3 Ways Tech Contractors Make More Money
05/26/16 by HQ
When searching for a job, you'll see several common alternatives for what you're hired as: full-time, contract, or contract-to-hire. There are many opportunities within contract or contract-to-hire roles that many people overlook. What makes a contract role different from a full hire position? One of the biggest benefits of a contract position is also the largest decision maker for many job seekers. Money.
Contractors get paid more per hour
The base hourly rate for tech contractors is much higher, ringing in at $70.26 per hour according to Dice's 2016 Tech Salary Survey. In comparison, the same report shows the average technology salary at $96,370, which is $46.33 per hour for a 40-hour work week - not counting the overtime you might have worked.
While this doesn't apply across all levels of experience or industries, in general contract employees have a higher dollar-per-hour range compared to salaried employees. In theory, this is to cover the benefits that a company doesn't offer a contract employee, but when you are placed through a company like Jobspring, many of these benefits are included, such as health insurance, paid time off, and even a 401(k).
You receive compensation for the hours you work: all of them
When you accept a full-time job, you have to accept that as a salaried employee, you are just that: on a salary. You get paid a certain amount each year, no matter how many hours you work as a part of that salary agreement. As a contractor, being employed for a 40-hour work week means actually working those exact hours, because you get paid by the hour. Frequently, salaried employees get called on to work on weekends, late nights, and early mornings. The difference for a contractor is that you'll get paid for the extra miles you put in on the job.
Extra hours = overtime pay
Thanks to a compliance law changing for 2016, not only do you get paid for every hour, you can get overtime pay (1.5 times your normal rate) for anything past your set work week maximum. So the more hours you work, the more money you can earn. With projects that stretch deep into the night, your salaried coworkers are just as dedicated as you are, they're just not getting compensated for it.
Think about this: When working with a team to launch a new product, how many hours do you put in? Recruiter Phil breaks it down for job hunters below.