Are Contractor Jobs the Future of Work?

People hear about contractors and what they offer to businesses, but what does a contracting job actually entail?

Contractor jobs offer multiple benefits which make them great picks for certain people. However, could they replace traditional employees in the future? Here's everything you need to know about this field.

What is a contractor?

To understand contractors, you must learn about the different types of workers involved in the market. They are:

• Employees
• Freelancers
• Independent Contractors

Employees refer to the official workers of a business. They get paid by the business on an hourly or salary agreement, and they sometimes receive benefits depending on the work. Usually, these workers only hold one job with one company.

Freelancers and independent contractors are often used interchangeably. Both are self-employed and work and can work with multiple clients at a time. The difference is that contract workers usually sign a more long-term agreement (instead of one-off projects) and get paid handsomely for it.

What kind of roles are available as contract jobs?

Businesses offer various jobs to contractors based on what they need. Such as...

• Writing copy
• Developing code
• Customer service
• Designing merchandise

Basically, if a job can be boiled down into individual tasks, it might make sense to hire a contractor to do it. Plus, the business will likely save money by choosing this route.

Pros and cons of contract work

Any type of work has pros and cons, so you’ll want to understand what contracting work offers. Doing so will make it easier to weigh out the benefits and drawbacks to help you determine if you're going to get involved with the industry.

Pro: Flexible Schedule

Choosing your own work hours gives you a lot of control over your time and structuring your work-life balance. No two days need to look the same, and while it can feel like a lot to juggle at first, you’ll find your rhythm in no time.

Pro: Fewer Meetings

When you work for a company within a team or department, it’s crucial to have everyone on the same page, and this usually happens in team meetings. As a contract worker, you’ll likely get to forego these meetings and, at most, have one or two consultations with your clients. This allows you to stay on track and focused on your workload.

Pro: Multiple Contracts and Clients

Contractors don’t have to stick with one or two jobs. Instead, they can reach out to multiple people, offer their services, and work with them as they see fit. Doing so helps them make more money while expanding their opportunities to seek other clients.

Con: Lack of benefits

Since you only work for the business and not as a real part of it, you don’t receive health or retirement benefits. You also don’t get paid vacation, so you must let them know when you can’t work. Some companies also won’t allocate funds for training or other development activities.

Con: Less support and training

They also expect you to be a good problem solver — most contractors are subject-matter experts, which is why they can do their specific tasks better than most. However, if you're new to a field this will mean you'll have to get used to fending for yourself and learning on the fly.

Con: Inconsistent work

As has been mentioned, most contracts range from 3-12 months, so job security is not guaranteed, and you'll need to get good at getting your name and work out into the world if you want to keep the money coming in.

Do companies like contractors?

While contractor jobs offer some great versatility, you’ll wonder if companies like to hire contractors. After all, if employees are the standard, why would they hire this other type of worker? Even though it varies between businesses, most like contractors for multiple reasons.

• Cheaper to hire
• Require less paperwork and legal protection
• Simpler and faster hiring process

Companies appreciate how they don’t have to spend as much money on contractors. They can focus on assigning specific tasks and only budgeting for them, instead of also having to pay for all of the unused hours in between.

Plus, there are fewer tax forms and human resources processes. Which also makes it easier to bring on international candidates for certain roles. This massively expands the potential talent pool, which could give any sized business a significant edge in the market.

How to become a contractor

To get started in the contractor industry, you must stand out. It'll take more work than simply following the employee route, but the upside could be worth it.  

• Develop a marketable skill
• Create a website and portfolio
• Find online communities  

You won’t secure jobs if you can’t find a focus or niche. People want to hire contractors who excel at their work, so the more you can focus on a single industry or skill set, the better off you'll be.

You should also create a website to display your skills to people quickly. The website can incorporate information about your credentials and even include a portfolio. Doing so makes it easy to link your work to potential clients and secure more contracts.

There is an evergrowing library of resources and communities for contractors. For example, you can use LinkedIn or FlexJobs to find contracts and also learn best practices from more experienced leaders in the field.

You can also read sites like this one to learn how to advance your career. We focus on giving you the best tips, tricks, and truths to help you get to where you want to go!