A contract position is where a worker is hired to complete a specific job over a predetermined period and for a set amount of money. Businesses can use contractors for a variety of purposes. For example, they can help organizations:
- Scale their business in response to seasonal needs
- Complete tasks that are of limited or predetermined duration
- Operate and complete important projects or tasks without hiring full-time staff
- Access specialized skills that do not exist internally
- Try out a project with a temporary worker to see how the person integrates with the existing team, with the potential for hiring the professional full time if the project is a success and a permanent need exists
Contract jobs can help you build a strong portfolio and expand your skills, serving as steppingstones to more specialized and potentially higher-paying work. These jobs also allow you to explore new work environments and industries.
Contract jobs are ideal if you prefer the control, flexibility and opportunity that comes with being self-employed.
If you’re interested in pursuing contract jobs, here’s what you should know.
What is a contract job?
In a contract job, the business hires a professional to help them accomplish a defined task for a determined amount of money. For example, an organization might hire a social media marketer to launch their social media profiles and organize a strategy. A smaller business working on getting established might hire a professional to build a website, design a logo, or provide accounting services.
The contract defines the task the professional will manage, the amount the business will pay for the professional’s services, and the timeframe. The relationship between the contractor and business ends after the job is complete unless the contractor is hired for another job with the business.
Since the job has an end date and predefined scope, the professional is not entitled to any benefits from the client, such as health insurance. The contractor should also pay close attention to tax implications and their responsibility for filing taxes with the Internal Revenue Service as an independent contractor.
How do contract jobs work?
With contract work, the business interested in hiring an independent professional will post a job based on the task they want to be completed. A work marketplace like Upwork makes it easy to create job listings that target contract talent with specialized experience. Companies can use the platform to view applicants’ profiles and portfolios to find a match for their task.
Before the job begins, the client and contractor will determine details like the schedule for work completion and pay rate. The contractor will complete the job and receive their pay when they complete certain milestones or the full task.
Why do businesses use contract-to-hire jobs?
With a contract-to-hire job, the worker starts as an independent contractor. Then, if both parties agree to the working relationship, the job might turn into full-time employment at the conclusion of the contract.
Businesses might find that using contract-to-hire jobs provides their organizations with various benefits, including:
- The ability to gauge candidates’ performance before hiring them full time
- An improved capacity to see how the candidate fits with the company culture and the rest of the team before making the situation permanent
- Ability to see how critical the actual role is within the organization and whether the nature of the work is ongoing before making a permanent hiring decision.
Benefits of hiring contractors
Businesses can uncover a range of benefits from hiring contractors. Consider how these advantages can help your organization nurture its growth and if contractors might fit into your business strategy.
Contractors can be more cost-efficient
Many businesses immediately take note of the cost efficiency of hiring independent talent. Contractors may bring the skills and experience of a typical employee, but they don’t incur the same costs. For example, companies don’t have to pay out employee benefits, such as health care, provide paid time off or account for payroll taxes. They also don’t have to pay the contractor for full-time hours if the job does not require them.
The need for an independent contractor
An independent contractor can bring a wealth of experience to the business. Working with an independent contractor allows businesses to bring in a highly experienced professional to manage a task or project.
This allows teams to easily bring in professionals to help them with short-term, specialized areas of work. If you need a logo designed for your business, for example, you can turn to a contractor who has the design skills that your team members do not. You have the chance to tap into their expertise without hiring a new employee.
Freelancers can also benefit organizations by providing training. If the professional comes on board to implement a new billing system, they can provide training to help the team capitalize on the new system.
Staffing flexibility
Contractors also make it easier to scale the workforce size as needed. If a business hits a serious uptick in demand through the summer season, for example, hiring additional contractors to handle certain jobs makes sense. With contractors, organizations can scale up or down as needed.
Bringing in new team members to help with particular project areas can be accomplished without a lengthy recruiting or onboarding process. Businesses also save time and money since they don’t have to worry about training costs.
Conversely, when projects end, businesses can easily scale down operations without sacrificing money or morale—like what would result when laying off full-time employees.
If you’re interested in taking advantage of the benefits of contract work to build your organization, Upwork can help. By tapping into the global workforce, you can search countless portfolios of professionals ready to help you accomplish your goals.
What are the benefits of a contract job?
From a contractor perspective, these types of temporary jobs can be an excellent way to guide and grow a freelance career while still maintaining flexibility. Many workers appreciate the opportunities available to build their independent contracting business and define their freelance career path.
In particular, many contractors often feel drawn to having less commitment than they would for a full-time position, gaining valuable work experience, and maintaining flexible hours.
Control over your career
Contractors don’t have to maintain the same type of commitment to a company as they would if they were a full-time employee. This can help them build a career that meets their personal goals.
If you excel at building websites, for example, you have the freedom to pursue the projects and companies you prefer, based on your interests and skills. You also can go after better-paying jobs as your capabilities expand.
What’s more, you can take on more or less work as your schedule and preferences change.
Valuable work experience
As an independent professional, you may be able to build skills quickly and more efficiently than you might at a traditional job. For example, if you’re a startup consultant who specializes in helping new businesses determine a fundraising plan, you can work with several companies to create a strong portfolio in a short period. If you were instead hired by a startup full time, you might only work on fundraising for that one company over the course of several years.
Flexible hours
As an independent contractor, you’ll probably find that you have more control over the hours you work. Independent contractors also have the flexibility to accept or decline work and opportunities at will.
You’re also likely to maintain more control over your schedule. Although you might need to meet with team members at particular times or be available during set periods of the week, you’ll generally have greater flexibility to work when you want.
For many contractors, this flexibility means it’s easier to build boundaries between work and personal time.
Let Upwork help you find contract work
Upwork makes it easy for independent contractors and businesses to connect. Our platform simplifies the process of finding jobs that match your skills and experience. After completing your profile and portfolio, we’ll even highlight jobs that may be ideal for you. You don’t even have to worry about the payment process. Take control of your freelance business and work with like-minded clients today.
