In the modern work landscape, we're all looking for flexibility.
Full-time jobs are not the only option anymore, and companies are turning to contractors to get top-tier talent without the full-time commitment. On the other hand, professionals are loving the freedom that comes with this setup.
So, what exactly is a contractor job? Is it the same as freelancing? And why are so many companies choosing contractors over traditional employees?
Let's dive in!
Have you ever thought of a middle ground between full-time employment and freelance work? Well - that's pretty much what makes contractor jobs interesting.
Unlike traditional employees, contractors are hired by a company for a specific project or period, and they have the opportunity to work independently. They usually don't receive the benefits that employees enjoy (think of health insurance, for example), but they are compensated for the work or services they deliver without the limitations of being a full-time company employee.
It's no surprise that contractor jobs have become a popular choice for startups and small businesses. These smaller companies, especially those building global teams, are increasingly looking at contractor roles to bring in specialized skills from around the world without any limitations.
For companies, hiring contractors is a total game changer.
Contractors offer specialized expertise when needed without the overhead costs of a full-time employee, and this setup is perfect for startups that want to scale their teams for specific projects.
Also, contract jobs are a perfect match for global teams. Hiring contractors invites businesses to tap into a vast international talent pool, allowing them to find the right person for the job regardless of where they live.
Then there's the cost savings part. Contractors handle their taxes and are typically not provided with employee benefits, which can make everything smoother for companies. And because contractors work on a project basis, employers pay only for the services they need, making their finances more predictable.
If you're a candidate looking for your next opportunity, think of contractor jobs as a combination of freedom and structure.
Unlike full-time employees, contractors often set their own schedules, decide on projects, and choose how they prefer to work, allowing them to establish a work-life balance that works for them. This kind of autonomy is especially interesting to people who want to balance work with other life goals, or professionals who just like the freedom of having different projects to choose from.
You may be thinking, if contractors work for a single company, how is it not the same as being a regular employee? Well, there are some key differences. Let's go through some of them:
While contractors may work consistently with a company, they’re often not tied down by the same long-term commitments and company-specific policies as employees. Their relationship with the company depends on the duration of their contract, which could range from a few months to a few years, so job security is a bit different.
Contractors are usually brought on to work on specific projects, and they’re given more autonomy to work independently. Employers rely on their expertise without micro-managing every step, and this way they get the results while letting the contractor handle the process.
Since contractors aren’t employees, they usually handle their taxes and may not receive employee benefits like health insurance or paid time off. However, they tend to make up for it with higher pay rates that help them cover those extra costs.
Yes, contractors are similar to freelancers, but not quite! Both types of jobs are similar in terms of autonomy and freedom, but there are some factors that make them different.
Contractors often have ongoing commitments with a single company, while freelancers tend to juggle multiple clients with different projects. Contractors might feel more like an actual part of the team, even if they’re not officially on the company payroll.
Contractors usually work under a formal contract with set expectations. They are generally hired for defined projects and may work with more oversight than freelancers, who often tackle one-off assignments with minimal supervision.
Freelancers handle their own business, from taxes to invoicing. Contractors, however, may work on contracts that define their responsibilities, scope, and payment terms in a more formal way.
Not all roles are a good fit for contractor agreements, but some are practically made for it! Here’s a look at some roles that are commonly hired under contractor terms, especially within remote and global teams:
So, how do you make the most of a contractor relationship? Here are some of our best tips:
For companies, contractor agreements offer flexibility, access to a global talent pool, and cost savings. For candidates, they represent a ticket to joining exciting projects and international teams without sacrificing flexibility with a full-time office job. Whether you’re a business owner looking to grow your team or a professional seeking new work opportunities, contractor roles might be the key to achieving your goals—on your own terms.
Looking to hire your first international contractor? We can help. Schedule a discovery call and get started today!
