Common Contracting Misconceptions

During your job search you are bound to get a call about or discover jobs that are contract positions. Whether 3, 6, or 12 months long it seems that these positions are only temporary fixes to your major problem: finding stable employment in an unstable economy. Maybe you know a little about contract work or maybe you know nothing at all; either way, we're here to describe the nuances of contract work and why it can sometimes lead to something better than you would have imagined.

Companies release contact positions for the following reasons: 1. To satisfy a temporary fix or need on a project they are working on 2. To satisfy their need for additional help while simultaneously not extending their budget beyond its means and 3. To solicit employees without the burdens associated with having a full time employee, i.e. unemployment taxes, federal taxes, benefits, etc.

Common contract work misconceptions

1. It is only temporary.

Although the original contract may be temporary, contracts can often be extended beyond the initial end date and eventually may become "contract to hire". This means that if you are a strong enough contractor that the company may decide to bring you on as a permanent employee.

2. There are no benefits.

This is something to discuss in more detail with the company you are contracting through (if you are), but often times the staffing company can offer benefits similar to or better than the end client. As an example, Kforce, a national recruiting firm, offers contractors working for their clients the same benefits as they do their core employees who work for Kforce. You should always discuss this in detail before being represented by a staffing firm for a contract.

3. Contracts pay less.

On the contrary, contracts typically pay more than a permanent position because the employer realizes that you are there on a temporary basis. Often times contractors will be paid around 10% more than a full time employee in the same role. A note to consider is that if this does become "contract to hire" and you go one permanent with that company that you full time salary will typically be lower than you were making as a contractor.

4. Contractors are treated differently.

Often times job seekers believe that contractors will be treated differently on the job. This is a common misconception. A note to remember is that the "new guy in the office" always has a transition period to feel comfortable in a new environment. If you are there on a contract basis you having a shorter transition period to overcome. Most of the time employees, outside of HR, in large offices will not know who is a full time employee and who is actually a contractor.