Pro and Cons of contracting

Contracting to the Contractor


  • You will earn a lot more than what you earn in a permanent position
  • As a contractor, you will often be at the sharp end of projects. The projects may be time critical.
  • Gain invaluable experience


  • There will be a requirement for you to meet tight deadlines this can cause a lot of stress
  • This may not be your typical 9-5 job
  • You should be able to cope with uncertainty.

Contracting to the Client


Reduced employment costs

  • No Workers’ Compensation or Unemployment claims
  • No employee benefit costs, such as medical insurance, life insurance, and superannuation contributions.
  • No added expense for paid time off, such as annual leave, carers leave and sick leave
  • No unnecessary overhead costs
  • Less training and supervising costs.

Staffing Flexibility

  • Match your staffing levels with your workload and project requirements.
  • Easy to terminate contract staffing assignments.
  • Allows you to assess the candidates ‘real’ skills and fit into your corporate culture prior to a permanent hire.


  • Less control – You have less control over your contractors in comparison to employees. Contractors generally enjoy a certain level of autonomy to decide how best to do the task for which you hired them.