What is a Contract Worker?

A contract worker is a worker who works for a company for a particular contract or a fixed-term job. Contract workers are also called independent contractors. They are employees who are given the 1099 tax form by the start of the year. They have the responsibility to pay their own taxes. To be a contractual worker has its pros and cons. Being a contract worker may be a good resort because you can choose your projects and you can work on your own schedule. It can be easy to find contract jobs. Though there can be times that you will send a freelance job proposal for you to be hired. A proposal can be good or bad for contract workers. Good because they will have the chance to get the best clients. They can negotiate their price and be paid in the best way. But it can make them exert a lot of effort in making proposals. Another thing that is not so good with being a contract worker is being unstable of having projects. You will just work for a particular time. After the project is finished, you will not have a job anymore. But if you will be good at getting projects, this will not be a problem. A contract worker salary may be good if contract workers can manage to get multiple projects for themselves at a time. They have the freedom to have as many work as they want if it is possible. They do not have to sign a non-disclosure agreement that will force them to work only for their company. They can have many clients if they will only have a good negotiation strategic plan. They just only need to be responsible for paying their contract worker taxes. Being a contract worker can be rewarding if you are a person who wants to have your freedom on everything. You do not have to be committed to any full-time job that will require many things on your side. Contractual workers can be happy in their employment, just as long as they have a good agreement with their employer.

Benefits of a Being a Contract Worker

Being a casual contract worker can be beneficial. You can get many things that you will not get if you will be a full-time employee. If you will just be aware of the contract worker definition and will know what is a federal contract worker, you will learn that it has many benefits. You will know the contract worker rights that can make you to choose to be a contract worker. Read the following and learn some of the benefits of being a contract worker:

Building Your Resume: If it will take you some time to get a full-time job, then you can have the resort of being a contract worker. You can make the most out of your time. The time that you are going to wait will be turned into good things like having a salary and building your resume. Your contract work is an additional asset that you can put in your resume. It can make you learn new skills that you can add to your resume or CV (Curriculum Vitae). You can also build a new portfolio that you can use for your future job applications. Having contractual work can improve your resume and will give you a great chance to be accepted in future jobs.Easier Interview: We always become so nervous at the time of interviews. We have jitters because we do not know how we can pass it. But if you will choose contract work, you will give yourself a chance to make everything easier for you. Interviews with contract jobs are easier than interviews for permanent work. This only means that you will have a greater chance of having a job. You will also save yourself from being discouraged if you will be kept on being rejected in interviews. Because the interview is easier, you know that you can nail it. It will be easier for you to get a job for yourself.Building a Network: Shifting from a contract job to another contract job can make you know many clients. You can have a wide professional network. Being a contractual worker can mean that you will not lose work if your past clients can always hire you again. They can also provide connections that can give you a new job. It is always good to meet new people. You may never know that they can help you in the future. It is also good to have a wide network of acquaintances so that you can have many friends. This can develop your personality and give you a more vibrant life.No Long-Term Commitment: You can have absolute freedom being a contract worker. You do not have to commit to any company. You do not need to make a long-term commitment to any employer. If you work in a company and the culture does not fit with you, you are free to go after your contract. You do not have to force yourself to work in a company where you are not happy. A full-time employee can do that just for the sake of having permanent work. But if you will work as a contract worker, you are free to choose the place where you will work. You will only work for a short time and it will not give much hassle to you if you will find out that you are not happy with your employer or with the job. You do not have to make a long-term commitment to anyone.Chance to Work Full-Time: Contract work can be an open door to a full-time job. If a company will hire you to become a contractual worker, it can extend your contract and convert you into a full-time employee in the future. It will be a good opportunity for you. Being a contractual worker is a chance for you to nail a full-time job within the company. If you are eager to find a job, there is no reason for you not to take contract work for the moment. Your job can be converted into a full-time job if you can prove yourself to be hardworking and efficient with the job. So, after all, a contract job may not be bad. It can open doors to opportunities that you have been waiting for.Having Your Career Passion: Being a contract worker can make you choose the job that you will take. You can choose careers that you have passion for. You can even have different jobs where you can find your preferences. Because you are free to work in different employers, if you want to work as an illustrator and writer at the same time, it can be possible. You will not be forced to work for a job that you do not love. You are free to choose a job where you can be passionate. You can easily find happiness and contentment. You are free to make the move for your career to make it the best that you can have.Higher Compensation: The contract worker benefits are not so much. Sometimes, you will just earn your salary. But it can be a positive thing because contract workers’ compensation can be high. They are given a higher salary because they do not have benefits. If you are a person who does not care much about benefits, then this can be the right job for you. You can have the high compensation that you desire.

Tips on Contract Worker

If you are a staff in contract worker management, you may need some tips in managing the contract worker. Or if you are a person who wants to be a contract worker, you may want to have strategies that you can use in working. Consider the following tips:

Great Resume: To land a contract job, you must do what you are doing in all your jobs application. You must submit the best resume. A great resume can surely help you to get the job that you desire. Employers look mainly at the resume. You have to build a resume that will make them have an initial approval of you. Polish your resume so that it can convince employers to give you a chance and hire you.Know the Talent Market: You should have the right understanding of the job market. Know the in-demand jobs. You will have a greater chance to be hired and get contract work with these jobs. Research the talent market so that you will know what things will work. If you find a job that many companies look for applicants for, then you can apply to that job. Just be sure that you have the necessary skills for the job. If you want, you can have workshops first so that you will be equipped for the job.Be Good in Negotiation: An independent contractor needs to have skills in negotiation. It is how you are going to get your projects. You need to convince the clients that you will be the best for the job. If you will have the best strategic plan in negotiation, you can even have as many clients as you want. You can work on multiple projects at once. Good negotiation skills can make you also have higher pay. You can talk to the clients to give you the price that you will request. It can give you the best jobs that you can ever imagine.Give Orientation: If you are going to hire contract workers, you should know that you should give them orientation. Even if they will work fixed term in your company, they should learn about your company and know your culture and core values. You should also make sure that they will be informed of everything about the job. Some things should be clear to them like the goals for work and the tasks that they should do. It can also give them a warm welcome to the company if you will facilitate an orientation.Be Clear with Work Goals: A contract employee is not a full-time worker that has always had access to your office. To work well with them, you must be clear with the goals in their work. Be clear about their tasks. Remind them of the timelines and the deliverables that they will give. Be clear with the scope of work so that they can give what is required. It is better to be clear to them first hand so that they will know what to do to keep their work perfect.Good Communication: Usually, contract workers do not work in the office. It only means that you have to keep a line of communication with them. You should do that to monitor that they are doing the best to their job. You should have regular meetings with them. You can have a phone call with them once a week so that you can ask them about their work. If they are working on a harder project, you must communicate with them more often.

How to Be a Contract Worker

Have you entered a contract work agreement? Or you are just going to have a contract for a casual worker? If you do not know how to become a contract worker, we can provide some steps for you that you can follow. They are the following:

  • Step 1: Set Expectations

    To work as a contract worker, you first have to set your expectations. How much salary do you need? How long will you want to work? On what jobs do you want to engage? You have to set your goals so that you will know what kind of work you will accept. Know your objectives. This will direct you to the right job that you need.

  • Step 2: Scope of Work

    Then, you should know the service that you can give. This will bring you to the job that you will choose. Give a scope of work that you can provide. This is important in any independent contractor role. It is needed to be discussed in the proposal. The clients have to know what they can expect from you.

  • Step 3: Start the Negotiation

    Communication is what can make you get the job that you need, It is the key to how you make the clients give you projects. Build a good relationship with clients. Be good at communicating with them. You need to have the right negotiation skills so that you can convince the clients that you can make good work for them.

  • Step 4: Agree on a Compensation

    You should get a return from your labor. Your compensation is important. You need to negotiate to get good compensation for yourself. Cite a rate that will be enough for you to compensate for your service. You and the employer have to agree on a fair rate. This is important before you will make an agreement.

  • Step 5: Sign the Contract

    If the terms have been made, you and the employer can proceed to the contract. Whatever you have agreed upon should be written in the contract. When everything is done, you can sign the contract. Then, you can start with the onboarding process. You will have a contract job that can last for months and can give you good compensation.


How Much is the Salary of a Contract Worker?

The average salary of a contract worker in the USA is $62,400 per annum. An entry-level independent contractor can get $39,000 per annum. If you are an experienced worker, you can have as much as $136,500 per annum. This proves that being a contract worker is a good job.

Is Being a Contract Worker Better Than Being a Full-Time Employee?

It is up to an individual to choose between contract work and a full-time job. Both have pros and cons. It depends upon your preferences. If you want permanent work, you must opt for a full-time job. But if you want freedom in your work, then be a contractor worker.

Many opt to be contract workers because they want to have autonomy in their job. They can choose the works that they will have and have their own schedule. There are certain reasons why people choose to be contract workers. But whatever it is, it is because being a contract worker suits them better. Do you want a contract worker template? This post has 33+ SAMPLE Contract Worker in PDF. You can choose a template that might suit your needs. Download now!