When seeking a new opportunity in IT within Canada, one of the first questions you may be faced with when working with a recruiter is: Are you looking for a contract or full time position? Sometimes you’ll know which one suits you best right off the bat, other times you may need to take a moment and ask yourself that same exact question!
To save you some time and research, there is no “better” option by definition – what is most important is to ask yourself what you are looking to get out of your work arrangement. Let us take you through a few pros of each so you can make a wise decision!
Pros of Being a Full Time Employee:
1. A bit more stability!
If there is one thing recent times have proven to be a reminder of, it is that anything is possible! But nonetheless, full time employment does offer more stability including a fixed salary, potential bonuses, annual profit shares and benefits. Also, whenever internal cuts take place, contractors are usually the first to go. As a full timer, you would could benefit from a notice period should you be terminated.
If you’re looking to take that “huge leap” in your career, employees have the possibility of being promoted and experiencing growth within an organization while contractors are hired to hit the ground running, get the job done, and then off to the next contract. Unlike contractors, your relationship with the company you work for is intended to be long term, and fosters your own growth. This is not only beneficial when advancing your career but your employer is also motivated to help you do so in order to reduce turnover. Your advancement is a win for everyone!
3. Balanced lifestyle!
Since you’re an employee, you’ll be tied to certain working hours, and you’ll be notified when you’ll have to stay overtime, so it’s a lot easier to manage your plans outside of work (unless you’re a system admin..)
Pros of Being an Independent Contractor:
1. Money, money, money, monnnneyyy!
Contractors tend to make more in a shorter period of time – what you lack in benefits, you gain in cash! It’s important to define your key needs when deciding what’s best for you. Some choose to work as independent contractors because it’s a great way to make a huge sum of money over a few years.
You can take a few months off in between two contracts to spend some of the summer with your kids, or travel with friends and still be considered 100% employable.
3. You get to explore the market
What’s really great about contracting is the opportunity you have to work with top employers in a relatively short period of time (you want to be sure to secure some extensions so your resume does not present you as a jumper though!) You will build an amazing network, and if you ever want to pursue full time, you’ll be able to make a more educated choice in terms of where you belong!
Those are just a few of the pros of each. Ultimately, your decision on whether to pursue full-time employment or a contract position has to be based on your own unique situation and what works best for you. It is always recommended to consult both a financial and legal professional to identify the tax and legal implications associated with the varying positions. Here’s a link to a tax calculator designed by Ernst & Young to kick off your discovery!