Around the world, contractual jobs are in higher demand than ever. The pandemic has boosted the appeal of these arrangements in India, too. But why are more and more people abandoning fixed salaries?

Permanent vs. Contractual

Permanent jobs give a sense of security. Employees know how much they will get each month, and how many hours they will spend in the workplace. The company also handles all deductions. In comparison, contracting involves a fixed period of time (3-12 months on average). Contractors are invited to fill a skill-based gap, to substitute for an employee on maternity leave, or to upskill the team.

This logic works in any industry, but the technology sector is leading the way. As novel technologies are growing rapidly, this market is constantly creating new opportunities and challenges requiring a particular set of skills. That is when contractual schemes come in handy.

The work of IT contractors meets both the immediate and long-term needs of corporations. Companies may now tap into a large pool of expertise, which eventually contributes to economic growth around the world. Here are three main reasons accounting for the trend.

1. Work-Life Balance

Contractual jobs usually come with flexible schedules and working conditions overall. Therefore, they are most suitable for those who are striving for a balanced life. This relieves some of the work pressure, so contractors can perform at optimum capacity.

Contractual work allows you to choose who and when to work for. You do not have to get stuck in an uninspiring or poorly paid role for years just because promotion is not possible. Contractors always have a choice and they are free to make it. In addition, all contracts have a fixed time. Therefore, one can always take a vacation in between your engagements. In this regard, you are your own boss.

It is the dream of many professionals. Self-employed individuals like financial traders are entirely responsible for their income. They decide when to start and finish each trading day.

In recent years, systems like Forex trading have been booming in the country, as they allow absolute freedom. Traders work on their own terms. They monetize knowledge, making a profit from home or even on the go — just by looking at the bullish candlestick in India and making the right moves in the market through a broker like Forextime.

Thus, contract-based jobs represent the intermediate stage between fixed employment and entrepreneurship. Although there are still reports to send, you define how, when, and who to work for. In addition, you can be hired by large reliable corporations that meet their obligations to the letter.

2. Ever-Changing Work Environments

Contractors are not tied to a single company. They are always moving from one business to another, thereby exploring new industries, technologies, and office cultures. Hence, if you get bored with monotony easily, contractual work could be the best option for you.

Exposure to different sectors means contractual employees have better opportunities to become experts faster. They gain extensive knowledge taking on challenges and different environments. As a result, companies that hire them save time and resources, as they do not need to organize training, at least on a wide scale.

Contractual jobs enable companies to maintain fast-paced operations and introduce flexibility. These workers save businesses a lot of time and money as they do not require any upskilling programs.

3. Better Pay

The contractual work environment is particularly dynamic. These people are evolving and learning new skills all the time. Thus, they have more opportunities than regular office employees by definition. Organizations are attracted by highly developed skill sets.

Remuneration is substantial, as contractors are not entitled to perks like medical insurance or paid leave. They also need to pay taxes on their own. Instead of benefits, they are paid more to cover such expenses — often, two times more than what regular workers get.

Contractual Work in the Post-Pandemic World

When the going gets tough, contractual employees are the first to get hired. Why? Because companies cannot afford to take on permanent employees. Instead, they opt for highly skilled contractors to fill specific positions. This happens in any economic downturn, particularly in such global crises like the present one.

Increasing numbers of companies and individuals become engaged in the gig economy. Its rise means the paradigm is shifting. More and more job roles are now performed by contractors who do not require any perks.

All these benefits explain why the contractual job market, which was limited to a number of industries in the past, is now booming. The pandemic of 2020 highlighted many benefits of these alternative work schemes. As the world slowed down, they became evident. Now, contract-based work is part of the new normal.

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