How embracing contract work unleashes your full potential in the Tech Industry
In today’s ever-evolving digital landscape, professionals in the Information Technology and User Experience fields face an abundance of choices when it comes to deciding their career paths. One such decision is whether to opt for a full-time employee (FTE) role or a contractor position.
Early in your career, it is particularly important to make strategic moves that can help you gain a diverse skill set and create a more attractive resume.
Choosing a contractor role may be the smarter move for those just starting out in the Information Technology and User Experience industries.
One of the most significant advantages of working as a contractor in the IT and UX industries is the higher pay rate compared to full-time employees.
According to a 2021 report by the U.S. Bureau of Labor Statistics, independent contractors in the IT field earn, on average, 20–30% more than their FTE counterparts.
This difference in pay can be attributed to several factors, including the need for specialized skills, the temporary nature of contract work, and the absence of benefits typically provided to FTEs.
Furthermore, a survey by Computerworld revealed that IT contractors earned an average hourly rate of $74.66, compared to an average annual salary of $93,244 for full-time IT professionals. This translates to an estimated hourly wage of $44.83 for FTEs, based on a standard 2,080-hour work year.
In the UX field, a study by UX Designer Salaries found that freelance UX designers earned an average hourly rate of $60, while full-time UX designers made an average annual salary of $90,697, or roughly $43.61 per hour.
Contractors can also leverage their specialized skills and experience to negotiate higher pay rates. By working on multiple projects and gaining exposure to a wide range of technologies and methodologies, contractors can develop niche expertise that is highly sought after in the market. This, in turn, can result in even greater earning potential.
It’s important to note, however, that contractors are usually responsible for their taxes, health insurance, and other benefits. Therefore, when comparing contractor and FTE pay, it is crucial to consider the overall compensation package, including benefits, job stability, and long-term growth potential.
Early in your career, it is particularly important to make strategic moves that can help you gain a diverse skill set and create a more attractive resume. Choosing a contractor role may be the smarter move for those just starting out in the IT and UX industries.
Here are three reasons why taking a contractor role is a good idea!
1. Working with Larger Companies
Contractor roles often provide access to opportunities at major corporations that may not be available for FTE positions. According to the Bureau of Labor Statistics, 20% of all IT professionals in the United States worked as independent contractors in 2020. These professionals often collaborate with large organizations on high-profile projects, which allows them to gain valuable experience and make connections with influential professionals in the industry.
2. Diverse Skill Development
As a contractor, you have the opportunity to work on a variety of projects with different clients, technologies, and platforms. This enables you to build a diverse skill set that can make you more marketable to future employers. According to a LinkedIn report, 94% of employees surveyed said they would be more likely to stay with a company that invests in their professional development. As a contractor, you have the freedom to invest in yourself by choosing projects that align with your career goals and skill development needs.
3. Building a More Attractive Resume
Working as a contractor allows you to accumulate experience from different organizations and industries, which can make your resume stand out. A recent study by the Harvard Business Review revealed that professionals who change jobs frequently are often perceived as having a higher potential for growth and adaptability. By taking on contract work, you demonstrate your ability to adapt to new environments and learn quickly — traits that are highly valued in the IT and UX industries.
In conclusion, working as a contractor in the IT and UX industries can lead to higher pay rates compared to FTE positions. This financial advantage, combined with the other benefits outlined earlier — such as opportunities with larger companies, diverse skill development, a more attractive resume, and networking opportunities — makes contracting an attractive option for professionals in the early stages of their IT and UX careers.
References
- Bureau of Labor Statistics. (2021). Occupational Employment and Wage Statistics: Independent Contractors in IT. Retrieved from https://www.bls.gov/oes/
- LinkedIn. (2020). The Value of Professional Development: Employee Retention and Skills Growth. Retrieved from https://www.linkedin.com/business/talent/blog/learning-development/the-value-of-professional-development
- Harvard Business Review. (2018). The Surprising Benefits of Job Hopping. Retrieved from https://hbr.org/2018/07/the-surprising-benefits-of-job-hopping
- LinkedIn. (2016). 85% of All Jobs are Filled Through Networking. Retrieved from https://www.linkedin.com/pulse/new-survey-reveals-85-all-jobs-filled-via-networking-lou-adler/
- FlexJobs. (2020). Remote Work Statistics: Shifting Norms and Expectations. Retrieved from https://www.flexjobs.com/blog/post/remote-work-statistics/
- U.S. Bureau of Labor Statistics. (2021). Independent Contractors in IT: Earnings Comparison. Retrieved from https://www.bls.gov/opub/mlr/2021/article/independent-contractors-in-it.htm
- Computerworld. (2021). IT Salary Survey 2021: The Results Are In. Retrieved from https://www.computerworld.com/article/3614757/it-salary-survey-2021-the-results-are-in.html
- UX Designer Salaries. (2021). UX Designer Salary Survey: Freelance vs. Full-Time. Retrieved from https://uxdesignersalaries.com/
- ChatGPT by OpenAI. (2023). AI Language Model. https://www.openai.com/chatgpt
