select contract or perm

Know Your Options

Traditional permanent employees work solely for a single employer.
Contract consultants work on a series of different assignments anywhere from a few weeks to over a year in duration.
In the United States, IT consultants are usually full-time employees of a contract consulting firm which may provide benefits.
In Canada, most IT consultants are incorporated or sole proprietors, meaning they are entrepreneurs running their own businesses.
Contract consulting is not simply a job option but a lifestyle choice that is not always suitable for everyone. Consider the challenges and benefits of both contract consulting and a traditional permanent position before you decide which option is best for you.

Benefits of Traditional Permanent Employment

Most traditional permanent employment offers job security and stability.
Traditional permanent employees can rely on a continuous, predictable income stream that rarely decreases.
Traditional permanent employees usually receive benefits such as pension plans, paid sick leave, insurance, and medical coverage.
Companies are often willing to invest in education and training for permanent employees.
Traditional permanent employees belong to an ongoing social group and are members of a “family”.
Traditional permanent employees may have the opportunity to participate in stock option and profit sharing programs.
Many companies manage their employees’ careers and guide them into a desirable career path within the organization.

Benefits of IT Contract Consulting

Consultants are free to select the types of consulting assignments that meet their personal goals and preferences.
Consultants can gain a wide variety of experiences in different corporate and technical environments.
Since consultants control their own careers, they may enjoy a more positive attitude toward their chosen profession.
Consultants are usually encouraged to remain removed from the internal corporate politics of the client.
Consultants may choose to explore short-term opportunities in new communities or even other countries.
Some clients may be willing to pay more for the services of an IT contract consultant.
Depending on business status, contract consultants may be able to leverage allowable business deductions and lower their taxable income.

Challenges of IT Contract Consulting

Contract consultants are not always able to find work when they want it at the desired hourly rate.
Even highly skilled contract consultants may have to endure unpaid periods between assignments.
IT contract consultants often have to take responsibility for their own continuing education and training, including costs of tuition and unpaid time spent to take a course.
Some IT contract consultants must obtain benefits such as insurance or medical coverage on their own or forgo them all together.
IT consultants are typically not eligible for stock option or profit sharing plans.
Career planning and development is usually the sole responsibility of the individual.
On the job, consultants are often expected to be the team expert, someone who can ramp up very quickly and produce excellent results with minimal guidance.
Business and social interaction with coworkers may only last as long as a given consulting assignment.

Consider Your Personal Preferences

Some IT professionals prefer to grow with one organization through a number of years rather than consulting for multiple organizations.
Others rely on the security of a guaranteed work schedule and steady income without the periodic interruptions that may come with contract consulting.
Those who aspire to management may find that there may be fewer opportunities for consulting assignments.
Contract consulting may be best for you if you are a highly experienced, highly motivated individual with a lot of professional confidence and an entrepreneurial spirit.