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Contract vs Permanent Jobs in Technology

Posted on December 2022

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The Technology sector offers many employment opportunities, some of which are permanent, whilst others are on a contractual basis – and there are benefits to both. For those unsure whether to apply for one or the other type of role, let’s explore the benefits of each and paint a clearer picture for when the time comes to make a decision:

Contract positions and their benefits

Contract positions in the Technology sector are available for a variety of levels, from entry to mid-level through to senior. Contracts could be ranging from a few days or weeks to a few months or even years. The many benefits of contract-based jobs vs. permanent positions may well be the deciding factor in your decision to apply for a contracted role. Such benefits include:

  •  A higher pay scale: Contract roles usually pay more than permanent roles, often by 30% or 40% more. By focusing on contract positions, you can keep your earnings higher than you would be able to in permanent positions.

  • Greater flexibility with work hours: In most contract positions in the Technology sector, you would charge only for the time you work. This should offer you greater flexibility with your work hours as you have the potential to negotiate different hours or days off.

  • Greater freedom of movement within the sector: Highly skilled, qualified, and experienced Technology professionals are in demand across the world. As a contractor, you have the potential for greater movement within the industry, not only in terms of working on a greater variety of projects in different teams and industries within the sector, but also potentially working in different states or countries.

Permanent positions and their benefits

The majority of job offers in the Technology sector are for permanent positions. The benefits of those positions are an important factor to consider when looking at contract vs permanent jobs. Those benefits include:

  • A defined career path: A permanent position offers a defined career path at your workplace, giving you potentially greater chances of advancing within your chosen field.

  • Greater job security: Permanent jobs offer greater job security and income stability than contract positions.

  • Company benefits: Company benefits are a potentially important factor to remember when considering contract roles vs permanent positions. As a permanent employee, you would receive a variety of company benefits, which in lots of cases are not offered to contractors. Those benefits include sick pay and holiday pay, health insurance, retirement benefits or a pension plan, and even stock options.

  • Some flexibility: An increasing number of jobs in the Technology sector offer greater workplace flexibility than before, such as remote working, flexible hours, and hot-desking. This allows you as a permanent employee to enjoy a level of flexibility that previously was enjoyed almost solely by contractors.

  • Less personal admin: Your employer would take care of at least some of the administrative work, such as that regarding taxes, whereas contractors usually handle all their admin.

Making the right choice

Deciding between a contract vs permanent job requires careful deliberation, especially if you want to progress your Technology career. Considering the benefits of both and identifying what is most important to you, such as greater freedom and flexibility, potentially more variety, and higher earnings or greater job security, company benefits, and a more defined career path, can help you identify the best route for yourself.

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Looking for a permanent or contract position across Technology? Glocomms is a leading talent partner specializing in multiple sectors, including Cyber Security, Development and Engineering, and Data and Analytics. We also offer our candidates industry insights, recruitment tips, and career advice.

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