What is the difference between contracting, consulting, and direct employment?
What is contract-to-direct?
Why should I contract?
If I accept a contract-to-direct assignment, is direct employment guaranteed?
What is my obligation if I accept a contract-to-direct assignment?
What types of employers use contractors?
As a contractor, am I eligible for benefits?
How am I compensated? How often am I paid?
Can I contract as a new graduate?
What is the difference between contracting, consulting, and direct employment?
- Triad provides contract professionals to our clients. As a contractor, you are a Triad employee. Triad pays your wages, withholds your taxes, and provides your benefits (complete coverage for unemployment and workers’ compensation, 401(k), access to health insurance, etc.). Triad also pays the employer contribution to your FICA tax, and provides you with a W-4 at the end of each year.
- Consultants are typically self-employed. They file and pay taxes as independent business operators, and should obtain both workers compensation and professional liability insurance.
- Direct employees work exclusively for the client. They are usually eligible for full benefits, including paid sick and vacation time, and paid holidays.
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What is contract-to-direct?
- Contract-to-direct is becoming a very popular way for employers to hire direct employees. Contract-to-direct arrangements begin with the candidate as a contractor at the client site. After some period of time, there may be an offer of direct employment with the client.
Employers and candidates like this arrangement as it allows both parties to try each other out in an on-the-job setting. You can only gain a limited amount of knowledge from an interview; however, you can really get a sense for whether you would be happy with an employer after first working there as a contractor.
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Why should I contract?
- Contracting offers many features that may appeal to you. As a contractor, you have complete autonomy with respect to the direction of your career. You select which job opportunities you would like to pursue, how much time off you would like between jobs, etc. Contracting offers considerable flexibility not found with direct employment.
- Some of the specific benefits of contract work include:
- Higher Income. Hourly compensation at a pay rate typically higher than direct employment would offer for the same work.
- Diversity. You will have the opportunity to work in a variety of industries on many different types of projects.
- Skill Development. Working on a variety of jobs, you will rapidly enhance your technical skills while working with the latest technologies. If you are a new graduate, contracting is a great way to gain valuable experience.
- Long Vacations. As you decide which jobs to accept, you choose the timing and duration of your vacations.
- Convenience. Your job search is conducted by an experienced recruiter: You simply decide which jobs to accept. Your recruiter will submit your resume, schedule interviews, and negotiate labor rates for you.
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If I accept a contract-to-direct assignment, is direct employment guaranteed?
No. Although the client has the intention of converting you to a direct employee if the contract period goes well, this cannot be guaranteed. There are several reasons why a contract-to-direct assignment could be terminated without an offer of direct employment. These include the loss of a key project, the loss of funding, an unexpected downturn in the economy, etc. That stated, in our experience the vast majority of contract-to-direct assignments do lead to direct positions.
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What is my obligation if I accept a contract-to-direct assignment.
You are not contractually bound to work at the client facility for any specific period of time. After contracting for a while, you many decide that the company isn’t one for which you would like to work directly.
However, we do ask that you only enter into a contract-to-direct arrangement if the possibility of becoming a direct employee with the client appeals to you. We ask that you not accept a contract-to-direct assignment if, while on contract, you intend to seek a direct assignment with another company.
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What types of employers use contractors?
In today’s fast-paced global market, most companies needing skilled technical professionals can benefit from contract services. Typically, these are companies requiring experienced personnel to supplement their permanent work force on short notice either at peak times or for special expertise. Additionally, many employers are viewing contract-to-direct as a means to hire permanent employees. We currently have contractors working with clients in such fields as aerospace, A&E, electronics, medical device design and manufacturing, power, and optics, to name a few.
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As a contractor, am I eligible for benefits?
Yes. Triad offers comprehensive health insurance, dental insurance and a 401(k) plan. Please see the Benefits section of this web site for information on the entire range of benefits that Triad offers.
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How am I compensated? How often am I paid?
Triad’s contractors are paid an hourly rate. Prior to being considered for a job, you and your recruiter will agree on the rate you will be paid.
Contractors are paid according to hours worked. Holidays and time off are not paid. In many instances, contractors are eligible for overtime (hours worked in excess of 40 in one week). Your recruiter can address whether overtime is an expected part of the job you are considering.
All Triad employees are paid weekly. Every Thursday, employees are paid for the previous week. As a convenience, you may elect to have your pay check directly deposited into your bank account. Please see the Benefits section of this web site for more information.
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Can I contract as a new graduate?
Most of our clients prefer contractors who have professional experience; however, some companies will consider new graduates with relevant co-op experience. The best course of action in determining your options is to speak with your recruiter about your specific experience and career goals.
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