Contract vs Direct Employee Essay

2737 Words Jul 8th, 2016 11 Pages
Contract Versus Direct Employee

We have all be there, sitting in our offices, staring at the walls wondering is this it? Am I going to be stuck in this same position until I retire? Are any other opportunities going to come my way? Then before you know it opportunity comes across your desk that would allow you to have more flexibility, freedom and a chance to earn more money. Do you do it? The only catch is, you give up your position as a permanent employee and become a contractor. When someone chooses to become a contractor it allows them to try other jobs, see what is out there and get a chance to get experiences that they wouldn’t normally get if they were stuck with one role for the rest of their professional life. Being a
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That hourly rate was much higher than what I was making (a 70% markup). When I complained to the consulting company, they said I can earn more money by switching to a W-2 employee, but I would miss out on the benefits of being a perm (paid vacation/holidays, higher medical premiums, paid bench time). I did the math and determined those benefits required an extra $4/hr. When I asked how much more an hour I would get W-2 and they said $12/hr, I switched immediately to W2 (a “Consultant”). And what they fail to tell you is if you are on the bench for longer than a week or two, they can you (not to mention the next project they line up for you might be one you don’t care for)” (James Serra, 2012)
Along with pay, flexibility is what draws people to the contract side of employment. When you contract a person is able to have the freedom to work a more flexible schedule, are able to choose the hours they desire, telecommute and work a completely virtual role. Contractors don’t work the normal 9-5 position that companies require. There are so many different options to choose from when choosing a work schedule as well. An example of a contractors day might look like this: They woke up with a splitting headache and was lying around with an ice pack on my forehead and the ibuprofen nearby, but they

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