Millions of people are searching for
jobs today and one of the options available to many of them is to be a
contractor. Contract employment has many benefits, but it also has many risks
associated with it. Let's look at the risks and rewards of contract employment
to help you understand whether being a contractor is for you.
No guarantees are associated with
contract employment. For many, this is risk that they are simply not willing to
take. Most people are depending on a regular income and for them, contract
employment may not be an option.
Contract employment often means you risk
being part of the first ones laid off during economic downturns. Contract
employment comes with no guarantee of continued employment, you may be let go
at any time for any reasons. Here are some reasons to consider contract
employment
- Plenty of work - most contract employment opportunities broaden
your horizons. If one client is pleased with your work, they often refer
other clients to you. This can help you grow your business while your
reputation grows.
- Making your hours - one of the best rewards of contract employment
is the flexibility of creating your own hours. Many elect for contract
employment for this very reason. Having the ability to decide when you
will and won't work is one of the rewards that often is the catalyst for
making the transition to contract employment.
- Working at home - while many people strive to reach a point in their careers
where they can work in the privacy of their home, for many, contract
employment is the ideal situation. Contract employment often means that
you don't have to be tied to a "regular schedule" and that you
can work either at an office or from the privacy of your own home.
Risks Vs. Rewards
A lack of benefits is one of risks that
many are aware of when considering contract employment. Those who elect this
route will be responsible for medical benefits, life insurance benefits,
prescription benefits as well as their own retirement accounts. This may be one
of the biggest risks of contract
employment. Most people want to know that they have these benefits if they ever need them. For those who elect for contract employment, they are solely responsible for these types of benefits and often the cost associated with them is great.
employment. Most people want to know that they have these benefits if they ever need them. For those who elect for contract employment, they are solely responsible for these types of benefits and often the cost associated with them is great.
Many people require structure in their
day to day working lives. If you are one of the millions who elect for contract
employment, you must be prepared for an ever-changing role with little (if any)
structure. This is a risk that is commonly associated with contract employment
and for some, this is risk they are not willing to assume.
One of the biggest
risks of contract employment is the lack of feeling like you belong anywhere.
While you may have contracts with a number of clients, often these contracts
are short-term and this may prevent you from developing long term relationships
with co-workers. Those who decide that contract employment opportunities are
right for them often find that fellowship in other areas of their lives.
There are great rewards that are
associated with contract employment. The lack of politics in the workplace,
being accountable to themselves, having the flexibility to turn down an
assignment are high on the list of rewards of contract employment. The most
successful contract employment opportunities offer these additional benefits:
Contract employment is not for everyone.
The risks
and rewards of contract employment are many and are varied. You should
carefully consider all of the risks and rewards before deciding that contract
employment is right for you.