Permanent Employment Vs Contracting
Decision to change from Permanent Employment to Contracting should not be taken without, as a minimum, considering the following:
Can you afford to take the risk?
First and foremost you must consider Personal/Family circumstance, you will need to plan for holidays/sickness, health insurance, further training, idle time between contracts (yes, it can happen and it’s better to expect it rather than being surprised)
Do you have the skills?
If you are confident, and have sufficient depth and breadth in your skill set and are considered an Expert in your field, then contracting might be for you
Do you Enjoy Fast pace, high pressure situations and long hours?
Clients look to hire a contractor in attempt to keep projects on schedule and within budget. Successful contractors tend to be quick learners, very well organized and make themselves available in the interest of the project. Successful contractors are highly adaptable to their surroundings and are willing to do what it takes to help keep projects on schedule often go above and beyond to ensure project success.
Each work environment is unique and team dynamics may vary significantly, In order to succeed as a valuable contractor professionalism is a must !. Successful contractors conduct themselves with a high level of professionalism following a strict code of Ethics. more
If you do decide to start contracting, plan your move carefully.
Prepare your resume – you can get help in preparing the resume but you must be responsible for the accuracy and quality of presentation.
Select 2-3 Agencies – selecting reputable agencies and investing time in meeting them and establishing/maintaining ethical business relationships with them will ease your transition to contracting.
Timing – Flexibility in timing your move to contracting will enhance your chances of finding a contract quickly. You may only need to provide 2-3 weeks notice to terminate your employment, but you may be in the middle of a project and want to take it to a tidy conclusion. Do not Burn ‘Bridges’ Unnecessarily.
First Contract - The work may be the same, but working as a contractor brings pressures that you must face in an ethical manner. You may need time to adjust to the contracting world. Make sure your first contract is at least 6 months duration – even better if there is a possibility of extension.
Business/Company Registration – Consult an Accountant regarding the type of business/company you need to register i.e. incorporated (named or numbered) company, partnership, or sole proprietorship. The business/company registration process is fairly quick.
Business Reporting/Deductions Requirements – The type of business reporting and deductions (i.e. Employment Insurance, CPP, and Tax) requirements differ – depending on the type of company you decide to register. Your Accountant can advise on the requirements but remember you are responsible for your company’s obligations. Make sure the appropriate deductions are submitted and business reporting requirements are filed in a timely manner.