Wage growth report highlights why contracting is king

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As a worker, you’ll want to receive a wage that truly reflects the skill and expertise you possess and the sheer effort you put in on a daily basis.

Unfortunately, it appears that many permanent employees are being held back when it comes to salary growth – allowing contractors to storm ahead. Indeed, a recent report by the Office for National Statistics (ONS) revealed that wages dropped 2.4% in the three months to June.

Contractors, meanwhile, are seeing their earning power skyrocket in recent months, with IT specialists particularly having cause to celebrate. According to IT recruiter Computer People, assignment rates for application analysts are now 27% higher than they were last year, while senior managers enjoyed a 12% rise.

The contrasting pay results show once again that contracting is a perfect way for UK professionals to make the most of their careers.  Not only does it pay more than permanent employment, it also allows individuals to take greater control of their own destiny.

What’s more, contractors can schedule their work around their family commitments. Indeed, one of our clients recently told us that the ability to take time off during his children’s early years was one of the greatest things contracting has allowed him to do.

With benefits such as these, it’s hardly surprising that contracting has enjoyed a surge in popularity in recent years. But in order for this to continue, industry bodies such as the association for Independent Professionals and the Self-Employed (IPSE) warn that more government support is needed.

IPSE’s chief executive, Chris Bryce, said: “Considering a large proportion of jobs created in the past five years came from the self-employed community, the government will be relying on this group to meet its ambition of an extra two million people in the labour market by the end of Parliament.

“The government must provide better support to the self-employed if it wants to continue growing a flexible and healthy economy.”

At ClearSky, we also believe that additional support is vital to encourage more people to take up the contracting lifestyle. Our managing director, Derek Kelly, has previously called for HMRC to avoid “discouraging talent individuals from making the leap by creating the impression that the taxman is out to get them.”

With study after study finding that UK professionals would be better off as contractors, it’s essential that they have a substantial support network to allow them to get on and grow.

Have your say

Are you a contractor? Would you encourage more permanent employees to make the leap? What do you think the government could do to help the self-employed? Join in the discussion on Twitter, or leave a comment below.