Contract VS Permanent Jobs Offers

SH, an experienced recruiter and career consultant, has addressed some insights about contract and permanent jobs. This is good article to know more about the difference between contract and permanent, especially fresh graduates.

Through my experience, whenever I share with my candidates that the job offer is a contract position, most of the time, the reply that I received is “I prefer permanent job”.

Of course, most of the time if an opportunity arises, most people will choose to have a permanent job rather than a contract job. As contract does not promise you a secure position with the organization and also the company’s benefits of bonus, medical benefits, allowances and etc instead. There is no right or wrong if one prefers only permanent job.

Let me share with you based on my knowledge and experience. There are some benefits of being in contract.

Who should consider contract offer?

1. If you’re not sure which field is suitable for you and has no clear direction in your career path.

2. If you’re testing out the job applied and not sure if the company or the environment is right for you.

3. If you have plan to explore new opportunities that are not related to your last employment, e.g : you’re a secretary and decided to explore your passion into marketing field.

4. If you’re taking overseas posting, it is also wiser to consider contract because you’ll never know if the job scope, environment, company or the culture is suitable for you.

5. If you’re keen to join organization such as Intel for example, but you do not have the result that they desire. Consider to take a contract as a stepping stone and a door of opportunity to prove to them that you have what it takes. Once such management sees your talent, they will usually consider converting your contract to a permanent offer.

6. If you’re on IT jobs or service related job like call centre, sometimes, considering contract is good as it gives you the opportunity to explore more than one multi national company’s working culture, environment and experiences of the system they use. Once you found “The One” company you think you love, then you can negotiate to convert your contract to permanent if the opportunity arises.

7. If you have no other job offer that comes along, consider taking contract to fill your experience and build your skills rather than waiting for just permanent offers.

8. Matured job seekers who want to continue to contribute their experience and skills to the organization or field.

Benefits of contracting

1. It should pay an average 20% more than permanent employment but some agencies don’t practice this.

2. Allow you to get your foot into established companies and make contacts.

3. Help you build your skill levels at various companies in a shorter amount of time.

4. Present varieties and flexibilities along with new challenges.

5. Allows you to “audition” new positions, companies, bosses and corporate culture before committing to a permanent job.

6. Helps you to avoid the usual office politics.

7. Allows you to find your passion and career path without being a “job hopper”.

Setbacks of Contracting

1. A contract offer pay may be higher, but he or she may not be qualified for share options, bonus and any other benefits common to ‘permanent’ staff.

2. A contract job will not classify you to be an official employee of the company, but rather of the employment agency, so benefits will come from the agency.
3. There are tendency that your salary may be lower compared to permanent staff due to some agency may offer lower to candidate from the actual offer given.

4. You don’t get to master certain skills due to short duration of the contract.

5. Limited access to certain important information and reference to be made to reporting supervisor for decision making.

6. And, at least initially, you probably won’t be part of the long-term plans of the company but rather will be responsible for projects which utilize your specific skills. “Get in, get it done and move on”.

What are important questions to ask when taking up contract jobs?

1. How this contract offer will benefit me in terms of experience, opportunities and skills learning?

2. Are there opportunities for me to take up new challenges with my existing skills?

3. Is this the company that I dream off getting into but so far, my direct application has not been accepted even though I have what it takes to do the job? Can this be the golden opportunity?

4. Will this contract position provide me with the opportunity for me to try out the job and find out my talent or passion?

I hope my sharing will assist job seekers to open their minds to contract positions. You need to be ready as I see the employment trend of offering contractual jobs in the future. Even now, many SMIs and MNCs are offering contracts positions rather than permanent jobs.

All the best!