Here I have outlined my top tips for contractors so that you are fully equipped with knowledge of what a move into contracting requires and the positive spin-offs
Being A Contractor in the 21st Century
There has been a massive increase in the interest of contracting jobs over the last 2 years. There are many reasons why this is, aside from the obvious monetary benefits as well as the flexibility and control of your career. Month by month more people are becoming increasingly attracted to the idea of becoming their own boss.
Apart from the flexibility and the obvious earning power, just why are contractors are becoming so popular in Ireland right now? Also, what do people need to be aware of with contracting if they are thinking of going out on their own?
Here, I have outlined my top tips for contractors so that you are fully equipped with knowledge of what a move into contracting requires and the positive spin-offs.
1. Know Your Market
We recommend that you do plenty of market research on the type of contracting jobs that will suit you. This will be based on your skillsets and the amount of experience you already have working in your field.
It’s well accepted that take-home pay is good for contractors. Reasons for this are that the company hiring you for a contracting role will pay you a higher rate because of the short-term nature of the work. You could be paid an hourly/daily rate, for example. If you are considering leaving a permanent job to become a contractor, it is important to be aware that you won’t be getting paid for sick days or holidays but you will be earning a substantial amount more for the work you are doing.
3. Set Yourself Up Properly
Before you start working as a contractor, you will need to ensure that you are set up to operate as one. Because you will be self-employed, you can opt to set up as a limited company or become part of an umbrella company. An umbrella company is where the contractor enters a contract with another company who will manage their financial affairs for a fixed fee, usually very affordable and well worth the investment. It is a good idea to research the options open to you and to consider talking to an accountant or an independent financial adviser who can provide guidance on the best company structure type to suit you. They will also be able to advise on the schemes. This means that you, as a contractor, should possibly consider in relation to everything from tax to health insurance.
4. Widen Your Skillset
Contracting roles will provide you with opportunities to develop your skillsets and flesh out your portfolio of what you can offer companies. The end result? You’ll become an expert with specialist skills. You will also have more time to acquire new skills along the way.
Contracting is a winner for many because of the freedom it offers, not just to be your own boss, but to steer your career in a particular direction. Obvious benefits include greater control over your work-life balance. Contracting jobs suit people who wish to work for a specific amount of time and then move on. Another perk is that you will have the facility to choose the type of work you want to do – knowing that the contract position will last for a defined period of time. Just be mindful that building a partnership with an agency like Morgan McKinley is key. We’ll keep you one step ahead and be on the lookout for new contracting roles before your contract is due to expire.
Overall there is a lot to think about here, but if you feel that this is right for you, it can be a very rewarding and positive move to make. Here at Morgan McKinley we pride ourselves in the genuine care we do offer to our contractors and if you do have any questions or concerns, we are on the other end of the phone more than happy to help.