With the constant flow of multinationals establishing their headquarters in Ireland, the contracting market can be a very lucrative choice for IT professionals.
Below are some of the reasons that may help you chose which route to go for:
Why Contract?
Monetary
Contractors will earn an average of 25% more than their permanent co-workers, particularly those with a premium skillset. For example non-management contractors can consistently earn a 6 figure salary, while moving from industry to industry.
Networking and gaining greater skills
Contractors will get the opportunity to work in a wide range of different industries, and while doing so will have the opportunity to network and gain a much wider range of skills, niche skills which can further benefit the contractor in obtaining future employment at a higher daily rate.
Tax benefits
Contractors will have the choice of using Umbrella Companies or as many career contractors do, work through their own limited company which can lead to additional savings.
No ties, be your own boss
Contracting often acts as a great alternative for those who want a greater income with no desire for climbing the corporate ladder. Allowing the contractor to act as their own manager, and select specific contracts and projects of interest. It also allows complete freedom of job location and industry.
Free to travel more – Flexible working
This goes without saying – Contractors have more freedom. Allowing more time for travel and working on personal projects.
Avoiding company politics
Contracts do not have to worry about being tied up in company politics, and the worries of climbing to ranks of middle management. A contract allows you to become more project focused and more forthcoming with management.
Why Permanent?
Job Security
This has to be the obvious one, and the reason many choose a permanent position over a contract role. But this will come in the form of a loss of approx. 25% in remuneration.
Holiday and Sick pay
Contractors are paid for the days they work, and will not receive holiday pay or sick pay, which in turn is countered by the higher remuneration offered to contractors.
Benefits
Contractors will need to arrange their own health care, insurances and pension scheme, as they will not be able to avail of the benefits package offered to permanent employees
Mortgage
One reason why contractors will chose the permanent route is when applying for a Mortgage as there is the guarantee of regular employment.
Conclusion
The choice ultimately comes down to the individual, their goals and current situation. The main reason permanent employees go contracting is because contracting will provide a higher income, less politics, full control over training and more freedom for taking time off.
by Keith O’Loughlin
