Full Time Employment vs. Contracting/Freelancing
Which Side Are You On?
The classic debate between the ranks and roles of all digital professions, these days, is as old as the dot-com crash itself. The permanent role vs. contracting/freelancing foray. In the careers of many who enter the game of digital, either or both roles have been experienced. Are the freedoms of one but a mere hindrance to the other? Is the clock of completion and bounty hunter antics the call of many in our space?
As the restless warriors that surround that game, We #TechMasters vary on this subject based on our personal exploits. Whether it’s a 6-month lift and shift, to that dream position at the tech company next door, we’ve been there enough to split the difference.
Go Full Time!
Full time gigs are probably the best bet for building the beginning of a career. They allow you to be mentored by people around you with more experience, and give you more time to focus on a given problem to solve. — Brian Irish
I agree with Brian’s point. Problems to solve — the best way to level up in a company. Particularly for a beginner in their vocation, mentoring becomes organic. I also disagree because permanent roles do not always have to be geared towards the new start. This can also be considered for those who have already gone down the path of freelancing and contracting, and now they’d like to be more stable. Other amazing benefits include:
- Less risk and uncertainty.
- Financial trust with banks, loaners, car dealerships, etc…
- You have a built-in retirement and protection plan (for example, in Canada all full-time employees contribute to a federal pension plan, and employee insurance in case they lose their job).
- Health benefits (in most cases).
- A clean separation between work and play.
- Being surrounded by people, which may boost your energy if it complements your personality.
- Perm has its own challenges, but in turn: the rewards are just as great.
Permanent roles usually come with these goodies, but the treat is in the people, I usually find. Some people I have met, and still keep in touch with, were from perm role exploits more times than the Wanted: Dead Or Alive life that is contracting.
I agree with the uncertainty to an extent because of skill. One should always be prepared when it comes to a permanent role. Unexpected firings and layoffs can happen. In both instances, the network that one attains and body of work is crucial to the success regardless of direction. There are ways to keep original work through paying attention and negotiating the details of the project/works.
Work life balance? well, I guess that’s true in the respect of perm roles, but I also believe that this is a product of the individual. If one cannot handle the responsibilities given to them in a day, there should be a conversation to be had, at work, for the balance. In my experience, there have been instances where the job takes precedence and, in turn, takes a toll on those who needed “extra time” to complete a project. Some of those stories became horror stories more gruesome than that of a certain Crypt Keeper that scared me straight. Though in some occurrences, overtime cannot be helped, but if it becomes a habit: there has to be a discussion.
Contracting/Freelancing: On the Fly — Living on the Edge?!”
The only real difference between [full-time] and contract is benefits and bonuses.
— James Wilkinson
It’s unanimous with the #TechMasters community: one’s reputation must be built through work first before one starts down the freelancing path. After a certain point, freelancing/contracting might be for you even after 2 to 5 years of full-time fun. All in all, it’s a decision made by yourself. The benefits can intrigue, such as:
1) Technology moves faster than organizations can keep up with them, so if you want to pickup new trends and be on the cutting edge, contract work will be the only way as organizations are most likely to invest in a new technology for a short lived term before creating a full-time position.
2) Shorter commitment, higher rates, more money.
3) Back to #1, it typically doesn’t look good if you’re changing full time positions often.. but in tech, you will most likely want to move after a year for whatever reason (salary, technology, politics, etc…) so contracts don’t make it look like you’re a job hopper.
4) Tax write-offs
— Yan Shcherbakov
Freedom. It’s a great thing in your work. Especially there. What projects to choose, what framework to use, where you can work. Freedom, freedom, freedom. Sure, yet there’s a price for everything nice. Outside of the office, you are the responsible one for the off-court things, too, such as tax prep and finding your next gig. The latest trends seem to point towards this methodology that adapts on a project. This witchcraft is called agile. New frameworks can be added into projects. The write-offs are one of the highlights where trips, meals, training, and even supplies, can be written-off deductibles.
Contracting is somewhat similar to Freelancing. Sometimes, this is controlled by a middle man or third party. Employment agencies or recruiters (shudder) would be responsible for the off-court items that are contracts and payments between the provider and the company. You’re an employee, just an employee to the recruiter’s firm. The firm makes a certain percentage for themselves, paid by the company they deal with in order to employ you. You’re having to undertake looking for the next line of work usually since the recruiter may not have anything at the ready. Networking is always a best friend for handling the issue, whereas relying on the sole recruiter, for positions and the aftermath strategy, could fail you in the process. After at least 50% of the duration, it’s best to have some idea as to where the next adventure will begin. It’s the boy scout’s motto of “always be prepared” because of the high chance of uncertainty. The variety of recruiter firms has changed in the last decade because of various places looking to offload their business to capable hands that do not need to be a member of their organization.
There are write-offs and taxable benefits to obtain, yet when it comes to huge purchases, this might not be the best route when approaching banks for those special lifetime investments (e.g. house, car loans). Business tax is also a hit-or-miss depending on how well-advised one is while approaching the subject after a year of freelancing. Audits can happen, and the financial history should be ready at any time for this.
Flexibility with Freelancing
In my career shelf life, I’ve seen resources get extensions for years. The contract’s flexibility can be spelled out in the agreement itself. Freelancing, in itself, can happen in the case of several different instances. One being just bringing in a secondary income or a hobby.
In that instance, contracting/freelancing as a side job is another route. The client knows that this is happening after hours, and will sometimes understand the plight of the said freelancer/contractor, but the estimates would come from the one providing the service. I would stress that there would need to be an understanding of what one is capable of doing in this and any capacity. It comes along with the responsibility point. The ability to set boundaries is an essential skill to have to be successful on either freelancing and permanent. Weekend and evening are mostly expected in the after-hours contracting/freelancing position.
In the end, a decision to choose either or, or even a place to work with, should boil down to the ecosystem and environment chosen. Forget “working from home” — which is close to being a norm that even bigger corporations are making a standard practice. As in, make this benefit less of a priority. It doesn’t matter if you can while working on yet another vaporware, 2-year shelf life app that may need to be redesigned the minute it hits production. If you’re into building the next greatest app or the soon-to-be ad campaign, chances are there is always something for everyone and a company for everyone. Fit totally not needed or included.
Further Reading
Here are some items to add to the conversation and the choice between both:
- Are you a contractor or an employee — The Balance
- Should I Be An Employee Or Independent Contractor — Forbes
- 14 Ways To Juggle Freelancing While Working Full Time — Sitepoint
- Contracting Vs. Freelance Vs. Full-Time — Udacity
Choose Your Own Adventure
I’m curious to see what your thoughts are on this subject. Contract/Freelancing or Perm? Join the conversation at TechMasters.chat! We discuss something new every week and will feature a write-up like this one afterwards.
