Why 2021 may be the perfect year to become a contractor
Becoming an independent contractor can bring with it opportunities that full time role simply cannot.
If you are considering a change to your career, and mulling over the benefits of becoming a contractor, in this insight we consider some of the key reasons why you should give serious consideration to this career change.
An initial step into contingent work could be the perfect opportunity to test the water and discover if the move is suitable for you.
Contractor roles are in-high demand as a result of the pandemic
There is a strong misconception that the pandemic has created a decline in contractor opportunities. However, such contract-role opportunities have in fact been on the rise in recent months, especially in industries such as financial services.
With business models continuously changing and adapting to new regulatory landscapes and different ways of working, contingent staff have increasingly been required to assist on a project basis to help get businesses back on track to pre-pandemic levels of operational efficiency.
What are some of the key benefits you will experience as a contingent worker?
- Flexible employment- One of the biggest benefits of becoming a contingent worker is that you can choose contracts that best suit your preferred patterns of working.
- Work experience: Gaining temporary or contingent work within a profession that you are trying to carve out a full career can be invaluable when applying for future permanent roles. By gaining experience as a contingent worker, not only are you able to get a better understanding of what the role entails, you can also gain invaluable experience for future opportunities, So, think carefully about your next role, plan towards this and target a specific sector or role where a contractual placement will be of value to your overall experience. Remember, previous work experience in a similar role can be just as valuable to employers as qualifications.
- Work for some of the most reputable companies in the world: Being a contractor can allow you more opportunities with some of the most reputable and respected organisations in the world – giving your CV an impressive array of both experience and employment gravitas when applying for future opportunities.
- Work Variety: Working in a variety of different types of projects for different companies can help to make your CV stand-out from the crowd, demonstrating transferable skills through different roles. Plus, many employers are willing to consider less experienced candidates for temporary work, meaning it may be easier to get a contract role in a field that genuinely interests you. Read more benefits here .
What laws and regulations should you be aware of as a contractor?
There are varying laws across some of the world’s most popular and advanced contract-worker markets which, when becoming a contingent worker, you need to be aware of. So, it’s always best to research what they are and what you will need to do in order to meet all of the necessary legal requirements.
Below, we have outlined some of the key considerations in the three of the world’s most popular and developed markets for contingent workers.
UK: It is commonplace for many people working in the contract or temporary employment market to use a Limited Company through which they are paid. These companies are referred to, when used in this way, as Personal Services Companies (PSCs). Such arrangements are considered by HMRC under an arrangement known as IR35, something as a Director of a PSC you should be aware of. You can read more about this whole process here.
USA: The US has several laws you will need to follow if you want to join the world of contracting. On a contract job, an employee works for a staffing firm on a W-2 basis, under the direction of the client company for a predetermined amount of time to work on specific projects. The staffing agency pays the contract worker and takes out their taxes. You can read more here
Australia: As a contractor, you can be an individual (sole trader) or working in your own company, partnership, or trust. You might even call yourself an independent contractor or sub-contractor. Contractors have different tax and super obligations to employees that you will need to understand. To find out more about this and the other laws applicable to the Australian market, you can find out more here.
How to win work
Winning work as a contingent or contract worker can be hard, so we suggest joining a resourcing company or agency that can help you choose roles that not only progress your career but allow you the best opportunities to work in some of the most prestigious institutions and locations in the world.
Momenta is a global contingent resource solutions company, providing skilled professionals to the financial services, legal, technology and training and development sectors for over 30 years.
If you believe you may have the right skills and experience for an exciting new project with us, you can. By becoming one of our associates, you join a company that provides people with quality opportunities, development, and ongoing support globally.
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