Permanent or Contract? Which is Right for You?

Career Advice, Job Seekers

As the job market becomes increasingly competitive, many candidates have begun exploring various employment options. Permanent and contract positions are two of the most common types of jobs; however, they are both very different options that should be carefully considered. If you’re just beginning your job search and aren’t sure what to expect, here’s a quick breakdown of advantages and disadvantages of both permanent and contract positions.

Permanent positions.

When most people think of a typical job, they think of a permanent position. A permanent job is a full-time salaried position in which you must work a minimum of 36 hours per week. Many individuals opt for permanent jobs, as they offer the most financial stability and benefits, such as steady pay, healthcare coverage and retirement plans. The advantages of a permanent position include consistent pay every month; increased access to professional development within the role; and stronger relationships with colleagues in your industry. Disadvantages, on the other hand, may include less work-life balance due to longer hours and workplace boredom due to lack of a change in scenery.

Contract positions.

Whether you’re experiencing a gap in employment or simply want to earn some extra money each month, there are many benefits to taking on contract work. Contract jobs, otherwise known as temporary positions, are those in which you work for a predetermined period, such as three months, six months, or a year. Advantages to contract work include earning extra pay (in addition to a full-time job); gaining employment experience in a certain industry or area of expertise; and testing out different roles before deciding on a full-time career path. Some disadvantages to contract work may include irregular hours (potentially resulting in lower pay) and potentially no employer benefits, such as health insurance and paid sick time. This can vary greatly between employers, however. In general, if you budget and plan, contract work can be a great employment option during certain points in your career.

Depending on your goals and living circumstances, there are many reasons to consider both permanent and contract positions when embarking on your job search. By considering the factors above, you can determine which type of position is most suitable for your professional goals and lifestyle.