In these hard times when you find yourself out of work and looking you have a few options. But how do you know which is the best one? Today I will take a look at several options.
The options available are temporary work from an agency, a direct hire permanent position, a contract position, and self employment. We'll start by defining each option and then listing the pros and cons of each.
The first and most common option today is a direct hire permanent position. This is defined as when a company hires you directly to a permanent post in the business. This means that if you manage to survive through layoffs, firings, and all the typical workplace politics you can possibly retire from the company.
So, what are the pros and cons of being hired directly to a company? Let's take a look. A permanent job offers (potential) job security and stability. This can be a major source of peace of mind. Most companies that directly hire tend to promote from within, so your chances of moving up the career ladder are very good. The pay overall will generally be higher than the other options for the field the company is in. The next great thing you will find with this type of employment is benefits. Like health insurance, raises, holiday pay, and some sort of investment plan for retirement. Whether it's a simple 401K or an employee stock purchase plan. Your rights as an employee directly hired to a company are much better than employees who are contracted or temps. Unemployment is much easier to get in some states if you lose your job with this type of employment. Transferring to another location should you move is quite simple as well. Some companies also help with costs of some further education if you take classes that will coincide with the company's aims.
So, you may be wondering now what can the cons possibly be? Well, there is always a chance of a layoff. Or, you may hit a wall on the career ladder or cap on salary that you can't get past. It is also possible that you may get bored with the same old routine every single day.
The next employment type we will look at is temporary work. Temporary employment is defined as a job that you work at for a set amount of time and then are released. As defined in Wikipedia: Temporary work or temporary employment refers to a situation where the employee is expected to leave the employer within a certain period of time. Temporary employees are sometimes called contractual or seasonal or freelance or temps.
There are literally thousands of temporary agencies that have business agreements with companies to provide the manpower they need. These companies make a profit by paying the temp less than what they are paid by the company you will work at. They look at all the skills you have and find a company with an opening that fits your skill set.
The pros of this type of arrangement for you, the worker are that you have a company that is your agent so to speak. They will find the work for you if it is available. You can work any time frame from one day to an indefinite amount of time, provided you adhere to the policies. It is possible that a company may like a temp worker so much that the worker is hired onto the company. So, the pros are possible direct hire by the company, flexibility to work when you want, and to work in various environments. It's a good way to learn a new trade and get your foot in the door at a good company.
The cons are that you never know when the assignment may end. You may not have steady work to pay the bills. You may end up at a company you hate to be at. You will not get any raises or benefits with this kind of employment. No 401K, no vacation days, no accrued sick time, no health insurance from the company. Also, at the end of the assignment, no unemployment can be collected.
Next up is contract work. The definition of a contract worker is someone who is not an employee of a company. He is a self-employed person who operates his own business usually as a sole proprietor. He/she is hired for a specific task or project, sets their own rates and pays their own income taxes. A contract worker must find their own clients and complete a specific task for them. You are not bound by the control of the company.
The pros of being a contractor? Control your own hours and choose your own clients. You will not necessarily be committed to only one company at any given time. You may concurrently work for as many companies as you choose. You have the right to refuse additional work from any company if that is your choice. You are free to work for who you choose to work for. You can negotiate your pay and hours. There are multiple cons to this type of employment. The first thing I can think of is that you have to pay your own medicare and federal taxes directly rather than having it taken out of your check. You have to find your own clients. You have again no benefits that are company provided. No 401K, no vacation days, no accrued sick time, no health insurance from the company. Also, at the end of the contract, no unemployment can be collected. You are bound by a contract to complete a task for a client. This is very similar to self employment and is actually a form of self employment.
Sounds great right? Well, let's look at some of the cons of self employment. No outside accountability. No boss looking over your shoulder also means it is entirely up to you to stick to your goals. It can get very lonely at times. No coworkers to discuss troubles with. What about job selection? Finding a job for yourself where you are the boss can be quite challenging. What about insecurity? No benefits, it's all up to you to invest in a retirement plan, and get your own personal health insurance.
Now, not everyone will agree with my pros and cons lists. Each person will look more favorably on their own personal favorite form of employment. I hope this blog entry has helped to define and give a bit more information on the types of employment available. It's up to each person to decide what is right for them at the various stages of their life. My next blog topic will discuss health insurance. What exactly is health insurance and how does it work? What is available out there as far as private and non private options? What is the difference between an HMO and a PPO plan? Do I have to take what is offered at work or are there other options out there? It will take me about a week to gather all the information on this particular topic.
Sources for this blog: Wikipedia, suite101, and of course personal experience. Ofcourse, I hope the shameless promotion I will now perform will not dissuade you from continuing to follow my blog. If you found my blog helpful and informative donations (as in voluntarily sending me money) are always appreciated and may be sent to my paypal, tmmyprl@aol.com.
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