20 Jun 2017
What You Need to Know Between Contract vs. Permanent Roles
At Mane Contract Services, we’ve focused on contract work since establishing our brand, as you can tell by our name. However, we also recruit for permanent roles and have had an increase in permanent recruitment over the last few years.
You may be wondering what the differences are between contract and permanent work and whether there are advantages and disadvantages to both. Each one has its perks, so here’s what you need to know between contract and permanent work before you make a decision on your career.
- Higher wages - Employers do not have to provide the usual benefits such as holiday and sick pay meaning you see more upfront.
- Flexibility – You can fit contracts around your life & you can negotiate the length of the contract.
- Experience – most contractors will work around two contracts a year, therefore, you experience different work cultures and get the chance to work with a variety of people.
- Increased skill set – because of the ever-changing environments, many contractors have a variety of skills they have picked up from moving between jobs/industries.
- Managing yourself – you have the power to pick and choose your roles.
- Tax savings – using an umbrella company will save you time and effort. They will declare your tax and handle all the accounting for you for a fee. Or choose to set up your own limited company, but be aware you will be in charge of declaring all your tax.
- Financially secure – being permanent means you will have a constant flow of income, therefore mortgages and loans are easier to obtain.
- Progression – Although you may not earn as much as a contractor straight away, by being permanent you have the ability to progress through the company and reach more senior roles, which come with a higher salary.
- Company benefits – many companies have incentives to attract staff and retain them such as life insurance, eye care vouchers and discounted gym memberships.
- Routine – with permanent roles you can be certain on your start and finishing time, where your place of work is located and therefore travel time – this allows you to get into a routine. Never underestimate how nice it is to be able to tell your loved ones what time you will be home for dinner.
- A sense of belonging – unlike in contracting work, you will see your co-workers for a much longer period of time and therefore have the chance to build relationships and feel part of a team.