Chameleon Tech Inc

Permanent or Contract?

Wednesday, November 2nd, 2011

As a full-service staffing and consulting firm, Chameleon Technologies offers a wide range of services, including permanent and contract staffing, consulting, project-based solutions, and managed services. This allows us the flexibility to satisfy any of our clients’ needs. Today, however, we will focus specifically on the two basics: permanent and contract placement. What do each of these choices mean for the prospective employee? Is one type of employment better than the other? The short answer is: not really. Both situations have their own pros and cons, and it’s up to the individual to decide which is going to work best.

Permanent

Just the word “permanent” implies a sense of security and stability, and that is often what people cite as the greatest advantage of a direct hire. Of course, as many people have found out in the past few years, even permanent jobs can end abruptly. And if a long-term job becomes less satisfying over the years, it can be much more difficult to get out of.  Still, some employees thrive more in an environment where they know they are going to stay in one place. Permanent hirees can also have more opportunities to grow and develop their skills within one company, and companies are more likely to invest in career development. Pay may not start out very great, but it’s steady and there is usually a full benefits package to go along with it.

Contract

Contract assignments are very common in the IT field, yet there are many job seekers who aren’t interested in this type of employment. Some people assume that all contract work is short-term and temporary, though that is not always true. A project-based contract may only last for a few months, or even weeks, but some contracts can be continually extended and last for years. Other jobs may only start out as contracts and later develop into permanent employment. The main benefit of contract work is that most contractors (also known as consultants) tend to receive higher wages, since hiring costs are lower. Contracts can also offer more flexibility and a wider variety of opportunities. Even though it may be necessary to move from job to job more often, it is sometimes easier to stay employed through contracting, especially in a tough economy. In general, most contractors do not receive benefits, but a good firm such as Chameleon will provide comprehensive benefits for their consultants.

It’s important to carefully consider all of the options and look beyond the common perceptions (and misperceptions) of contract versus permanent. Most often, deciding on the right job is a complex array of decisions, especially if there is more than one opportunity. It’s a little like trying to decide whether to rent or buy. Each choice has its own set of advantages and disadvantages – it just depends on the specific situation and the needs of the individuals involved.