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What We Think

TEMPORARY VS CONTRACT VS PERMANENT

by Peri Hann

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When you’re browsing Seek and LinkedIn for jobs you’ll probably see the words “temp” “casual” and “contract” quite frequently. Depending on what you’re looking for in your next position in terms of flexibility, longevity and freedom, it’s important to understand the different between the three when choosing your next role.

TEMPORARY OR CASUAL WORK

 

Temporary positions can last anywhere from 1 day to 6 months plus. They are a great option for someone wanting to get specific industry experience and a way to build transferrable skills. Perhaps you’ve even moved to a new city and you want to make sure you don’t have any gaps on your resume while you’re looking for your next permanent role. Temporary roles are also a great option for anyone on a Working Holiday Visa as it allows you to work for the same employer for 6 months. Employers advertise these roles due to extra work in the business or as a way to get an extra resource while they wait for additional headcount approval. A lot of the time these temporary positions are made permanent if you work hard and your employer is given the approval.

 

Pros to being a temporary employee

  • You get paid overtime! You are usually paid an hourly rate and any extra work you put in you get paid for.
  • A speedier hiring process – you can normally have a “working “ interview and I’ve had contractors start the next day
  • Cover any resume gaps – if you recently finished your last position and want to make sure you have consistency in your resume, this is a great way to show you are motivated and committed
  • Opportunity for permanency – a lot of the time these roles end up becoming permanent. Starting as a temp gives you the opportunity to get a foot in the door and prove to the employer that you are valuable!
  • Improve your resume – a temporary role may give you the opportunity to gain and add skills to your resume. This is a great option if you’re looking for a switch in careers, industry or perhaps you want to learn a new system

 

Cons of being a temporary employee

  • Stability – temporary positions are by definition, “temporary”. These are usually short term and the longevity of the contract can’t usually be guaranteed
  • You will have fewer benefits than permanent employees including not being eligible for paid sick leave and you won’t accrue annual leave

 

CONTRACT ROLES

 

Contract roles are more defined and fixed in their terms and length. Contractors are usually payed directly through the employer on a pro rata basis if you sign up to a “Fixed term contract”.  Common contract lengths are usually 6, 9 or 12 months but they can sometimes go up to 24 months or as short as 3 months. Contract roles are another great option for someone wanting to keep their resume gap free as well as a foot in the door for a role that may become permanent.

 

Pros to being an employee on a contract

  • Contractors usually receive the same entitlements as permanent employees, you’ll accrue both annual and sick leave
  • Job security – you’ll know the duration of your contract and in addition to this your employer must give you notice if they are to end employment
  • Be your own boss! – A lot of the time contractors are employed to work on specific projects so you are able to pick and choose the right role for you! Finishing a project is a great accomplishment and would be a great addition to add to your resume
  • Network! Contracting will introduce you to many different people; this is a fantastic way to find new work. Referrals are a great way to get into a business and networking is really important

 

Cons of being an employee on a contract

  • Less job security. Obviously a contract position has less job security than a permanent position and you will need to use your spare time towards the end of your contract to look for another position if the contract role doesn’t turn permanent.
  • Usually you won’t get paid overtime – this is the same as a permanent employer and you’ll be paid a pro rata salary therefore you won’t earn more for any additional overtime.
 

PERMANENT POSITIONS

 

A permanent employee is as described. You are a full time (or part time) employee of a business with no end date and you accrue leave from day 1.  You are usually paid a monthly or fortnightly salary directly from the company.

 

Pros of being a permanent employee

  • Job security. You’ll know when your next pay cycle is and you don’t have to keep marketing yourself.
  • Less financial risk – you have a guaranteed salary
  • You are usually given paid time off for public holidays, annual and sick leave
  • As a permanent employee you may have more opportunity to advance your career or even complete secondments within the business.
  • You are entitled to long service leave and redundancy pay
  • You may have annual salary reviews
 

Cons of being a permanent employee

  • If you enjoy working on different projects and like being constantly challenged then being given a limited scope of work may prove difficult for you
  • You’ll have a limited amount of annual leave per year
  • Less freedom to decide what work or projects you want to be involved in
  • You’ll usually need to give at least 4 weeks’ notice if you were to move on from the business

 

At TalentWeb we have roles across the permanent, contract and temporary space and would love to find you your next role! Please get in touch with one of our consultants for more information.