From better profits to flexible timings, life as a contractor can be excellent. However, it can be troublesome not knowing where/when your next contract is coming from, spending more time away from the family, IR35 changes and not enjoying multiple employee rights are some of the day-to-day concerns of contractors. At the point when things get truly extreme, it can make numerous contractors question whether they should abandon contracting for getting back to permanent work.
Reasons behind moving back to a permanent job
So, let’s talk about what are the common factors that may drive this dilemma amongst contractors?
Overworked and bored contractors
Contractors who get high pay continuously make a solid effort to remain at the top. They are ceaselessly preparing themselves for the most recent trends happening inside their field.
It is not at all like a permanent job, where you get weekends off and getting on the job training is a prerequisite. It can become disappointing when somebody has to do the same type of work again and again for different contracts.
The role security in the contracting world is comparatively lower and relies upon a contractors capacity to stay updated with the most recent skills and trends and the ability to sell themselves and the duration of the project. Security can turn into a concern for those contractors who get fewer contracts during market falls.
Different work areas
Not everybody is lucky to find a contract based job close to home and family. You’ll have to move to different places to complete work. It can be tiresome and especially tough for those people who might have the responsibility of someone to take care of.
Problems related to permanent work
Now that you’ve seen one side of the coin, it is our responsibility to show you the other side as well. Here are some common issues that will arrive when you move back to permanent work.
In a permanent job, you’ll not earn the amount of money you were getting during contractual work. The amount of salary will be fixed and there will be a set time period for appraisal. Moreover, you may have to rely upon other benefits like - health insurance and pension.
No extra money for working extra hours
You may be required to stay at work for extra hours to look positive on your next appraisal cycle or bonus. This may be hard to become accustomed to, since in contracting you know precisely the time and money; you will get paid.
You can not take holidays as you wish. There is a set number for that. Including bank holidays, you’ll enjoy 20-25 holidays a year with a cap each month. For example, many companies offer just 2 paid leaves (1 casual leave and 1 sick leave) in a month.
What should you do?
Security and frustration issues usually come into the choice while thinking of moving back to a permanent job. You will obviously get different advantages, including sick pay, permanent location, etc, however, they aren't so considerable.
Numerous contractors keep taking contracts for their entire life and never return to permanent jobs as age is not an issue in contracting, and prominent firms invite the mastery and experience of contractors. Also, the other viewpoint to consider is IR35. Right now, if you fall under IR35 and can get a contract outside of IR35 then you will accomplish an increased rise in take-home pay, without raising your rate.
If you’re still wondering about working as a contractor or doing a permanent job, then get in touch with our experts for the excellent advice.
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