Should You Leave a Full-Time Job for a Contract Position?

You have to remember that salary is not the only benefit in a full-time job. Research findings comparing the work attitudes of full-time and part-time employees have been inconsistent and inconclusive. Furthermore, empirical studies have tended to be atheoretical, and there are few convincing psychological explanations to explain differences where found.

Their compensation at entry level varies but they are eligible for raises and are paid on a schedule rather than only after completing projects. Full-time employees are also promised benefits like health insurance and can fully utilize the company’s equipment or software to efficiently complete projects instead of relying on their personal technology. A full-time job is also known as a permanent job role where the companies hire the employees and expect them to have a long and lasting association. Most companies expect their employees to work 5–6 days a week, and this totally depends on the company’s work and schedule. A full-time job requires the employee to be present between working hours and working days.

What Do Employers Need to Consider when Hiring Contract or Full-Time Workers?

The best part is, if you work with a staffing and recruiting partner like KORE1, a team of industry experts will handle the contract search for you– and in the current job market, there’s no shortage of jobs. With this additional free time, you’ll be able to spend time on what really matters– your current projects– instead of focusing so heavily on future endevors. Our free tool makes it easy to compare the differences between health insurance options. You can easily compare deductibles, premiums, and coverage levels to find the best possible health insurance plan for your employees and your contractors.

• Given that millions of Americans are currently out of work, employers will want to make sure they get the right hire in the right job, at the right time.
• This number is important, because it tells you how many hours you’re guaranteed on a weekly basis.
• All of these add up to additional costs for an employer, which many employees take for granted.
• Because making the wrong hiring decision can be costly, employers want to make sure they know what they’re getting in an employee.

The person at your company who handles human resources will be happy to help. When you’re on the job hunt, one of the first questions you’ll likely need to ask yourself is whether you want to find a part-time job or a full-time job. Or perhaps you’ve been working part-time for a while, and your employer has asked if you would be interested in a full-time role. It also shows recruiters that you have a focus in one specific discipline or industry.

What Happens When the Contract Ends?

But for many individuals working with a staffing firm or recruiting agency, contractors receive benefits through the agency if working as a W-2 employee. The ACA is the only federal law that explicitly defines a full-time employee. That 30-hour-a-week definition only applies to an employer’s health insurance responsibility and doesn’t govern how you classify employees for eligibility for other benefits. However, because of this requirement, it might be easier on your record keeping to set your full-time cut-off at 30 hours across the board. ALEs are any employers that have an average of 50 or more full-time employees in a year. This includes “full-time equivalent” employees, which is a group of employees whose hours add up to those of a full-time employee.

Take for instance the oil and gas industry – service companies that drill oil wells like Halliburton tend to outsource much of the work to contractors. Mainly because the price of oil fluctuates, and having a very specialized full time employee in a down year could mean they have nothing to do. If a company has a workload that tends to fluctuate or be seasonal, it might make sense to look into contract workers. Contract employees are also called freelancers, gig workers or consultants.

Questions to ask about a contract position

They may not even know they could get healthcare, dental, vision and a 401(K) while in a contract position, if they are employed by an employer of record like FoxHire. If they look at contract staffing with an open mind, candidates may be surprised at the opportunities available. Though job seekers might be scared off by the idea of a contract-to-hire job, these types of jobs aren’t going anywhere. In 2018, nearly 16.8 million workers were in contract-to-hire roles—that’s up from 15.5 million in 2017. Fortunately, these flexible roles can have benefits for both employers and employees.

The Family and Medical Leave Act of 1993 (FMLA) entitles employees to unpaid, job-protected leave for circumstances including the birth or placement of a child, long-term illness or care for a family member. A few federal laws govern your responsibility as an employer to your employees based on the hours they work. Culturally contract position vs full time in the United States, we imagine a full-time employee as someone who works around 40 hours a week. But that classification isn’t federally regulated in most cases, with the exception of the Affordable Care Act (ACA). BambooHR provides a one stop shop to manage data, hire talent, run payroll, and help employees thrive.

We’ll dive into exactly what contract jobs you should include or leave off your resume. And we’ll provide tips to ensure each one showcases your adaptability, resilience, and ability to deliver value across different roles and industries. H1B petition filed employees can take up jobs which are both full time as well part time. There is no such criterion which demands to work for minimum number of hours. It is also possible for an employee to have multiple H-1B employers, as long as each employer submits an H1B petition. Both the Full-Time and Contract Jobs have their own pros and cons, the choice is equivocal in nature.

In today’s rapidly changing world, people have more flexibility when choosing between part-time and full-time jobs. There are many differences that we can discuss between part-time jobs and full-time jobs. Many people prefer to do part-time jobs, and many prefer to do full-time jobs, depending on their choice and comfort. Both options have unique advantages and disadvantages that are completely dependent on one’s choices and lifestyle goals. Below are some of the common advantages and disadvantages of full-time and part-time jobs. What are some of the differences between part-time work and full-time work?

Contract positions are especially appealing to those who are caregivers, people who have multiple jobs, or those who just want a greater sense of work-life balance. As a W-2 contractor, you’ll be hired for a predetermined amount of time to complete a specific project for the company. Unlike full-time employees, who may end up doing work outside their job description, as a contractor you will have a clear role and set of responsibilities. If you decide to offer your contract workers health insurance, it could hurt your bargaining power with the health insurance company. You probably have a discounted bulk rate from the health insurance company because you have many employees with long-term health insurance plans. Contract employees are typically only there for a few months, which complicates things.

Before choosing between a contract or full-time position, the vital point is to know all the details of the job. But if you do continue or choose to remain in a contract role, Orr ensures that contract work is not job hopping. She also emphasizes that regardless of your time with a company, it’s part of your career story and has made you the professional you are today. By contrast, if you want a higher salary or better benefits, and if you can dedicate most of your daytime hours during the week to a job, then full-time might be your best bet.