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Understanding the realities of contract work
Contract work arrangements are growing fast, offering flexibility and exciting opportunities for people who want more control over their careers. Whether it’s freelancing, gig work, or short-term projects, this way of working allows you to explore different roles, work with multiple clients, and even create a schedule that fits your life. But despite its popularity, contract work is often misunderstood—mostly because of myths and misconceptions around this work arrangement.
In this blog, we’ll break down some common myths about contract work and look at the real challenges workers face. While it’s flexible and rewarding, contract work also has its ups and downs—like staying relevant in a competitive market, dealing with financial uncertainty, and finding the right balance between work and life.
What are some common myths about contract work?
Contract work is often romanticised as a lifestyle of freedom and limitless opportunities, but this isn’t always the case. Common myths include the idea that contractors can work whenever and however they want or that contract work is an “easier” alternative to traditional employment. In reality, contractors often work long hours, juggle multiple deadlines, and face the pressure of continuously securing new clients or projects.
The myths vs. realities of contract work
The things people say about contract work and the reality:
Myth 1: Contract employment is not a choice
Contract or gig workers are often asked why they chose to work in the gig economy. Was it because of job loss, a falling out with a boss, or trouble finding a regular job? While these situations can sometimes lead people to try contract work, the truth is that many choose this path as a strategic and proactive career move.
Being a successful contractor takes careful planning, strong organisational skills, and lots of self-discipline. Many people prefer this type of work because it offers flexibility, variety, and the chance to shape their careers on their own terms—not because it’s a temporary fix.
Are contractors less committed to their jobs than permanent employees?
The myth that this employment choice is a stopgap until something more permanent comes along is far from true. Contractors often face unique challenges, such as managing unpredictable income and proving their value to clients, which makes them highly adaptable and hardworking. This path is for those who are willing to put in the effort and deliver high-quality results to meet their clients’ needs.
Myth 2: Most contractors are creatives
When people think of contractors, they often picture freelance writers, graphic designers, or other creative professionals. But contracting spans a much broader range of industries. In reality, contractors play vital roles in fields like technology, healthcare, engineering, education, and more.
Companies are increasingly turning to contractors for specialised roles that require unique skills or expertise. For example, tech companies often hire contractors to work on specific software development projects, while hospitals hire contract nurses and medical professionals to handle staffing shortages or specialised care needs.
What types of industries commonly hire contract workers?
Contractors are in demand across various sectors, including IT, healthcare, finance, construction, and education. In Australia, for example, job roles like Software Developer, Data Engineer, and Cybersecurity Analyst are among the top in-demand contract jobs.
In short, the idea that contractors are mostly creatives is a myth. Contract work is a diverse and dynamic field, offering opportunities for skilled professionals across nearly every industry.
Myth 3: Contractors can focus on their strengths only
Many believe that contractors can focus solely on the work they excel at, but the reality is far more complex. As a contractor, you must know what’s outside of your specific role to stand out in the stiff competition.
On top of that, you need to juggle multiple responsibilities, including service delivery, administrative tasks like invoicing, managing taxes, project management, and more.
There is no ‘single focus’ in contract work. The upside? These responsibilities also bring a multitude of benefits. Contractors gain financial control, build independence, and develop a diverse skill set, including time management, negotiation, and financial literacy.
Can contract workers gain new skills through their assignments?
Yes, contract workers can definitely gain new skills through their assignments. One of the biggest perks of contract work is the variety of experiences it provides. Contractors often take on projects across different industries, companies, and roles. This allows them to learn new tools, technologies, and methods, helping them grow their expertise and stay competitive.
For example, CXC’s Global Contingent Workforce Experience survey highlights this benefit. In Australia, 51.42% of contractors said that the skills they gained through contract work were useful not only for their current clients but also for future opportunities. Similarly, in Asia, 39.62% of respondents shared that their skills were highly transferable, making them valuable across multiple client relationships.
Myth 4: Contracting guarantees work-life balance
While the flexibility of contracting allows workers to set their own hours, it doesn’t automatically mean achieving a perfect work-life balance. The working hours of a successful contractor vary: they can be long, or they can be longer; they can start and end whenever they like.
However, when you start out as a contingent worker, just like running any business, you must put in hours of legwork into getting yourself up and running. Getting the balancing act right is a difficult task; it requires strategic planning. Setting boundaries, managing schedules effectively, and seeking support from tools or platforms can help them maintain balance. Although it’s possible to create a more balanced lifestyle, it requires conscious effort and discipline.
Myth 5: Contractors earn more and work less
Which contractor hasn’t heard, “But you work for yourself! Of course, you can come to the party tonight, the holiday in three days’ time, or the South Pole for Christmas!”.
The idea that contractors earn more while working less is misleading. Successful contractors often juggle multiple projects, meet high client expectations, and deliver exceptional results to maintain their reputation. In many cases, they work longer hours than salaried employees, especially when dealing with unpredictable workloads.
Moreover, contractors don’t typically have the luxury of paid time off. Time off is often limited to when projects are completed or during slower periods, which can make balancing rest and income a challenge. Despite the hard work, contractors appreciate the freedom and earning potential their roles provide, making the effort worthwhile.
Myth 6: Contracting is risky and lacks stability
Contracting is often thought of as risky because it doesn’t offer the same job security as traditional employment, but this view is changing. Fortunately, there are many tools and support systems available today that make contracting a more stable career option. Contractors can use platforms to network and find jobs, such as Out of Office, and other tech tools to manage their tasks easily.
Planning ahead is key to reducing risks. By working with multiple clients, saving money during busy periods, and using technology to stay organised, contractors can create a steady flow of work and income.
Is it risky for companies to hire independent contractors?
Hiring independent contractors can involve some risks for companies, but these are easily managed with proper planning. One common concern is the risk of worker misclassification. If a company mistakenly classifies an employee as a contractor, it could face legal and financial penalties. To avoid this, it’s important for companies to ensure their work arrangements follow all relevant labour laws and regulations.
One way to minimise this risk is to partner with a reliable workforce solutions provider, such as CXC. With their expertise and experience in managing independent contractors, CXC can help companies navigate compliance requirements and manage their contractor workforce more effectively. This way, you can focus on your business goals while reducing potential risks.
Benefits and opportunities in contract work
Contract work offers many advantages for professionals looking for flexibility and growth. One of the biggest benefits is the ability to design your own schedule, giving you more control over your work-life balance. Contractors also gain exposure to a wide range of projects and industries, which can significantly expand their skills and experience.
Another advantage is that contract work often provides opportunities to learn and grow. Many assignments require contractors to use new tools or adapt to different workflows, helping them build valuable skills. For example, a contractor in the tech industry might learn new programming languages or software through their assignments. These experiences can serve as stepping stones for career advancement, allowing contractors to develop their expertise and enhance their resumes.
Redefining perceptions of contract work
The realities of contract work often differ from the myths surrounding it. While some may view it as a temporary or uncertain career path, contract work can be a strategic and rewarding choice when approached with proper planning and a clear understanding of its demands. Contractors can build a thriving and fulfilling career as long as they embrace learning opportunities, the flexibility, and diverse experiences.
If you’re considering contract work, take the time to explore tech tools and systems, invest in your skills, and plan strategically. With realistic expectations and a proactive mindset, contracting can open doors to personal and professional growth more than what you have imagined.
Busting the Myth: Contractors are on their own
Many assume contractors are left to handle everything on their own—from managing taxes and paperwork to ensuring compliance. The truth is, with the right support, contracting can be a smooth and rewarding experience.
That’s where CXC comes in. As experts in the contingent workforce space, we’ve spent over 30 years helping contractors thrive. From the moment you begin your journey with us, we provide the tools and necessary human support you need to manage the administrative side of contracting. Whether it’s handling taxes, paperwork, or compliance, we take care of the details so you can focus on what you do best—your work.
Partnering with CXC means you’re never alone in your contracting journey. With our expertise and resources by your side, you can navigate the challenges of contracting confidently and efficiently. Reach out to us today to discover how we can support your success.
