The contract market within the engineering market has been notoriously lucrative in former years. Contractors, while forfeiting their right to benefits like company cars, pensions and healthcare, earned considerably higher rates than their permanent counterparts and the flexibility from the labour market that they facilitated was welcomed by hiring managers.

Contractors were appointed for a project until their skills were no longer required and released with a typical notice period of just a week – when the contractor could look towards their next role or take the family away over the school summer holidays!

Arguably the most notable trend during the recession within the engineering industry has been a preference among hiring companies for permanent workers. Anecdotal evidence suggests that this is so that tightened budgets can be more accurately forecast and hiring spend more easily managed.

What this has meant is that contractors who have been used to commanding high rates and either extending a contract with an existing company – sometimes for years at a time, or securing a new one with ease, have found it increasingly difficult to find the kind of roles that they would like.

NES has been working closely with many contractors to promote the benefits of permanent work. What has to be stressed is that permanent employers take some convincing about an applicant’s suitability when considering a former contractor that they’re serious about going perm, so it has to be something that you’re genuinely considering as a career move, not just a stop gap until the contract market picks up.

While rates are an obvious attraction for contractors, it can be worthwhile considering the benefits of switching to permanent work in the right circumstances. Here are some plusses:

  • Training & development opportunities are better for permanent employees.
  • Additional benefits – healthcare, pensions & company cars – can compensate for lower rates
  • Flexibility can open up more opportunities and reduce time spent out of work
  • Permanent workers are often presented with more promotional opportunities and therefore career progression can be accelerated

Flexibility is the key. With the effects of the recession still highly apparent worldwide, perhaps the question about your flexibility is “Can you afford not to be?”