
Learn more about what makes Aureon Consulting the right choice for you.
Explore an opportunity with Aureon Consulting by contacting us today at 515-225-8860 or visit us at Aureon Consulting for more information.