You may have been contracting for years or maybe you’ve only worked on a few assignments, but it will become clear to you when it’s time to start seeking out permanent roles again. While contracting has its advantages the security of a permanent job, along with the frustration/boredom of contracting can be enough to lure individuals back into the permanent world of work.
When making the move from contract to permanent roles, here are some things you should consider.
What is the employer looking for?
Some employers may be hesitant to hire someone with a contracting background because of a perception that they will jump ship if something “better” comes along. When making the move from contract to permanent roles, be open and honest with the employer about why you’re making the change and why you want to join their company.
Moving from umbrella or Ltd to PAYE
If you’ve been contracting it is almost a certainty that you will either have a Ltd or Umbrella company. When moving to PAYE you have to make the decision to close your company or leave it open, both with advantages and disadvantages. If you close your company you will free yourself from the administrative chores that come with operating it, and if you’re a higher earner you can withdraw £25,000 of cash from the company as a capital gain rather than income. However, if you close your company it will be gone forever, so if you ever do decide to go back into contracting you will have to open a whole new company. Another disadvantage is you must settle all debts before closing the company, meaning you must pay Corporation Tax long before the normal payment deadline.
Holidays and sick pay
As a contractor, you would have had full control over when you book your holidays and how long you took them for – as a permanent member of staff it’s likely that you’ll get at least 28 days leave including bank holidays. You’ll experience less control over your holidays but the bonus is they will be paid. The same goes for sick days. In permanent employment, you don’t have to worry about making financial provisions to cover the days when you’re not at work.
There is also the added positive of being able to take advantage of company benefits such as life insurance, healthcare, and bonuses.
Knowledge vs career progression
Due to the nature of working multiple short-term assignments, contractors usually have an in-depth knowledge of the sector they work in. Changing projects on a regular basis gives you the chance to update and further your skills – however, if you’re looking for career progression, it’s unlikely you’ll find it as a contractor.
When working for a company in a permanent position, there will likely be a structured career path and a budget to spend on training, something you won’t experience if you’re a contractor.
As well as specialising in contract roles, Cogent Staffing has grown to include a permanents division. So, if you’re looking to move from contracting to a permanent role get in touch with the team to find out how we can help.