Making Your Choice between Contract vs. Direct Hire in a Fluid Job Market
With hiring companies needing to be more adaptable and agile when developing sustainable recruiting practices for long-term success, we have witnessed above-average growth in contract vs direct hire. This mirrors research that forecasts the contract staffing market will grow by almost 50% between 2021 and 2030.
What does this mean for your career?
In today’s volatile jobs market, carving out a successful career often involves taking opportunities when they arise. There’s a constant stream of contract roles hitting our books. Could these propel your career to new heights? Is contract hire a pathway you should choose? When did you last give your career a health check?
In this article, we look at the differences between contract vs direct hire.
What is Contract Employment?
Contract employment is characterized by a predetermined period of work. Usually, this is for a specific project, though you may also be hired to deliver specific skills to a team, cover staff absences, or bolster a workforce during seasonal requirements.
It’s a type of employment that lets you select assignments that not only align with your expertise, but also cater to your career goals. You’ll have the opportunity to diversify your skillset, broaden your professional network, and work to a timetable that suits your work/life balance. On top of all these potential benefits, it’s often the case that you’ll earn higher hourly rates than you would as a full-time employee.
Now, you might be thinking, ‘What’s not to like? Sign me up!’
However, contract employment also comes with its drawbacks. These include a perceived lack of job security, and, often, a lack of employer-provided benefits. This can quickly eat into those higher earnings.
Why Direct Hire Jobs Could be Better for You
Direct hire jobs are the traditional foundation of a career. These roles offer consistency of employment and greater job security, with a clear career path. You’re more likely to feel ‘part of something’ with greater loyalty to your team, boss, and employer.
On the financial front, while your hourly rates of pay might be lower than a comparative role as a contract hire, you are likely to receive benefits that include healthcare, retirement plans, and paid time off.
Now you’re thinking, ‘Yep, that’s for me: a direct hire, permanent job.’
But hold on a moment. Have you thought about the restrictions on designing your perfect work/life balance, the fewer opportunities to self-direct your career path, and of the benefits that are part of the standard employment package, but you’ll never use? On top of these disadvantages of direct hire jobs, this traditional career path might also lead to slower career progression when compared to contract roles.
Confused? Let’s break it down.
Comparing Contract vs. Direct Hire
To compare contract vs direct hire, you’ll need to consider the following key elements:
- At the heart of this comparison lies flexibility vs. job security. Contract roles offer the former, while direct hire jobs deliver the latter.
- Compensation vs comprehensive benefits packages. The higher earnings potential of contract roles usually means you miss out on the comprehensive benefits packages provided by direct hire jobs.
- Rapid experience gains vs. steady career growth. Contract jobs can lead to a broader and more attractive skillset, while your skills acquisition in a permanent role will be determined by the needs of your employer.
How Do You Decide Between Contract and Direct Hire Roles?
If you’re in a quandary about which type of employment is best for you, you’re not alone. Many professionals who register with us are unsure of their options and which pathway to follow. Something our recruiters aim to provide is clarity of your choice.
If you’re seeking swift career advancement and variety, contract employment may be appealing. Conversely, if you prioritize stability and long-term growth, direct hire roles might suit you better. The important thing is to focus on what is important to you, including your work-life balance and long-term career goals.
Of course, taking one path does not mean you’re locked into that choice for the rest of your career. Your life changes, and as it does it is always crucial to assess your career options.
Navigating the Transition from Contract to Direct Hire (and Vice Versa)
Whether you wish to move from a contract role to permanent job, or vice versa, you’ll need to plan the journey. Having a second pair of eyes and market insight on your side is crucial. This will help you to understand market direction, current and future opportunities, and how this all fits in with your personal and professional objectives.
We can help you to craft a compelling resume to highlight your versatile skills and adaptability, as well as leverage our network to connect you with the opportunities that align with your aspirations. We’ll help you to understand the benefits and drawbacks of each employment type – because the right opportunity could emerge from either path.
Submit your resume to Lakeshore Talent today, and make sure your career is on the right track.