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points to consider when taking a contract position

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Whitaker Medical

Thinking About Taking a Contract Position – Points to Consider

Written by: Linda Ranostaj, CTS

If you hold a full-time position, how do you transition into contract work? Adjusting to contract work can be easy for many direct-hire candidates, keeping the following aspects in mind:

  • Hourly pay for hours worked, and typically the hourly wage is higher since contractors seldom get benefits. Before taking a new gig, spend some time thinking about your desired hourly rate.
    • Multiply your base salary by 25% to 30% to estimate the cost of your benefits. Then add it to your base salary and divide by 2080 (the estimated hours worked per year).

For example: $100,000 (base pay) + $25,000 (personal cost of benefits) divided by 2,080 (hours worked per year) = $60.00 (estimated hourly contract rate)

  • Contract work roles are typically more specialized and more defined, than direct-hire roles.
  • Politics can be minimized with contract work, you are there to do a specific job, come in and get it done.
  • Contract work can be a great way for you to take on different roles and learn new technologies. In addition, it enables you to expand your professional network.

Additionally, it is important to keep in mind that as you continue working as a consultant you may use a significant part of your time looking for contract work especially when you are just starting out.

Below are suggestions for a contract professional to land another position once their assignment is over:

  • Networking with people at your current project, staying in touch with former colleagues and being a part of professional organizations.
  • Reputation of completing projects on time and on budget.
  • Staying abreast of potential projects in your area, how you can utilize your skill set with willingness to work on different projects can potentially extend your stay on contract at a client and may lead to a direct-hire offer.
  • Adaptability, flexibility, embracing learning and new situations.
  • Ability to market your skills set to upper level management.
  • Ask for reference letters from former supervisors when you leave a project.