Why a million Aussies are contractors

The new world of work is not a new concept but it is continuing to shape the way organisations respond to the evolving environment.  Technology advancements, global capabilities, diverse demographics, economic changes, social media and its impacts are some of the areas that are contributing to the shift.  The workforce in Australia and around the world has progressed – it’s contemporary, exciting and lends itself well to the contracting workforce.
Not only are we experiencing these external factors but our personal values and attitudes to work and life in general have changed.  Being an independent contractor can offer an attractive lifestyle – a lifestyle that approximately one million Australians are enjoying.
So, what’s the appeal?
Be your own boss
Many people comment that they would love the freedom to be their own boss.  However, many people think contractors get up at 10am, work in their pyjamas and have the TV playing in the background.  Sure that sounds great; however, it takes a driven person to make this lifestyle work for the long term and prosper from it.
Most contractors or self-employed business owners are looking to push themselves into the most challenging projects, take responsibility for their own development and only do things that are actually worth their valuable time – they have their own vision and have planned their mission in detail.
Love your job – love your life
Being an independent contractor is just that – independent.  Everyone has their own views on what work life balance should look like – for me, it would be 6 months on and 6 months off.  For my father, it would be 12 months on and maybe a few days off over Christmas.  Running your own business means you decide what’s right for you.
Contractors determine which projects they pursue and have the freedom to choose where and how they provide their services. For instance, you may decide to look for part-time contracts or choose to take time off between contracts. The ABS reported that female contractors worked fewer hours per week (27 hours) compared to female employees and other business operators (33 hours).
Financial kick start
In many cases, highly skilled contracting professionals will indeed receive higher earnings than employees. In the ICT sector, a recent study showed the Aussie average hourly rate in August 2015 for contract placements was $95 compared to $61.21 for permanent placements. That’s a difference of $33.79 per hour, $1284.02 over a 38-hour week and a whopping $66,769.04 over a full year.
Contractors are also paid in gross, meaning they have an improved cash flow.  This has major benefits for anyone that is financially intelligent. For anyone who is not, using a qualified tax and financial advisor can help you to best plan for your future – ultimately giving you the best chance at the lifestyle you are dreaming of.
Try before you buy
Working as a contractor can be a great way to get a feel for an industry or a specific company you’ve always admired. While some jobs are industry-specific, many professions can cover a range of industries. For example, you may be an IT consultant within the Healthcare sector, or for a mining company.
By taking a contract in any number of industries and or companies first, you get a good opportunity to decide what’s right for you and furthermore, decide if you’d ‘throw away’ the contracting lifestyle for a permanent role at your latest gig.
No longer bored being bored
They say that variety is the spice of life, so maybe that’s just what we need to feel completely satisfied with the work we deliver.
Contractors often work on many diverse projects, sometimes simultaneously.  Maintaining a level of variety in your working life can keep you motivated and creative so that you continue to strive for the best outcomes professionally.
However, variety of work is not the only thing that changes project to project.  Contractors often have a huge network of professional connections, friends and experiences.  It is not uncommon for contractors to travel abroad to fulfil a contract or consider permanently relocating – the opportunities are endless.
The typical contractor
Independent contractors come from all walks of life, but they do share many strong characteristics; independence, ambition, empowerment, resilience, entrepreneurial, highly skilled and the ability to self-govern. If this sounds like you, it’s time to start your life as a contractor and reap the rewards.