The pandemic allowed for the first time globally, a unique opportunity for permanent consultants to take the leap into the contract world. However, with normal life in reach, permanent positions can now offer some of the same pull factors that would usually lure a contractor in. As well as IR35 changes in the UK, we have found a lot more interest in talent wanting to return to the perm world.
We have piled together a list of things you should consider if you're thinking of going permanent:
Know your reason why.
It's essential to consider a list of things that are now more valuable to you in your new potential role as a permanent employee. You might emphasise things like job security, holiday allowance, pensions, or sick pay more than money, and that's when you know you're making the right decision.
Suppose you need a greater level of freedom and independence in your career, then staying as a contractor would make more sense. In that case, you have more control over the roles you take, the type of work you will accept, and if you're lucky, you can often negotiate your contracts around personal commitments.
The pros of being a Permanent Employee:
Job Security
Belonging to a team, being part of their culture
Progression opportunities
Additional benefits
Training and development.
The pros of being a Contractor:
Better pay, high rates
You're your own boss
Higher level of job variety
Build a strong network
International work
It's not a trade-off.
OP's Principal Associate Josh Pratt emphasised the importance of looking at the whole package when seeking any permanent opportunities. He said: "Don't discount an opportunity just because the salary may be lower than your hourly rate pro-rata over the year. If you're considering the move, the security and the benefits of a permanent employee are huge for FTE that could be a cost otherwise".
Still unsure? Here are 3 things to ask yourself:
The biggest thing to consider is why you chose to contract in the first place; if it's money, then in the short term, if a lot of assignments are incorrectly deemed inside IR35, and the availability is low, then moving permanent could potentially make you more money. However, it's rarely that simple, so it's worth considering a few of the following factors in your decision-making process too:
Are you going to be happy working on the same project(s) in the same environment for several years at a time?
Supply & demand will always be the overriding factor in the cost of a contractor in the long run. In the event of a turbulent job market, are you willing to ride the wave or favour job security?
Make your decision and own it. If you decide to switch to a permanent position, you need to stick to it. If we're looking for a new position for you, we want to know you're not using this as a stop-gap until a contract opportunity comes up, which leads us to remind you of the pros and cons listed above.
For more information, or you would like to chat about your options, get in touch with a consultant here.