Contract Work vs Full Time: Advantages of Employment Types

Full-time jobs with guarantees provide greater stability to support particular lifestyles. Will there be networking opportunities through the contract job that could lead to a full-time position? If so, a contract position could open a lot of doors your current full-time job might not. You can maintain a low overhead by only providing workstations, benefits, and job security to key employees. You can attract young, mobile talent by offering temporary (and even off-site) employment opportunities. Of course, full-time employees often have greater access to health benefits, profit-sharing, vacation time, and other perks.

Each path in the life science industry has its own set of pros and cons. Let’s take a closer look at some of the pros and cons of working as a contractor contract vs full time salary in the life sciences industry. But if you do continue or choose to remain in a contract role, Orr ensures that contract work is not job hopping.

Costs of contract workers

Contract work can be ideal if you want to gain international experience and see the world. Loyalty – Full time employees have a stronger connection to their organization than contractors on a short term project. Benefits and wages are always a factor in your workforce relations, but a contractor may take on higher paying projects, hopping from one organization to the next. Project Scope – For short term projects that require technical expertise, a contractor may be a more cost effective option over costly training program for full-time staff.

With career opportunities in tech at a record high, the industry is growing at a pace significantly faster than every other profession. Bureau of Labor Statistics, an estimated 316,000 jobs are expected to be created by 2029. Simply follow the money – if you’re paying a person directly for their expertise and their work, they’re a contractor. However, consultants could be paid by consulting companies as full-time employees of those businesses. Hiring a contract employee requires a far different pay structure than bringing someone on full-time, meaning you need to embrace a unique set of trade-offs. A simple way to determine if someone is a contractor is to ask, “How many people employ this person?

Why Do Contractors Get Paid More?

The U.S. Chamber of Commerce notes that independent contractors may be compensated per hour, per project or can even be paid a flat fee after the work is completed. Additionally, the source notes that the contractor is responsible for paying their taxes, including self-employment tax. Employers looking to hire a workforce need to know the differences in compensation, expectation and employer responsibility for hiring contract, part-time and full-time employees. Each of these types of workers has different tax implications, varied responsibilities and separate legal requirements on the part of the employer. While the earnings may be higher, you also have to consider factors such as benefits, income tax, and supplies. If you have a medical condition or require specialized equipment which you don’t already have, financing your health insurance can severely hurt your bottom line.