I applied for a "contract" position at a tech company, not really knowing what that meant.

Anonymous

March 25,2022 at 6:08PM UTC

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I applied for a "contract" position at a tech company, not really knowing what that meant.

I was asked to interview and was told that "contract" means that I won't receive a benefits package. I'd love to know why it could be beneficial to take on a contract position.

(A little background - I'm trying to transition from higher ed to tech. I have four years of marketing experience post-career gap (to raise my kids) and just earned my master's degree.)

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AnonymousMarch 25,2022 at 7:49PM UTC
Contract work arrangements were really meant to be used by companies to engage freelancers or consultants on per-project work. Employers have taken this ball and run with it as a means to not have to give employees benefits (including one's ability to claim unemployment in many cases).
The only potential benefit to the employee in most cases is that if you don't need the benefits (because you have benefits through a partner or another job, and don't need retirement because you have your own IRA, or an account through another employer) is that you get experience in the field which in theory will allow you to get a regular position afterward but it's not guaranteed.
AnonymousMarch 25,2022 at 9:49PM UTC
Being a contractor allows both parties to test out the fit to see how well it works.
There is also freedom in that either party can leave with no downside. You are usually paid considerably more because the company doesn't have to offer benefits and perks.
AnonymousMarch 25,2022 at 9:59PM UTC
I am not a fan of contract employment for some of the reasons other commenters have noted - no benefits and thus, the company has made no real investment in YOU. I think this situation can work if you have multiple other contracts ("clients") going at one time and you are making considerable money at it. Otherwise, I often think that it is a system that does not benefit most of us but the highest-paid "consultants." One option is that you can take this company on as a client while you seek a full-time job with salary and benefits.
Sarah Cleveland, SPHR, ACCMarch 25,2022 at 10:12PM UTC
Sometimes contract employment is a good option for people who are looking to have something more temporary or during a transition. Sometimes the hourly rate may be higher, due to the fact that benefits are not included. If you are looking for a place / role where you can be longer-term, contract may not be the best option. But if you’re interested in pivoting careers or trying a new place out without wanting to be somewhere long-term, it could be a good fit.