The Benefits of Working Contract Assignments
By Matt Deutsch
EmploymentTools.com Editor

You might be surprised to know that working a contract assignment can provide benefits to your career that working a perm or direct hire position cannot.

In the past, contract or temp positions have been considered less secure as so-called permanent jobs, mainly because there is usually a set date for completion of the project.  That, of course, means the end of the person’s employment with that company, at least as far as that specific contract is concerned.

During the last 10 to 15 years, things have changed dramatically in the workplace and in the job market.  The days of employees working for 40 years at the same company and then retiring with a gold watch and a pension are gone.  It is not uncommon for people to work at multiple companies during the course of their career, and such a trend is no longer viewed as “job hopping” by hiring authorities.  For many high achievers, such a pattern is simply an indication of their continued growth and their progression up the career ladder.

And that’s where contracting comes in.  Accepting a contract position, for whatever reason, shouldn’t be viewed as a step backward—or even sideways—in terms of your career.  In fact, working contract can have a tremendously positive impact on your career overall.  It can be, in essence, an opportunity, an opportunity to learn more, to see more, and to experience more.  And if there’s one thing that companies are willing to pay for, on a contract basis on in a permanent capacity, it’s people with the experience they need to solve their problems.

Top Echelon Contracting, Inc., the recruiter’s back-office solution, has been providing contract staffing services since 1992.  Top Echelon Contracting places people in technical, professional, and healthcare contract positions nationwide and has a tremendous amount of experience in helping candidates achieve their career goals and ambitions.

Debbie Fledderjohann is the president of Top Echelon Contracting.  We sat down with Debbie and asked her some questions about the benefits that contracting offers to employees.

Employment Tools: When somebody works a contract position through Top Echelon Contracting, who’s the employee in that situation?

Debbie Fledderjohann: We become the employer for the candidate and handle all of the administrative, financial, and legal duties associated with the hire.

ET: Does that mean you’re the one who cuts the check for the contractor?

DF: Absolutely, and we make it one of our top priorities to ensure that our contractors receive their paychecks on time, regardless of any delays that might occur at any other point in the process.

ET: What do the employees need to do in order to get paid?

DF: We issue each employee a timesheet with their initial hire paperwork.  The timesheet must be signed by both the employee and the company in order for us to process the payroll.  The deadline is each Monday by 1 p.m., EST.  If the employee faxes their timesheet by the deadline, a paycheck is mailed to their home address each Thursday afternoon.  However, we also offer direct deposit.  With that option, the money is deposited into the employee’s bank account each Friday.

ET: What, in your mind, are the primary reasons that people should consider working on a contract basis?

DF: There are almost too many for me to list.  First of all, there’s the flexibility of schedule that contracting offers, as well as the opportunity to travel more.  Then there’s the fact that you’re paid for every hour that you work, including overtime in accordance with the Fair Labor Standards Act.  With a salaried position, that’s simply not the case.  Along with that comes a weekly paycheck, in contrast to getting paid once or twice a month.

And then there’s the opportunity to increase your technical and professional knowledge.  The projects you complete during contract assignments make great additions to your portfolio, as well as to your resume.  But the experience you receive might be even more important than that.  By gaining exposure to a number of different working environments and situations, you can increase your marketability to other companies in the future.  And in many instances, contract workers are then hired by the companies on a permanent basis.

ET: How often does that last scenario occur?

DF: It’s called a temp-to-perm or temp-to-direct hire situation.  After an employee’s contract runs out, the company has the option of then hiring the person on a full-time basis.  This is becoming a common practice with companies, especially those looking to see how the employee fits into the overall culture of the company.  If the fit is good, they take the next step and hire them full-time.

That’s yet another good reason to consider working on a contract basis.  Not only are contract assignments sometimes extended for an indefinite period of time, they’re converted to permanent positions, as well.  You just never know what can happen when you seize the opportunities that contracting can offer.

ET: What kind of benefits can your contract employees expect to receive?

DF: We offer many different benefit options, and employees can choose any combination they’d like.  They include healthcare, dental, vision, life insurance, AD&D, 401k, and Aflac.  The majority of the benefits can be paid for with pre-taxed payroll deductions.

ET: Can you tell us more about the healthcare benefits that you offer?

DF: We now have two new health insurance plans available to employees who work an average of 30 hours or more per week.  One is a base plan and one is a premium plan.  We have a health insurance benefit summary located online that provides details about both of these plans.

ET: Is there a waiting period for your benefits?

DF: Top Echelon Contracting employees are eligible to receive their benefits on the first of the month after they’ve worked for 30 days.

ET: Debbie, thanks very much for taking the time to speak with us today.

DF: Thank you.  I appreciate the opportunity to talk about contracting.

If you’d like more information about Top Echelon Contracting, you can visit them online at www.TopEchelonContracting.com.  If you’d like to read testimonials from some of the people they’ve played on a contract basis, click here.