Making the leap from permanent employment to contracting is a bold and exciting career move. Contracting offers flexibility, variety and access to new opportunities, but can also come with a unique set of challenges.
For many, the biggest hesitation is stepping away from the perceived security and benefits of a permanent role. But the good news is, Contracting can be incredibly rewarding and exciting. With the right preparation and mindset, you can navigate the shift with confidence.
Here’s a practical guide to help get you started.
1. Understand what contracting really means
Clients typically engage a contractor for three main reasons:
- To plug a gap while a permanent hire is being made
- To lead or support a defined project
- To support a business during peak periods
As a contractor, you’re expected to hit the ground running and deliver immediate value. You’ll usually be engaged on a daily or hourly rate, with contract lengths ranging anywhere from one to twelve months.
Contractors are commonly self-employed or engaged through an agency or consultancy. Unlike permanent employees, you’re responsible for managing your own tax, ACC levies, insurance, and business expenses, and you won’t receive traditional employee benefits such as sick leave or annual leave.
Understanding these shifts is essential, because in many ways you’re not just a contractor, you’re running your own small business.
2. Be clear on your motivation
Before making the move, it’s important to ask yourself why you want to contract.
Is it for more flexibility? Exposure to new industries or roles? To bridge a gap between permanent positions? Or are you building a portfolio career?
Having clarity on your motivation will help you choose the right contracts and make it easier for agencies or consultancies (like us!) to connect you with suitable opportunities.
3. What financial implications do you need to consider?
- Rates: Contractor rates vary depending on the nature of the role, the organisation, length of contract, and market conditions. Rates are typically higher than a permanent salary to compensate for the lack of benefits and additional responsibilities.
- Payment cycles: Be aware of how and when you’ll be paid. Some clients pay weekly, others monthly, so budgeting becomes even more important.
- Inconsistent workload: Contracting can come in waves. You may have busy periods followed by quieter months, so it’s wise to have a financial buffer in place.
For a deeper dive into the financial side of contracting, we recommend checking out Hnry’s Contractor Guide.
Bonus: If you’re contracting through Brannigans, you’ll receive a $100 credit when signing up with Hnry.
4. Setting your rates:
Setting your rate is both an art and a science. When determining your rate, consider:
- The current market
- Your skills and experience
- The scope, complexity and length of the contract
- The added risk of being a contractor without standard benefits
If you’re unsure, consult with your network or talk to one of our Executive Contracting team – we’re happy to offer guidance.
5. Build your network and reputation
In the world of contracting, relationships are everything.
Reach out to your professional network, attend industry events, and stay active on LinkedIn. Referrals and recommendations go a long way in helping you secure contracts.
Make sure your online presence is up to date and clearly communicates the kind of work you’re looking for.
How can Brannigans support you on your contracting journey?
At Brannigans, we work with a wide range of organisations seeking skilled professionals for short and long-term contracts. Whether you’re exploring contracting for the first time or you’re a seasoned contractor looking for your next challenge, we’re here to help.
Get in touch with Josie Steyn in our Executive Contracting team to learn more about how we can support you, connect you with meaningful work, and make the transition as smooth as possible.
Here’s a snapshot of what our Contractors say about us:
“Great communication. Very approachable, easy to deal with and prompt replies to emails”
“Very helpful team – nothing is too much trouble”
“I have always felt supported by the professional and friendly team at Brannigans”
“All roles have been a good match. It is always nice to know Brannigans look out for their contractors and put them forward for the right roles”
