Contracting versus permanent employment
#1
Contracting versus permanent employment
Does anyone have any insight into the pros & cons of either contracting or going permanent in the IT industry in Oz (Melbourne specifically)?
Here in the UK, permanent employees are often paid much less than contractors. Can the same be said for the IT industry in Oz?
- CDM
Here in the UK, permanent employees are often paid much less than contractors. Can the same be said for the IT industry in Oz?
- CDM
#2
Re: Contracting versus permanent employment
Cons are being the first to go in lean times and not having any feeling of permanence.
#3
Re: Contracting versus permanent employment
Pros of contracting are just the same here as in the UK. You get a far better rate when contracting (surely the only reason people do it ). There are some other financial advantages, too depending on how you're set up.
Cons are being the first to go in lean times and not having any feeling of permanence.
Cons are being the first to go in lean times and not having any feeling of permanence.
- CDM
#6
Forum Regular
Joined: Feb 2006
Location: Melbourne
Posts: 83
Re: Contracting versus permanent employment
hi I am IT contractor in Melbourne, been our here 6 months. As others have said its the same as in UK apart, main difference is taking advantage of the tax as I used to do back in the UK. Its more complicated here with setting up your own company.
#7
Re: Contracting versus permanent employment
- CDM
#8
Forum Regular
Joined: Feb 2006
Location: Melbourne
Posts: 83
Re: Contracting versus permanent employment
2nd/3rd line support come from financial background in London. Getting a job over here was easy ended up getting more job interviews then I could handle. Ended up taking a job with one of the big 4 aussie banks, hoping to go permie once my contract ends.
Obviously things are a bit different now so not sure what the current market is like.
Obviously things are a bit different now so not sure what the current market is like.
#9
Re: Contracting versus permanent employment
Pros of contracting are just the same here as in the UK. You get a far better rate when contracting (surely the only reason people do it ). There are some other financial advantages, too depending on how you're set up.
Cons are being the first to go in lean times and not having any feeling of permanence.
Cons are being the first to go in lean times and not having any feeling of permanence.
Today's Friday and we're having a bar-b-q on the ward where I work, so I'll stay late and help cook. Then to make up for the extra 2 hours I'll either take a morning off work next week or perhaps save the hours and take a day off.
I can say when I'll take my vacation, not ask some boss whether I'm allowed, which is a real bonus.
#10
BE Forum Addict
Joined: May 2007
Location: Perth
Posts: 1,179
Re: Contracting versus permanent employment
I have contracted for over twenty years and I can't say that I am my own boss when it comes to choosing when I take my holidays. You are still an employee as a contractor and as such you have a reporting structure in your organisation. Some would take advantage of this and adopt a mercenary-like attitude which I have seen all too often. The independence is an advantage as is the money but it's like apples and pears; you don't get paid holidays, public holidays, sick leave, maternity leave, training, flexi-time (though this is very much organisation-dependent), parking, super, inside-info, treated as a human blah blah - you know what I mean.
Don't get me wrong I loved contracting and earnt a lot from it but it does have its pitfalls.
Don't get me wrong I loved contracting and earnt a lot from it but it does have its pitfalls.
#11
Re: Contracting versus permanent employment
2nd/3rd line support come from financial background in London. Getting a job over here was easy ended up getting more job interviews then I could handle. Ended up taking a job with one of the big 4 aussie banks, hoping to go permie once my contract ends.
Obviously things are a bit different now so not sure what the current market is like.
Obviously things are a bit different now so not sure what the current market is like.
- CDM
#12
Re: Contracting versus permanent employment
I have contracted for over twenty years and I can't say that I am my own boss when it comes to choosing when I take my holidays. You are still an employee as a contractor and as such you have a reporting structure in your organisation. Some would take advantage of this and adopt a mercenary-like attitude which I have seen all too often. The independence is an advantage as is the money but it's like apples and pears; you don't get paid holidays, public holidays, sick leave, maternity leave, training, flexi-time (though this is very much organisation-dependent), parking, super, inside-info, treated as a human blah blah - you know what I mean.
Don't get me wrong I loved contracting and earnt a lot from it but it does have its pitfalls.
Don't get me wrong I loved contracting and earnt a lot from it but it does have its pitfalls.
I'd say that one of the less obvious advantages to contracting is that you can completely dettach yourself from the politics of the organisation for which you are contracting. You don't have to get involved in all the various 'drives' that often come through and you don't need to worry about the organogram and who is being promoted versus who isn't. At the end of the day, you come in, do the work asked of you, get paid and go home again. OK, it may not be 'quite' so straightforward as that but it's broadly along those lines.
Here in London, if I were to 'roll' from contract to perm, my net income would go down quite drastically even though I'd be doing pretty much the same workload. I'd also be pressured hard to meet oftentimes arbitrary targets and deadlines and so on just to chase a few grand in potential bonuses at the end of the year. And worse still, those bonuses may never materialise.
Perhaps for these reasons amongst others, contractors can sometimes be viewed upon by incumbant permies as 'scum' but as I see it, permies are often treated as scum by their employers anyway. If I have to be scum, I'd rather be the better paid type.
- CDM
Last edited by CDM; Nov 14th 2008 at 11:20 am. Reason: Spelling corrections
#13
Forum Regular
Joined: Mar 2008
Posts: 144
Re: Contracting versus permanent employment
Is it difficult to get a mortgage as a contractor vs a permanent employee?
#15
Just Joined
Joined: Nov 2008
Location: Perth
Posts: 7
Re: Contracting versus permanent employment
ta!
Leah