What are the benefits of contracting?

A lady working on her laptop at her kitchen table

It’s great to see that contracting has enjoyed a surge in popularity over recent years – and with good reason.

The fact that an increasing number of businesses are relying on contractors to provide them with short-term access to key skills has prompted more and more people to make the leap from permanent employment.

If you’re considering joining them, you’ll probably want to know what’s in it for you. At Parasol, we believe there’s no greater way to make the most of your potential than by embarking on a career in contracting.

But don’t just take our word for it. Here’s a quick guide to some of the perks you could enjoy.

Higher rate of pay

Does money make the world go round? Maybe not, but it certainly helps grease the wheels!

As a contractor, you can walk away with significantly more money than those in permanent employment. This is in recognition of the specialist skills and expertise that contractors provide. In addition, many businesses are using contractors as a way to tackle a capacity gap that could threaten productivity if left unchecked.

What’s more, if you’re able to keep tabs on the latest trends in your industry, you could end up making even more. That’s because businesses are willing to pay more to secure the niche skills they need.

Greater control

As a contractor, you’ll have the chance to take greater control of your own destiny. In fact, most existing contractors will say this was the number one reason for making the leap from permanent employment.

Contractors can work on a variety of assignments, meaning they’ll experience more diverse roles than their permanent counterparts. Contractors are also able to pick and choose the projects they take on, so they can enjoy a greater sense of flexibility than those in traditional employment.

Admit it, this contracting business is starting to sound good – isn’t it?

Enhanced work/life balance

A third reason to take up a career in contracting is that you’ll be able to better manage your work/life balance. That’s because contractors can take time off between assignments if they want to spend more time at home with the family.

A contractor's work style is never simply 9-5, meaning they can plan their work around their family life and never miss out on important moments. Along with the greater sense of control, many people believe that the work/life balance contracting offers is one of the major benefits of ditching permanent employment.

Do you get this level of flexibility with your permanent job? Probably not.

Guaranteed work

A common myth about contracting is that it doesn’t offer any sort of job security. But this couldn’t be further from the truth.

Research consistently shows that more and more businesses are relying on contractors to secure the skills they need. What’s more, this trend shows no sign of going away, meaning contractors can be confident they’ll have a steady stream of assignment opportunities.

Contractors with sought after niche skills will be even more in demand, as businesses are willing to fight among themselves to get their hands on the best talent. In addition, companies are becoming much more accustomed to hiring people on short term contracts.

The best of both worlds

Another myth doing the rounds is that contractors will end up losing the rights and benefits associated with permanent employment. While that may be true in some cases, contractors who join a compliant umbrella company don’t have to worry as they’ll become employees of the business.

As their employer, the umbrella company will sort out a contractor’s Income Tax and National Insurance contributions, while also providing them with all the employment rights permanent employees enjoy. These include sick pay, holiday pay, and maternity/paternity pay.