Should you take up a contract role that pays more?

In this series, manpower reporter Tay Hong Yi offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career.

Q: I was offered a contract role with higher pay than my current permanent role. Should I take it up?

A: Companies often hire contract workers, even for highly skilled positions, to ensure they can respond to emergent needs and market conditions with flexibility and agility, says Ms Samantha Tan, human resources business partner at Seek Asia.

Seek Asia company operates the Jobstreet jobs portal.

“These contract roles allow them to respond swiftly to project-based needs, harness specialised skills for a specific duration for specific initiatives that they are trying to drive, and manage workforce costs more efficiently,” notes Ms Tan.

Mr Nilay Khandewal, managing director of recruitment firm Michael Page Singapore, says providing cover for essential but temporarily vacant roles, such as when someone goes on maternity or medical leave, is a primary driver for contract hiring.

Candidates may be drawn to contract roles due to the allure of higher pay, project diversity and the opportunity to build a robust portfolio, says Ms Tan.

“However, they must understand that contract roles do come with inherent uncertainties, including the short-term nature of the job, and the lack of job security and benefits typically associated with permanent positions,” she adds.

Still, Mr Khandewal says contract roles can sometimes lead to a step up the career ladder.

He has observed that some employers now offer even C-suite and departmental head roles on contract, providing opportunities for candidates to exercise leadership, deepen their skills and gain industry exposure. 

He says in his experience, some professionals are even willing to take a pay cut for the chance to work in a coveted company and role that provides the fulfilment and challenge they seek.

Ms Tan advises candidates to consider the broader picture, including their financial situation, what benefits they find relevant, and the demand for their skills in the job market to ensure that the search for their next job is not protracted.

Mr Khandewal suggests they should also consider the contract’s duration, the potential for conversion to a permanent position, and the role’s relevance to their career trajectory.

Non-permanent employment is admittedly viewed with scepticism in some cultures, and professionals may fear the stigma of instability associated with contract roles, he notes.

“Moreover, there’s a risk of misaligned expectations regarding the role’s permanence, which can lead to frustration and a sense of wasted time if the contract doesn’t lead to a permanent position.”

Still, he says employer attitudes towards contract roles have improved.

“With meaningful, value-added contract roles becoming more prevalent in sectors such as technology and digital marketing, hiring managers are beginning to view these experiences more favourably.”

Ms Tan says candidates with one or more contract roles under their belt should not worry about their job history being perceived as a sign of a weaker commitment than those who have worked only in permanent roles.

Such candidates can take heart in employers’ increasing emphasis on skills-based hiring, and focus on showcasing the skills they have acquired and value that they can bring to the table, she says.

Mr Khandewal says: “It’s essential to dispel any misconceptions by highlighting the enriching nature of the contract work undertaken.”

This includes detailing specific projects, their outcomes, the skills acquired, and how these are transferable to the new role, he adds.

“By showing how contract roles have broadened their experience and made them more versatile, candidates can turn what some might see as a liability into their strong selling point.”

Have a question? Send it to askst@sph.com.sg

This article was originally published in The Straits Times.