Direct Hire vs. Contract

April 7, 2015

For many, it’s not an easy decision: to work on a contract or go directly to a permanent position. Each has its advantages, and it’s important to re-evaluate them as the market changes. Maybe in 2009 it made more sense to stick with or look for a permanent position as the labor market healed. But today the landscape looks very different, and you’re more free to move around. Here are some things to think about.

Test Drive.

The biggest benefit in working with a temp-to-perm arrangement for both employer and employee is the ability to try out the position and the organization before committing. Temp-to-perm gives a lot more flexibility so that a smarter decision can be made. The hiring process is often swift, companies feel pressure to get boots on the ground, or fingers on laptops. Was there enough time to really evaluate this commitment?

But What about Benefits?

In the past, companies had a lot of leverage with things like health care coverage and retirement benefits, but the playing field is leveling, and it should. A healthy economy requires goods and services be able to move freely and align with demand. If people are afraid to bring their skills (move supply) to where they are in higher demand because they can’t afford to live without healthcare or retirement benefits then the system doesn’t function properly. But enough of the Macroeconomics 101 lecture, let’s get back to how the playing field has leveled. It’s no longer hard or as expensive for an individual to get health care coverage and it’s even easier to open 401k and IRA accounts.

Appetite for Risk?

There is no greater risk than never taking any risks. But, you first.
When you have a fast-moving, innovative economy, the rub is there isn’t as much safety and things, in general, are a little less predictable. But that also means things aren’t boring, and there is a nudge to keep trying new things until you find what’s exactly right. This is where contract work often makes a lot of sense. And, then there’s that old saw about it being better to regret something you have done than something you haven’t. There might be something to that.

About NextGen

NextGen is the brainchild of longtime telecom professionals with nearly 50 years of experience and millions of dollars in Telecom Recruiting Services. We focus on establishing long term relationships with our clients and candidates so we can recruit the best and the brightest in the telecom industry. This ‘quality over quantity’ approach is at the heart of everything we do and has resulted in successful job placements at Fortune 1000 firms worldwide.

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