Benefits of Contracting: Pros and Cons of Being a Contractor

Thinking of giving up the nine-to-five routine? The world of work is changing rapidly, with more professionals choosing to provide services as contractors rather than taking traditional full-time positions. As the benefits of contracting become more widely recognised, it's no surprise that many are making the switch.

There will always be a need for permanent positions, but the unique value contractors bring to businesses and projects is becoming increasingly sought after. The question is: is contracting the right move for you? Let’s explore the benefits of contracting and weigh up the pros and cons to help you decide if it's time to take control of your career and become your own boss.

Pros of Contracting

Contracting is becoming a popular choice across various sectors around the globe. Let’s look at some of the key benefits of contracting:

Be Your Own Boss
One of the most appealing benefits of contracting is the ability to be your own boss. As a contractor, you have the freedom to choose how, when, and where you work. You can decide which clients you want to work with and which projects to take on, giving you ultimate control over your career path. If you're entrepreneurial, determined, and love flexibility, contracting could be your ideal career move.

Enjoy Greater Flexibility
Contracting offers flexibility that permanent employment often doesn’t. You can set your own schedule, decide where you want to work, and enjoy a better work-life balance. The freedom that comes with contracting allows you to prioritise both personal and professional needs in a way that works for you.

Earn More Money
One of the significant financial benefits of contracting is the potential to earn more than traditional employees. According to The Wall Street Journal, contractors are often paid 20%-40% more per hour than employees performing the same tasks. The flexibility to set your own rates can be a significant motivator for making the leap to contracting.

Cons of Contracting

While the benefits of contracting are clear, it's essential to consider some of the challenges as well:

Job Security
Unlike traditional employees who have a stable salary regardless of the business's performance, contractors' income is dependent on the availability of work. If you don’t have clients or projects, you won’t have a paycheque. However, the increasing demand for contractors across industries offers opportunities for those willing to manage the ups and downs.

Lack of Employee Benefits
Another challenge contractors face is the lack of employee benefits such as health insurance, paid holidays, and sick leave. However, with careful planning and the right advice, you can make provisions for these benefits on your own terms. It’s important to factor these into your rates so that you’re covered.

Community
Working as a contractor can sometimes feel isolating. Many traditional workplaces provide a built-in community that contractors may miss out on. However, at Icon Accounting, we understand the importance of community, which is why we prioritise creating a strong contractor network. We offer numerous opportunities for learning, networking, and professional growth throughout the year.

The benefits of contracting, such as greater flexibility, higher earning potential, and control over your career, make it an appealing option for many professionals. However, it's crucial to weigh these benefits against potential challenges like job security and the lack of employee benefits. By understanding both the pros and cons, you can make an informed decision about whether contracting is right for you.

For more information on how Icon Accounting can support you in your contracting journey, contact us at 01 8077106 or email info@iconaccounting.ie. We’re here to help you thrive as a contractor.