Monday, 23 January 2017

The Pros and Cons of Contract Employment

A contract employment is one who is hired for a fixed period of time, for few weeks, or some months or for a year and for a specified job. As can be seen these days more and more jobs are being offered on contractual basis. The routine 9-5 office job is dying down slowly. If a permanent employee has to do tasks as part of the routine, every day, he may not be too excited to go to work. As per a new study, 40% of The United State's workforce would be contract, part-time or self-employed employees by year 2020. 

The reason being, businesses who are into this trend like the the flexibility and are encouraged by lower costs of part-time or contractual employees. Overall the engagement and employment of permanent employees in general is declining. Please find few of the advantages(pros) of contract jobs and why one should opt for them. 

1. Numerous Opportunities 
Contract employments are rising at a brisk pace than permanent employments. Because, sometimes it is difficult for you to find a permanent job opening to settle in. There is great wealth of temporary opportunities like your interests, experience, and skills, that one might miss out on if they forego a temporary job. You may end up waiting and losing time by looking for permanent, full time opportunity in your job search, if you don't take up a temporary employment. 

2. Temp-to-Perm Transition 
When one is offered a temporary job there is chance of that employment turning into a permanent employment. This is generally called as temp-to-perm employment. Companies can first offer a candidate a temporary role and lessen their risk before testing them out and offering them permanent position, if they fit into they role and if can be part of company's long term perspectives. They can check him out on his skills, see if he is able to fit into the workplace and then take call of offering a permanent position. Basically a temporarily employee can turn into a permanent one if can impress his employer. 

Testing Out Jobs and Employers :
Many employees get super excited when they are offered temporary position in a company. But as the time passes, they feel they are not interested
 in the job or the industry any more. However, if employed temporarily, one can try out and see if they are enjoying the job, able to learn and are satisfied with their job and career. They can then decide on taking up a permanent position in that field and continue to excel and progress in their career.  

Gain New Skills and Experience:
Though you take up different temporary jobs which are similar and pertaining to same field, you will be able to gain, learn new things, acquire skills and gain experience. For example, if you are doing contract job in I.T field, You’ll learn different languages, database management and other computer related knowledge which would add great value to your resume. The consultant or a temp hire is often in a good position to gain new and happening skills and acquire more talent briskly than a permanent employee. This would help you to get hired easily for permanent opportunity as you have plenty to offer in your resume.   

Sense of Freedom:  
For employees, though the phase of moving to freelancing can be difficult, but if you approach it in the right way and are ready to handle little instability at times, you can make even earn more and have greater freedom and control the time to be put In on work. Contract  workers also have more freedom in the way they work as per law. If an employer curtails them and instructs not to use much of employer's resources, then he might be classified as an employee under IRS code. 

Generally businesses that use contractors sometimes do not allow contractor to work on a site or use it's equipment and set a particular number of hours for contractor's job. On other hand a full-time employee must follow strict rules of employer by performing his job as the employer decides how, where and when he needs to work as per the limits of the law. 

Consultants have more opportunity to work with different types of companies at different positions and levels. This offers them to be more flexible and by gaining this experience, they can make use of it to accelerate their career, with more flexibility on offer for future employments to come. 

Demand during Growth:  
Temp Employees are in good demand especially during times when economy is good and expanding. Consultants are often required and hired to work in areas where there is there is immediate ramp-up of any new process or in other words where growth is occurring. When the requirement is urgent and talent pool is short and economy is booming, then there would lot of opportunities for temp hires. It's more like "in the right place at the right time." For contractors. But, when the economy slows down a bit, the company's growth and performance slows down, which would firstly effect the consultants more.  

Disadvantages (Cons):  

1. Job security:
Though there are no of opportunities available for contract employment, one major disadvantage for temporary employees is lack of job security. It it definitely little stressful for a temp hire to be working for an organization that does offer him job security. Though you might be aware that there are opportunities available, you have to keep looking for new job contracts when your nearing the end of current contract. This will decrease the work efficiency and morale as there is always something at the back of your mind and a thought that luring that your future is not completely secure. 

2. Tax Obligations: 
This part of legal obligation has to be dealt with by contractors which sometimes becomes takes some toll on you. If you are full time employee then you are aware and reminded of your taxes. Though you remember the tax burdens with part time employments, it is always a tedious job making all those calculations and filing the return at the end. Its not easy to maintain all the accounts single handedly, which is more greater a task than the work hired for.

3. Burden of Adherence:
A temporary employee though not a permanently employed for a company has to adhere to company’s policy and should be aware of them constantly, which is not easy. It is important for them to maintain companies different confidentiality agreements and expectations. A simple error done unknowingly could lead to unexpected termination and in sometimes to serious law suits. Though you may escape the situation siting lack of written confirmations they are stressful and time consuming. This burden could sometimes lessen your motivation level and hampers the name you made for yourself.

4.Time management issue: 
When temporary employees take up a contract job and also does other jobs in parallel to this there is always issue of managing time. They could end up not justifying completely to any job and end up on the crossroads. Time management is an important aspect and if it's not managed properly it could lead to serious repercussions. If temporary employees waste time and resources they could end up in not finding value in what they are doing.