Contract vs. Full-Time
With contract and freelance jobs on the rise around the world, it is important to understand the difference between these options and regular "full-time" employment. There are some important trade-offs, both as an employee looking for a job and an employer looking to hire. It is essential that you understand the differences before hiring/applying for a job.
Because the implications of job status vary depending on your location, make sure to research the specific tax/insurance/benefits guidelines for you in your area. If you are based in the U.S, here is a good place to start.
One of the most important factors when thinking about contract/freelance work vs full-time employment is pay scale. Contract workers typically handle their own taxes, benefits, and marketing costs and therefore charge more than in-house "full-time" employees. Because of this, contract workers often are employed for a specific task or time frame, and can have multiple employers. The downside of contract work for the employee is lack of job security and more complicated reporting, with the upside being more work flexibility and tax breaks depending on your location.
For the employer, the upside of hiring a contract worker is easier accounting and the knowledge that the contractor is set for a specific time frame, and can be quickly and easily replaced if the fit is not ideal. Contractors are great for specific tasks that may not be needed indefinitely, but are necessary for things like a strategic pivot, a design overhaul or a seasonal marketing campaign.
Full-time workers have a unique set of protections under the law, and therefore hiring a contract worker may be ideal depending on your company size and goals. The downside of hiring a contract worker is that they (for obvious reasons) often do not feel the same level of loyalty to your company as a full-time employee might, and can leave abruptly - leading to sudden turnover and constant hiring campaigns.
The high turnover rate that often comes with hiring contract workers can be disruptive and expensive for your business. What some companies do is hire contract workers and then after completion of the contract, hire the worker full time if it is a good fit. This gives both the employee and the employer enough time to test the relationship, before committing to full time employment.
Because of the surging popularity of contract work in the remote space, we’ve made it easy to search for contract jobs (by using the search bar in the top right corner of the main page). You can also find all of the current contract jobs on one page by following the link below!
Ready to post your contract job? You can do so here.
Looking specifically for a contract job? Find the latest one’s here