IT People: How do you feel about Contractor positions vs. Full Time

[Glavinsolo]

I have an interview coming up for an IT contractor position and I feel uneasy about becoming an IT contractor. I have this feeling that future companies that want me full time may be hesitant since I took a contractor position in the past. My take on contractor positions is that you are wanting to be a temporary employee, which is fine for most disciplines but in the IT world it may be seen as a negative since projects need to be seen to the end and support on systems needs to be maintained by competent people. Employee loyalty is low all around so an employee coming from a temporary position in the past may be seen as someone not afraid to turn their backs and take a higher paying position when offered.

BTW this contractor position allows overtime w/ pay, benefits and vacation so those full time perks are included.

Should I be this paranoid?

 

[kevman]

Contractor is better if you don't see yourself retiring at this company. The Overtime pay plus the hourly ( which is likely 30-50% more then what you would be making as an FTE ) makes being a contractor a no brainer.

 

[torpid]

Depends on the company and the position. Contract positions are often as good or better on a resume, IMO. Many companies will hire contract employees because they are easier to get rid of (no union issues or HR overhead). This makes the natural selection process result in contractors having to work harder than FTEs often times. So if you work at a place for 2 years as a contractor vs 2 years as an FTE it can sometimes look more impressive.

I think it would be rare for someone to see your contract position as a negative. Usually it's the company that wants a contractor position to avoid long term hiring / firing issues, not the employee.

 

[Phoenix86]

It's pretty normal for you to get your foot in the door as a contractor and get hired full time from here. At my workplace, that's pretty much the only way to get in.

In short, no, don't be paranoid.

 

[hellokeith]

Most employers understand the nature of IT (booms, busts, outsourcing, etc.), so I wouldn't worry too much. I'd much rather have FTE, but contract is all that is available in my field in this area right now.

 

[JDMnAR1]

I would say that it truly depends on the company. I am currently an FTE at an IT shop that does use a fairly substantial number of contractors. Here, the contractors are king - money is no object when it comes to hiring and retaining them (as opposed to regular IT staff who have not been given a decent raise in 5+ years absent a promotion), and many of them (if not all of them) actually have better office space than a lot of employees. Perhaps even more disturbing to many of us is that it doesn't appear as if they are expected to actually know anything or be able to perfom any specific job duties, as we often times find ourselves fixing their mistakes. In the past I worked at a place that used contractors extensively, but there the dynamic was much more as you would expect, with employees being valued more and contractors getting the leftovers, if you will.

As far as how it looks on your resume, I think the only time it really would have a big impact is if you consistently had short-term contract positions, as that might tend to give the impression that you were not up to the task.

 

[loic2003]

I think contract work would be more varied and interesting, plus gives you a broader scope of experience. If you're employed full time and are effective at your job, there will be times when everything 'just works'. Most companies are cutting back on budgets, so the same hardware lasts a long time, so there's not so much upgrading. It can be dull when you're sitting around browsing ATOT awaiting the phone call with some tard who's resting paperwork on his keyboard so thinks his PC has got a virus or something...

Go for gold. You can always leave!

 

[Descartes]

I've technically been a contractor for almost 4 years now. I know I say this in a lot of IT threads, but if you're talented it's the only way to go, imo.

Benefits:

1) A LOT more money. By a lot, I mean often more than twice what you'd otherwise make.

2) Superior experience, imo. Full-time employees often spend much of their time doing very little, so there's almost a point of intellectual atrophy. This includes technical skills as well. Contracting lets you interact with a lot of people, a lot of companies in a diverse number of industries. You also meet a lot of people, and this goes a long way in extending your professional network. I know of dozens of people I can call on at any time and have a new project in almost every major city in the US.

3) Freedom. That might sound silly, but there is a greater sense of freedom when you're a contractor. I don't have to put up with as much of the corporate bureaucracy nonsense, for example. The expectations are higher in terms of performance requirements, but you do retain a feeling of independence.

Cons:
1) Less benefits. Personally, I couldn't care less. I own a consulting company, have my own investment accounts (that are MUCH better than what any company could ever offer me), disability insurance, life insurance, health insurance, etc. There's absolutely no benefit any company could ever offer me that would make the deal less sweet; however, for some, especially those with medical issues that prevent them from being covered under their own insurance policies, it's a negative.

2) Less stability. After ~10 years in IT, stability is a mirage, imo. I've seen people dedicate their lives to a single company get laid off before they hit their pension. I've seen people let their skills atrophy only to find themselves laid off and subsequently unemployed for years, because the only thing they knew how to do was to support the company they just left. That said, some people like the feeling of being "full-time", and in that sense they feel more secure. Also, as I said above, if you're talented you are never out of work. I know dozens of consultants that haven't spent a moment of time off that they didn't choose. My company actually has to turn projects away since we can't find proper people.

3) No "home." Again, this is mostly a problem of perception. Some people like the feeling of knowing where they're going to be every single day at exactly the same time. They want their little Dilbert calendar at the same desk, meet the same people at the water cooler, etc. If you want rhythm as sure and repetitive as the longest trance song, then contracting isn't likely for you. Contracting is anything but the banal existence of most cubicle dwellers. That said, many times you'll spend years at a single engagement; for example, I've been working with one of my clients for over 2 years, and we have some of our guys here for as long as 5.

I think that's it for now.

<cliffs>
I'm pro contracting.
</cliffs>

 

[y2kc]

Originally posted by: Descartes
I've technically been a contractor for almost 4 years now. I know I say this in a lot of IT threads, but if you're talented it's the only way to go, imo.

Benefits:

1) A LOT more money. By a lot, I mean often more than twice what you'd otherwise make.

2) Superior experience, imo. Full-time employees often spend much of their time doing very little, so there's almost a point of intellectual atrophy. This includes technical skills as well. Contracting lets you interact with a lot of people, a lot of companies in a diverse number of industries. You also meet a lot of people, and this goes a long way in extending your professional network. I know of dozens of people I can call on at any time and have a new project in almost every major city in the US.

3) Freedom. That might sound silly, but there is a greater sense of freedom when you're a contractor. I don't have to put up with as much of the corporate bureaucracy nonsense, for example. The expectations are higher in terms of performance requirements, but you do retain a feeling of independence.

Cons:
1) Less benefits. Personally, I couldn't care less. I own a consulting company, have my own investment accounts (that are MUCH better than what any company could ever offer me), disability insurance, life insurance, health insurance, etc. There's absolutely no benefit any company could ever offer me that would make the deal less sweet; however, for some, especially those with medical issues that prevent them from being covered under their own insurance policies, it's a negative.

2) Less stability. After ~10 years in IT, stability is a mirage, imo. I've seen people dedicate their lives to a single company get laid off before they hit their pension. I've seen people let their skills atrophy only to find themselves laid off and subsequently unemployed for years, because the only thing they knew how to do was to support the company they just left. That said, some people like the feeling of being "full-time", and in that sense they feel more secure. Also, as I said above, if you're talented you are never out of work. I know dozens of consultants that haven't spent a moment of time off that they didn't choose. My company actually has to turn projects away since we can't find proper people.

3) No "home." Again, this is mostly a problem of perception. Some people like the feeling of knowing where they're going to be every single day at exactly the same time. They want their little Dilbert calendar at the same desk, meet the same people at the water cooler, etc. If you want rhythm as sure and repetitive as the longest trance song, then contracting isn't likely for you. Contracting is anything but the banal existence of most cubicle dwellers. That said, many times you'll spend years at a single engagement; for example, I've been working with one of my clients for over 2 years, and we have some of our guys here for as long as 5.

I think that's it for now.

<cliffs>
I'm pro contracting.
</cliffs>

Agreed. I was on contract for 5 years and made twice the amount my FTE co-workers did. Recently forced into an FTE position and will be out of here as soon as I find another contract gig.

 

[SlowSpyder]

I've contracted and have been a full time employee since I've been in the IT industry. Both have pros and cons. I liked contracting better in general. I am a full time employee now, but contracted for about 8 months here before I got hired on. I don't like the bs that comes with being an employee (all emp. meetings that are a waste of time, stupid review processes that are manditory, etc.) but I do like knowing how much my paycheck is every pay period without having to worry about if I missed a day. I also like the medical benefits that come with this job, but that can be hit or miss either way. If it wasn't for the excellent 401k and medical benefits (they cover my son and fiance though we are not married yet) I'd probably have moved on to another contracting job. But, then again I don't think I've found an employer that I truely like yet, so that plays into the way I look at things.

 

[pontifex]

contracting sounds like it would be more interesting, doing different things or going to different companies.

i like things to be stable though so i doubt i would ever do contract work.

 

[FoBoT]

we have hired plenty of contractors over to FT positions (the good ones that we want to keep around)

 

[GeekDrew]

I wouldn't be paranoid to be a contractor, it's the only way to "get in the door" at many, many companies.

 

[Scarpozzi]

Contractor usually equals crappy benefits, or no benefits... So it totally depends on whether or not you have a family or have a spouse that can carry you on his/her insurance.

As for pay, usually contracting pays more and offers more OT, but can require more unexpected work. For example, that server that goes down on Christmas morning will cause you to have to go in....wheras, full time staff will get to enjoy their vacations. It's like being the bottom of the barrel for respect from most employers unless they plan to offer you a full time position eventually... And often, they make false promises of this.

I personally haven't ever contracted before, but know plenty of people(Unix Admins/Programmers) that get laid off every 1-2 years and are constantly renegotiating for lower wages. It's an ugly racket to get in unless you have experience and specific expertise.

 

[torpid]

Originally posted by: Scarpozzi
Contractor usually equals crappy benefits, or no benefits... So it totally depends on whether or not you have a family or have a spouse that can carry you on his/her insurance.

As for pay, usually contracting pays more and offers more OT, but can require more unexpected work. For example, that server that goes down on Christmas morning will cause you to have to go in....wheras, full time staff will get to enjoy their vacations. It's like being the bottom of the barrel for respect from most employers unless they plan to offer you a full time position eventually... And often, they make false promises of this.

I personally haven't ever contracted before, but know plenty of people(Unix Admins/Programmers) that get laid off every 1-2 years and are constantly renegotiating for lower wages. It's an ugly racket to get in unless you have experience and specific expertise.

My experience is pretty much the opposite of the above quote. Contractors are actually not even allowed to work on holidays without express written approval. If they get it, they get paid an astronomical overtime rate. FTEs on the other hand could in theory work on a holiday.

I have never nor do I know of any friends or colleagues who ever had to renegotiate a lower wage. I do know of people that got the ax but they were not as skilled / talented. But they still got other jobs at the same rate or better.

Contracting benefits can be as good or better than SOME FTE benefits. It depends on teh company you are employed by and your client. My client has great benefits so contracting seems comparatively worse. But I have FTE friends whose benefits are not as good as mine. It just depends. If you have crappy benefits as a consultant/contractor, that's because you chose a crappy company like TekSystems or similar.

 

[rudder]

When looking at straight pay a contractor will always win out. It will even out with job security. When the crunch comes the contractors will be the first to go.

BUt as most have said being a contractor is a way to get your foot in the door. Think of why the contractor is there in the first place. usually they are doing a job that none of the full timers can do. The company may decide they want to keep you permanently.

 

[spidey07]

I can't see any negative a company would look at your resume for being a contractor. Normally contractors are the "experts" in their field. They abandon the stagnation of a full time job to pursue the MUCH higher pay (2-3 times) of being a contractor and the varied and instense exposure you receive.

In many ways, depending on the culture, the contractors/consultants are reverred and held in much higher regard than the "bought and paid for" full time people.

 

[Glavinsolo]

Thanks for all the input, its my first contract position and heres to hoping it goes well.

 

[Allanv]

Originally posted by: Descartes
I've technically been a contractor for almost 4 years now. I know I say this in a lot of IT threads, but if you're talented it's the only way to go, imo.

Benefits:

1) A LOT more money. By a lot, I mean often more than twice what you'd otherwise make.

oh yes

2) Superior experience, imo. Full-time employees often spend much of their time doing very little, so there's almost a point of intellectual atrophy. This includes technical skills as well. Contracting lets you interact with a lot of people, a lot of companies in a diverse number of industries. You also meet a lot of people, and this goes a long way in extending your professional network. I know of dozens of people I can call on at any time and have a new project in almost every major city in the US.

You also get called on to share your experience if another depatment is having difficulty because 9 times out of 10 there is no one else that can do the fixing and your classed as a fresh mind

3) Freedom. That might sound silly, but there is a greater sense of freedom when you're a contractor. I don't have to put up with as much of the corporate bureaucracy nonsense, for example. The expectations are higher in terms of performance requirements, but you do retain a feeling of independence.

If you get bored you just dont renew the contract, as for the corp stuff the company i am with now i refuse to be on the HO distribution list so i dont see the bullshit and i have more freedom than the FTE as i cant be asked to sign a Internet or email usage policy

Cons:
1) Less benefits. Personally, I couldn't care less. I own a consulting company, have my own investment accounts (that are MUCH better than what any company could ever offer me), disability insurance, life insurance, health insurance, etc. There's absolutely no benefit any company could ever offer me that would make the deal less sweet; however, for some, especially those with medical issues that prevent them from being covered under their own insurance policies, it's a negative.

For me in the UK health cover is free anyway as for a pension well thats another story

2) Less stability. After ~10 years in IT, stability is a mirage, imo. I've seen people dedicate their lives to a single company get laid off before they hit their pension. I've seen people let their skills atrophy only to find themselves laid off and subsequently unemployed for years, because the only thing they knew how to do was to support the company they just left. That said, some people like the feeling of being "full-time", and in that sense they feel more secure. Also, as I said above, if you're talented you are never out of work. I know dozens of consultants that haven't spent a moment of time off that they didn't choose. My company actually has to turn projects away since we can't find proper people.

been contracting for 9 years, this current contract i came for a AD migration for 3 days that was 7 months ago and i was just extended but i enjoy it

3) No "home." Again, this is mostly a problem of perception. Some people like the feeling of knowing where they're going to be every single day at exactly the same time. They want their little Dilbert calendar at the same desk, meet the same people at the water cooler, etc. If you want rhythm as sure and repetitive as the longest trance song, then contracting isn't likely for you. Contracting is anything but the banal existence of most cubicle dwellers. That said, many times you'll spend years at a single engagement; for example, I've been working with one of my clients for over 2 years, and we have some of our guys here for as long as 5.

Home is where the heart is and can always be moved around

I think that's it for now.

<cliffs>
I'm pro contracting.
</cliffs>

 

[Patt]

Experience matters, not whether it is contract or FT based. Go for it if it is something more interesting to you. As for myself, I'm working on trying to get myself a contract position as well that will offer me a bit more freedom

 

[trmiv]

Depends what kind of contractor you are. If you are the the talented type that can basically write your own checks, it's great. If you are just one of the many IT drones that companies hire instead of FTE's so they are able to can your ass at a moments notice, it's not so great.