Insight

Lawrence works as a marketer for a US IT multinational but he has not held a permanent job for years. Several years ago, he switched from being a professional holding a permanent job to become a contract worker. He wanted to spend more time with his working wife and three children.  

Jaclyn too left a regular job as a medical practitioner to become a contract locum. She felt it was more lucrative as her earnings were about 30% higher than what she used to get.  

Yet another I know made the switch – to have more time to travel and pursue other cultural interests. Others have considered the switch at the crossroads of their career and personal lives, and want to make a sea change on the journey towards a more balanced ‘next phase’ of life. 

Compared with contract jobs, permanent jobs are generally considered as more stable, bringing in a regular income stream and potential career advancement prospects. 

Over the past decade, however, the concept of the ‘iron rice-bowl’ is getting more and more elusive. Increasingly, the Singapore workforce has become more mobile and, with the influx of foreign workers, more cosmopolitan than ever before.  

On the macro scale, the Singapore economy continues to thrive on international business. Therefore, we would inevitably be affected by regional and global dynamics. In a more micro context, companies would need to re-focus and adapt to these environmental and business winds of change in order to stay profitable. 

For some companies, it makes sense for them to supplement their permanent core staff with contract staff. For some workers, the permanent job may be harder to hold on to than before as their companies strive to stay profitable and reduce overheads. In these instances, the contract position may be offer a viable alternative – whether temporarily or for the long term.  

So, if your interest in being a contract worker is piqued, what are the considerations to get you started? 

For workers who are embarking on contract employment, it is imperative that you negotiate your fees and contract terms definitively. 

Negotiate the tenure. Is it part-time or full-time? Would the term be for six months, one year or 2 years? How would the contract fees be determined e.g. based on a fixed monthly payout or based on agreed number of hours worked or project milestones achieved? 

CPF contributions, medical and annual leave, out-of-pocket expenses (eg. transport allowances, phone bills, travel per diem expenses, etc.) are usually optional, and will need to be negotiated before the start of the work-term. 

Contracts usually carry no bonuses or stock options entitlements. Performance bonuses are generally not included and are usually given, if at all, on a non-guaranteed discretionary basis. 

Just like a regular job, contracts can be terminated by either party (yourself or your employer/client) given a notice period. Usually, the notice period Is one month, or a reasonable sufficient time period for the handover or the completion of committed projects. 

Wherever you are at right now, it is always beneficial to sharpen your core skills, upgrade to new secondary skills that you want to grow into, highlight your unique core strength at your work environment to stand out. Importantly, continually enlarge or re-connect with your social and business network, within and outside your place of employment. This is so that you might uncover opportunities where you might find contract work and pave the way for a sustainable gainful employment as a contract worker!