Making the Switch: Perm to Contract

Making the Switch: From Permanent Employment to Contracting as a Life Sciences Professional – What You Need to Know

In partnership with Fenero Contractor Tax Solutions

Welcome to the first edition of our Contracting Insights Series, brought to you by Ascend Project Management, with expert insights from Fenero Contractor Tax Solutions. This series is designed to support professionals considering or beginning a career in contracting. Security is the top reason candidates hesitate to explore contracting, they're used to the predictability of a permanent role with monthly pay and long term perks, but below we hope to address some of the top items to consider before making the move from permanent to contract work.

What to consider?

The idea of contracting is an exciting one, more money, more control, and greater variety, but it’s important to understand both the pros and cons before taking the plunge. With the right preparation and guidance, contracting can be a highly rewarding and flexible career path.

Before you embark on your contracting journey, here’s a breakdown of the key things to consider, with insights from our recruitment and tax experts.

Advantages of Contracting

Generous Pay & High Demand

Contracting often translates to a fatter paycheck compared to permanent roles. With skill shortages in many industries, contractor rates are climbing. And with expert support from tax specialists like Fenero, contractors can further boost their take home pay by making the most of allowable deductions and other tax planning and wealth management opportunities.

Greater Choice and Flexibility

Contractors enjoy more freedom over the types of roles, projects, and clients they work with. What might be seen as “job-hopping” in permanent employment is an asset in the contracting world, highlighting adaptability and breadth of experience.

Opportunity to Rebalance

In this rapidly evolving professional landscape, many professionals are reassessing their work life balance. Contracting gives you control over your schedule, with the option to take breaks between contracts to travel, upskill, or simply recharge.

Broader Skill Development

Frequent exposure to different environments, tools, and processes helps contractors stay sharp and adaptable. Over time, this experience can make you more valuable in the job market and open up senior or niche contracting opportunities.

Challenges to Consider

You need to get ready to sell yourself.

Unlike permanent employment, contracts have a fixed end date. Contractors must be comfortable with actively seeking new opportunities. This is where a strong recruitment partner like Ascend Project Management becomes essential. We will work with you to ensure you’re getting lined up with the right opportunities before the end of your contract.

High Expectations

Contractors are usually brought in to deliver results quickly. Companies expect you to hit the ground running, so having a solid skillset and relevant experience is crucial to thrive. Similarly, few paths offer the same upskilling potential as contracting, you sharpen your skills by learning from a variety of teams, systems, and projects.

Reduced Employment Benefits

Contracting rates can often be lucrative, and while you will earn more you’ll need to account for unpaid holidays, sick leave, and pension contributions. A good contractor accountant or umbrella company provider (like Fenero) can help structure your finances to accommodate for these and figure out if it is the right option for you.

Frequently Asked Questions

Here are some common questions from first time contractors, answered by our team and the experts at Fenero:

How does contracting work financially? Most contractors either work through an umbrella company or set up their own limited company. Each option has pros and cons, and we help contractors understand which structure best suits their goals and lifestyle, but are often a lot more straightforward than people imagine.

Do I lose job security?

There is an element of risk, but in high demand fields, good contractors often have more opportunities than they did in permanent roles. Staying proactive and building relationships with recruiters helps keep work consistent.

What about things like annual leave and sick pay?

Those benefits don’t come as standard, but contractors often compensate with higher rates. In Fenero we can assist with your financial planning and can help you maximise your income while still providing for things like income protection or pensions. 

Summary: Is Contracting Right for You?

Contracting isn’t a one size fits all path. It can be highly empowering, financially rewarding, and varied, but it also comes with greater responsibility and a need for resilience.

If the administrative side seems daunting, or you’re unsure how to structure your finances, Fenero can help lighten the load, allowing you to focus on the work you love.

What’s Next?

In our next installments we will be touching on topics such as claiming expenses, applying for a mortgage as a contractor and using a limited company to maximise your wealth and earnings. Subscribe to the newsletter to ensure you don’t miss our expert advice and market insights on all things contracting in the life sciences sector.

Explore current contract roles – AscendPM.ie / clairebrogan@ascendpm.ie

Get in touch with a tax expert – hello@fenero.ie | www.fenero.ie

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