Contractor versus Employee

[mysticlighthouse]

In your opinion, is it better to be a contractor or an employee? What are your thoughts?

In your opinion, is it better to be a contractor or an employee? What are your thoughts?

hey man:
like my vote, i think the answer to your query is "whatever pays the rent" as one could argue forever the merits of either employment situation and the bottom line has to be the almighty $ unless you are a pro bono designer.
(question: is a pro bono designer = designer who listens to a lot of U2 music?)

back to planet earth>

personally i always contract out work that i can't do myself rather than to waste a client's time by playing with technologies that i really don't know/ haven't learned yet......for example i have an asp.net team in Banglore, India who does all my database development...i do it all off shore for obvious cost reasons....i save over 80% than what i would pay in america (LA, NY) or the UK......

this is kinda the reason why i enjoy owning my own business now because back when i worked for a boss i had no say in so many aspects of the design projects and i hate being told what to do. when i subcontract i simply charge the client exactly what the database development costs me so i can just concentrate on the design/flash etc.....


What are your thoughts?
those were my thoughts if if forgot to say that lol

cheers!
http://WebPageTurner.com

[matauri]

I think it changes country to country.

Wasnt sure if you meant as a 'freelance' contract or under a fixed contractual period. Below I've referred to a fixed term, because a 'freelance' one is pretty dependent on how you market yourself & make opportunities open.

in Australia....Both have their good and bad points. A contractor can demand a higher pay than an employee. But a contractor doesnt get paid holidays, sickies, etc. He also has to do his own taxes, GST, etc, and run his contracts as a business. Time at home is usually spent doing planning & finances, etc. A contractor also has to take into account times when he isnt working. Contract wages for a IT Techie here start at about $70k a year.

As an employee, you get 4 weeks paid holiday, 5 days full sick pay, 5 days half sick pay, maternity/paternity leave, superannuation paid for you, benefits, etc, etc. And you get to go home & relax at nite and on weekends. Wages for a IT Techie here are around $45k per year.

Depends what lifestyle you prefer.



Cindy

[mysticlighthouse]

To be honest, I'm torn between the two. My wife wants me to have a "permanent" position with a company. The way layoffs are, I don't think that term exists anymore.

I've been doing contract work for a good number of years and I'm seeing that a large part of my time is spent renegotiating contracts close to the end of my current contract or just trying to find anyone to get a contract with.

Things were always so much easier before the economy went soft. I'm really hating those commercials like "Get into the hottest profession, IT with our quick 45 day program and you too can be making $$$$$"... of course that is a load of crap and it just floods the market with poorly equipped developers. But I digress...

[sonnie]

mysticlighthouse

Personally I’d have to agree that the bottom line is a paycheck. However, I have worked
both ways. As an empoyee you generally have a certain amount of stability and security,
along with usally a few benefits. Being a contractor generally brings you the big bucks, but
most of the time fewer benefits (vacation, insurance, Holiday pay, sick leave, etc.). Also as
a contractor you have to consider taxes, bookkeeping, bonding fees (if you are required to
be bonded) and so on. Most of my work in the past was in controls engineering usually in
manufacturing. I found a good middle-road was to work for a Technical Staffing firm.
Many of the projects offered are fairly long-term and some even offer a few benefits. The
pay is generally higher than working direct for an employer, and on both sides there are no
long-term commitments if things don’t work out. I’ve been working for the same company
for 2 1/2 years now in this way. The staffing firm takes care of all the taxes, social
security, etc. and the company generally gets their money’s worth. I’m not sure if you’re
looking to hire someone, or hire yourself out. Just a couple of thoughts.

[sonnie]

Sorry, I didn't see your last post before I submitted mine.

[mysticlighthouse]

Sorry, I didn't see your last post before I submitted mine.

No prob. Thank you for the insight.

Change is always hard and maybe that's what I'm fearing. You are all right... as long as I have some cash coming in, it shouldn't really matter

money = food on table = happy Bryan
no money = no food on table = starving Bryan

[rocky1]

At this point in my life.... Contractor hands down! Have had my fill of busting my @55 for others, only to be dumped on in the end!

Although being employed may have certain benefits, so likewise does contracting. Think - Tax Write Offs for vacations to far away seminars, like in Hawaii! Not many bosses will send you there, but if you're the boss you can claim it.

To be honest, I'm torn between the two. My wife wants me to have a "permanent" position with a company. The way layoffs are, I don't think that term exists anymore.


you said a mouthful here....i know Cwriters and system adds. and techs from all walks who had "permament" positions up until last year and now have to work at Kinkos and/or Radio Shack.....becasue they were literally "just let go" from their ten-year positions at major comapnies......

the world is a scary place indeed and it is also completely unfair. i know people who went to tech school for 6 years and have also been fired this year due to company layoffs.......

Bryan i checked out some of your work and as a developer you are also highly creative and your work is highly stylized, slick & sharp.........you have great design sense too and this must work great w/ your (Cold Fusion?) programing acumen... I see no reason why people shouldn't be flooding email box w/ jobs.

I will recommend your site URL to a few people I know who could very much use a cold fusion developer

DAREN :-)
http://WebPageTurner.com

[mysticlighthouse]

Rocky,

You know... Hawaii does sound like a good place to hold my next "Shareholder meeting" ;0)

Daren,

Thanks man... every little bit of help I can get means a lot.

The whole reason for this post is that my contract ended yesterday at Bank of America. So I've been wondering if I should take a full-time position or just keep doing the contractor thing (but this time through my company and not through a consulting company)

The thing is I REALLY like working from home and doing a solo gig allows that... although not as lucrative right now. But as Rocky mentioned... the write-offs. :0)

[Webworks7]

I have done both, and I think the answer lies in who you are, what you enjoy, and your family. I was an employee for 15 years, (only two of those years were technology-related) and have been a contractor for three years. There are pros and cons of each situation:

Pro: My hours are extremely flexible - no boss tells me when to work.
Con: I have to find work for myself, rather than letting my boss find it for me.

Pro: Nobody bothers me while I am working.
Con: It's hard to stay on top of things and learn from others when nobody else is around. It's a good thing I have this forum.

Pro: I control the thermostat and environment, so I am not shivering in a smelly, poorly-ventilated office with no windows.
Con: I have to pay for the utilities.
Pro: Hey, those utilities are in my house, and 20% of them are tax-deductible!

Con: As a one-person show, I am never on vacation.
Pro: I can play hooky any time I want, because I have a laptop, cell phone, and modem. I can stay connected to my business while camping and my clients never know that I was out of the office.

Pro: I don’t have to spend money on office clothing anymore.
Con: I look like I don’t spend any money on clothing.

Pro: My office is in my home, so I spend no time or money on commuting.
Con: I am always at work.

Pro: Every day is Saturday.
Con: Every day is Monday.

Pro: I get to write off my health insurance.
Con: I have to pay for 100% of my health insurance.
Pro: I don’t have to worry about getting laid off and losing my health insurance.

Pro: I work half as many hours for the same net amount of money (after write-offs and other savings).
Con: Hmmm. There’s nothing bad about that.

Pro: I have total responsibility for my own fate.
Con: Yikes! I have total responsibility for my own fate!

It works for me because I have no children and no spouse, so I only have to worry about myself. With no responsibilities, the risk of having slow periods where no money is coming in aren’t as great. Sure, I still have to pay my mortgage on time, but if I had kids I would feel a need for more job security.

I never want to go back to being an employee - I love the freedom and the ability to do my job in the best way I know how, without being slowed down by rules, rules, rules.

[aaronmp2003]

I feel pretty strongly about this one, because I have "settled" for many positions working for someone else, and each time I ended up hitting the door because I couldn't stand the "corporate mentality".

I thought it would go away once I got into the fitness profession a few years ago, but working in a gym is just another version of "Corporate America".

For better or worse, I've come to the conclusion that working for myself is the ONLY long-term solution for my personality. But I'll take that, because I LOVE working for myself, despite the risks/drawbacks. I feel that the good outweighs the bad hands-down.

-- Aaron

[rocky1]

I truly loved your attitude Webworks7, I'm going to print this one out and hang it on my wall as motivation and incentive toward my new lifestyle! With these few additions....



Pro: My hours are extremely flexible - no boss tells me when to work.
Con: I have to find work for myself, rather than letting my boss find it for me.
Pro: I don't necessarily have to accept the job if it's an ugly one!


Pro: I don’t have to spend money on office clothing anymore.
Con: I look like I don’t spend any money on clothing.
Pro: No one around the office cares if come in wearing my pajamas!


Pro: I get to write off my health insurance.
Con: I have to pay for 100% of my health insurance.
Pro: I don’t have to worry about getting laid off and losing my health insurance.
Pro: The company isn't deducting that amount from what could be in my paycheck, and telling me that they're giving those benefits too me, to make me feel good about working for them!


Pro: I have total responsibility for my own fate.
Con: Yikes! I have total responsibility for my own fate!
Pro: I just had to leave this one!

[tviman]

I think the biggest question you have to ask yourself is whether you have the discipline and stomach to be your own boss. Once you decide to go on your own, you've become an entrepenaur - and that means you'll be putting everything on the line. And don't be fooled by the lure of "big bucks" because few of the jobs you are offered fall into that category. Additionally, you'll have to be an expert at time management and multi-tasking for you'll usually have to work on 2, 3, or 4 projects at a time just to pay the bills.

And your spouse has to be 100% behind you in order to weather the lean times, which will inevitably come. And if you make your home your office, it has to be written in stone when you can and can't be interrupted to take the trash out or unclog the drain. Also, you have to have STRICT office hours in order to keep the "always at work" feeling at bay.

If you can handle the above, then there is no other way. I've been doing it for 15 years and would never "go back". It hasn't been easy - at times I've been so broke that I couldn't even pay attention, and at others I've had million dollar contracts. Most of my jobs are in the 2K-10K range with a lot at the $300-$500 range. But I can pick-and-choose my projects and work on what I interests me.

Before you make the leap, sit down with your wife and have a long, hard discussion about it. And spend the time to make a well thought out business plan - without it you'll have no idea where your going or how to get there. It's the road map to a successful business, time consuming to create, but absolutely priceless.

[dealercrm]

I'm really hating those commercials like "Get into the hottest profession, IT with our quick 45 day program and you too can be making $$$$$"... of course that is a load of crap and it just floods the market with poorly equipped developers. But I digress...

I really must totally agree here. However, this has been the hype ever since I have been in the technology field. "Get your MCSCE (with no practical experience), and make > $65k per year" -- yeah funny... Those commercials are pure entertainment to me. I used to love watching my fellow college friends say "Oh I should do that?", in response to these ads, meanwhile I'm laughing and doing consulting work.

Anyways I like contract work and employment depending on the situation at hand... If the employment is rewarding and fullfilling the same way that contractor work is, plus if gives me security. I then jump on that bandwagen.

If market sucks and can't find a full time position then I contract work which can be as rough as a poor job market. Either way what is best is to always try to choose something that leverages your current skills and builds on them.