Dr. Michael Bisconti
BETTER OFF AS A PERMANENT EMPLOYEE
A consultant would be better off as a permanent employee for several reasons.
FRIENDSHIPS & ASSOCIATIONS
First, permanent employment allows you to build deeper, more fulfilling, and more lasting friendships and professional associations. Consultants move from company to company and miss out on these deeper relationships and associations.
SOPHISTICATION & EXCELLENCE
Second, consultant work does not allow one to develop their work to the highest level of sophistication and excellence. The work of consultants is generally continued by employees of the client.
INSURANCE, VACATION, HOLIDAYS, 401k PLANS, PENSIONS, PROFIT SHARING
Third, there is the fact that consultants are usually not provided with medical, dental, vision, disability, and life insurance, paid vacations, paid holidays, 401k plans, pension funds, and profit sharing by the consulting firms that employ them.
Fourth, consultants have extra stress to deal with. Clients believe that consultants must provide more than employees. This belief arises from what clients believe are big fees earned by consultants. ACTUALLY, MOST CONSULTANTS EARN NO MORE THAN EMPLOYEES. The reason is that part of the client’s fee goes to a consulting firm and neither the consulting firm (in most cases) nor the client (in all cases) has to pay for medical, dental, vision, disability, and life insurance, vacation, holidays, 401k plans, pensions, and profit sharing (as stated above).
WHY THEN BE A CONSULTANT
There are only two reasons to be a consultant:
1. You cannot find permanent employment.
2. You are in need of a large amount of cash in a short period of time and you, possibly, can meet this need through contract work. Of course, over the long haul, most consultants earn no more than permanent employees.
MORE TO BE SAID
There is more to be said. We will expand this article if the opportunity to do so presents itself.