Things you need to know about contracting

There are two (2) key reasons why companies work with Contractors:

1) Due to an urgent need for a resource which the organisation is unable to add as a permanent head count

2) A resource needed for an allocated project which needs to be completed in a certain time frame

Is your role safe for the duration of the contract?

In both cases described the budget would not be approved unless the position was safe. The fact that the approval is given even though they are unable to grow the staff count means that these hires are business critical therefore you should feel confident that your position is vital for the team.

Do I get a premium for being a Contractor?

You can often expect a premium. There is an exponential increase in the number of local candidates who are interested in contract roles. This is due to a closer match in benefits when compared to permanent roles and the compensations being more attractive.

What happens at the end of the contract?

Most of the projects that we work on offer long-term job opportunities,wherein the main option is to extend the term as you near the end of the contract.

If the organisation has its head count increased there is also the possibility of converting your role to a permanent position. In this case your overall package will increase due to the added benefits; therefore you can expect a similar base salary or depending on the benchmarking within the organisation there may be a drop as the contracting premium will no longer apply.

What are the chances of being converted to permanent employees or would it be based on that contract?

‘Conversions’ and ‘extensions’ vary from organisation to organisation. If there is a need for a member of staff in the first place and not just due to a specific project, it is much easier or the organisation to extend a contract or turn the role into a permanent one. In certain cases, you will know if your contract is going to be extended or turned into a permanent role even before you are hired which helps in the long run but this differs for each organisation.

Career progression?

Working as a contractor will give you as much exposure to promotion as a permanent employee. If you hit the ground running and you are capable of taking on more responsibility you will be put forth just like a permanent employee.

Do I get CPF? What about holiday and medical leave?

Your CPF is not affected and will be the same as if you were in a permanent role. When it comes to holiday and medical leave they will be agreed before you start your contract. Majority will have the same for both types of employment.