CONTRACTING
Contracting in NZ
Why go contracting?
- Thinking of branching out on your own but not sure where to start?
- Between employment opportunities and not ready to commit to a full-time position?
- Enjoy working on a project basis?
- Wanting more flexibility?
Independent contractors are significant players in the job market - in particular, the technology industry. Our clients will come to us with a specific outcome or a one-off project they have in mind to be delivered, as post this, they won't require a permanent employee. They utilise our services because of our in-depth access to talent in the market and our ability to turn around highly qualified capability.
Being a contractor can be rewarding, but it certainly isn't for everyone. Here are some key things to consider before you branch out:
- Pros & Cons
- Setting up as a contractor
- Contracting via Recruit I.T.
- Contractor Rate Guide
The Pros and Cons of Contracting
PROS
- Flexibility: Being a contractor means you’re essentially your own boss and can enjoy excellent flexibility and tick off your bucket list between assignments.
- Broaden Your Experience: Contracting allows you the opportunity to broaden your experience across various projects, sectors, and situations. You can add more strings to your bow and increase your professional development in your industry of choice.
- Financially Rewarding: Contractors get paid a premium and have the opportunity to earn more than if you were to work in a permanent role.
- Networking: As a contractor, you are continually going into new environments and networking as you start engagements. It is a great way to meet new people, build your reputation and hear about new job opportunities.
- Constant Challenges: Contracting is excellent if you are someone who gets bored quickly and needs constant variety in projects and work environments.
Cons
- Reduced Security: Along with the contracts being typically 3 – 6 months, as a contractor, your job security is less than that of a permanent staff member. Usually contractors are the first to go within a restructure or where any cost-cutting measures are applied.
- Potentially Irregular Income: There is the risk that the gap between contracts could be weeks. You will need to budget for this.
- Limited Career Training: Without access to formal workplace training programmes, you will need to plan and cover the costs for any certifications and development you may want to do.
- Administration: Time and energy are required to keep on top of taxes, record keeping and the potential setup of your small business. One of our partners, HNRY, can provide an end-to-end service to assist with this work.
- Constantly Looking: As a contractor, you naturally want to ensure you have work lined up post your contract end date. Searching involves time and energy and is where having a good working relationship with a recruitment agency (and of course Recruit I.T.) has its benefits.
- No Annual Leave or Sick Leave: As a contractor, since you don´t have employment agreements in place - unlike permanent or full-time employees - if you aren’t working, you won’t get sick leave or holiday pay.
Contractor Frequently Asked Questions:
If you are after information on a particular skill set that isn’t outlined in our Salary Guides or Market Updates, please contact us directly.
Contracting via Recruit I.T.
Benefits of contracting with Recruit I.T.
- Recruit I.T. will act as your advocate with the customer.
- Our dedicated consultants are constantly looking for suitable opportunities for our contractors, as our goal is to ensure you have continuity of contract, whether this be with your existing contract, or our wider customer base.
- Receive payment earlier than going direct.
- Recruit I.T. are BTCI (Buyer Tax Created Invoice) approved by the Inland Revenue Department. This means we provide you with an invoice without you needing to create one.
- Discounted PI & PL Insurance.
- Cloud-based timesheets & payslips.
Our payment schedule
Recruit I.T. uses a cloud-based timesheet and payroll system that ensures all contractors are paid on time. All contractors are paid monthly and given a payment schedule detailing the timeframe for sending documents and payment dates.
If you miss your timesheet and invoice deadlines your payment may be delayed. If you think you may have trouble meeting the timeframe, please contact our finance team to discuss options.
PI & PL insurance offering
Our clients require our contractors to maintain their own insurance - both Public Liability and Professional Indemnity. Essentially this protects you legally and financially from any mistake or error you make while doing work, including any loss that your clients’ business might suffer as a result. When you are an employee of a company, you do not have this risk, as your organisation covers you under their professional indemnity insurance policy. For this reason, independent contractors purchase liability insurance to protect them from the risk of causing a significant loss to their client, which they either couldn’t or wouldn’t want to pay for out of their own pocket.
Contractor rate guide
As one of New Zealand’s leading agencies in the technology sector, we have access to a range of salary data, particularly around contractor rates in the current market. Please feel free to download your complimentary Recruit I.T. Salary Guide covering contractors’ market rates.
If you are after a particular skill set that isn’t outlined in our Salary Guide, please
If you would like to see what contracting opportunities are available, please check out
Alternatively, if you would like to speak to one of our consultants to understand the market and demand for contracting in your chosen skillset then check out