Companies usually look for temporary labor for a certain task where they need to focus, and deadline, or a certain expertise. Often, they have let a project slip and suddenly need it to be executed. Using an existing employee to split up duties would not get the job done in the time they need. More so, that employee may not have the expertise in scheduling and/or the subject at hand.
Hiring someone for 3, 6, 9 months for a task is more efficient for the company and more beneficial for you. Contractor, temporary, and vendor jobs pay more for a few reasons
- They can attract an expert in the area they need
- They can eliminate costs for amenities such as health care premiums
- They can eliminate the cost of a desk, phone, computer
- They often have more than one expert on the same task (consulting firm)
The benefits for can be equally attractive
- You get the entire amount for the job, not a paycheck with multiple deductions
- You can learn much more at a faster pace working with 3-6 companies in 2 years instead of just one or two
- You may be able to lower you tax rate based on deductions for operating a business e.g. travel, equipment, etc.
- You have more autonomy as a vendor and sometimes more respect as someone who is billing a company than as an employee who is receiving a paycheck
You will need to investigate the right situation for you and your circumstances.
Having your own one person firm can be exciting and adventurous but you must investigate all requirements, hear others’ stories, learn the rules, and other tasks so you can have the greatest success!