Why Contracting?

Another one from me. This time I'm addressing a conversation I have daily, and that's the benefits of contracting. It's been a while, but hey, quality over quantity, right?

Why contracting?

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Contracting has become increasingly popular in recent years. Particularly in the technology industry, with lots of projects meant for the 2020/21 years that we seemingly lost due to Covid. Contracting within technology is particularly attractive due to its unique benefits. In this article, we'll explore the advantages of contracting in New Zealand, so let's delve in.

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1.??Flexibility and control

One of the key benefits of contracting is the flexibility and control it offers. As a contractor, you have greater control over your schedule and the type of work you do. You can choose to take on projects that interest you and align them with your skills and expertise. Additionally, you can negotiate the terms of your contract, including your pay rate (more below), work hours, and project timelines. You can also take time off between contracts, providing a greater work-life balance and allowing for more time to pursue personal interests or recharge, depending on what you want to do.

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2.??Increased earning potential

Another advantage of contracting is the potential for higher earnings. Contractors are often paid a higher hourly rate than permanent employees due to the nature of the work. Contractors can negotiate their rates for each project, allowing greater control over their income. Additionally, as a contractor, you can take advantage of tax deductions and expense claims, further increasing your earnings. However, it’s important to engage with a good accountant and set some of your earnings aside for unforeseen circumstances, such as unexpected periods of illness.

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3.??Opportunities for professional development

Contractors in technology can work on a wide range of projects, often for different clients. Doing this gains exposure to various technologies and industries, providing valuable professional development opportunities that can enhance skill sets and make them more marketable. Additionally, this can lead to new opportunities and connections within the industry.

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4.??Greater control over your career

Contractors have greater control over their careers than permanent employees. They can choose which projects to work on and be free to take time off when needed.?

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5.??Better work/life balance

Contracting in technology can provide a better work/life balance than traditional employment. Contractors can choose when and where they work, providing more time for personal interests, family and friends, and other essential aspects of life outside of work. This can also help to reduce stress and improve your overall quality of life!?

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6.??Held in high regard

Apologies for the connotation, but hiring a contractor is like hiring a mercenary – you're a hired gun. You want someone who's been to war a few times and knows what they're doing when the push comes to shove.?

You give the contractor the instructions, and they will go and get it done quickly and correctly. Because of this, contractors are generally held in high regard for their experience.

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In conclusion, contracting in technology within the New Zealand market offers many benefits, including flexibility, control, a greater variety of projects, increased earnings, a better work-life balance, and more opportunities for growth and development.

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If you are?considering contracting?in technology, it is essential to understand the risks and responsibilities of this type of work, as there are hidden costs to think about, too. However, contracting is the way to go for those who value autonomy, variety, and the potential for higher earnings.

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If you'd like to chat about going contracting, please reach out to Rich Jee (rjee@welovesalt.com) and Belcy Espitia Castellanos (bespitia@welovesalt.com) from?Salt, and we can talk you through the market and help you get started!