Contract roles: should you give them the time of day?

Once you qualify, there can be many opportunities around you, one of which is a contract role. Brian O’Connor breaks down the pluses and minuses of a contract role to help you decide if it is for you

For many newly qualified accountants, contract roles offer a compelling bridge between two states — providing immediate opportunities to gain experience, build confidence and explore different industries without locking into a long‑term commitment.

In recent years, shifts in market conditions have led to a noticeable rise in contract positions, particularly at the recently qualified level, as employers look for flexibility while still securing high‑calibre talent.

For those starting out, contract roles can be more than a stopgap. They often serve to accelerate learning, deepen technical skills and open doors further down the line.
As you consider options post-qualification, understanding what contract roles really offer can help you make informed, confident decisions about the next steps in your career.

Permanent v contract: key differences

Sometimes, the only difference between a contract and a permanent role is that a contract is initially for a defined period of time. Quite often, the duties and responsibilities are the same as those of a permanent role, but for a defined period of time. If the contract arises from a project or a backlog of work, the nature of responsibilities will usually differ.

With permanent roles, you’re likely to be entitled to annual leave and some benefits, whereas with a contract role, you are not always entitled to benefits, particularly if you’re on a temporary contract.

Why do contracts come up?

Contracts can come up for a number of different reasons, but they are usually because they are maternity covers, projects with a finite timeline, headcount restrictions or that’s the way companies do their hiring initially (e.g. many of the multinationals hire people initially on contracts as they know a percentage of recently qualified accountants will leave after a year or two to explore new opportunities).

Different types of contracts

There are two main kinds of contracts:

• Fixed-term contracts – you will officially be an employee of the company for a fixed period of time. You will be entitled to the same amount of annual leave as a permanent employee (pro-rata for the period of your contract), and sometimes there may be other benefits on offer.
• Temporary contracts – you will be paid by, and will technically be an employee of, the recruitment agency, but you will be working for the company.

While in a temporary contract, you may be paid a daily rate or an hourly rate, you’ll have to accrue annual leave, and you may not be paid for sick days.
Contracts will vary in length; in most cases, they can range from a few weeks to two years. On occasion, they may be longer than two years.

Advantages of contracts

At the end of a contract, you will likely have gained experience in an area that you don’t already have, and therefore you will likely have a wider pool of options available to you (e.g. if you qualified in practice and took on a nine month contract financial accountant position, you will have relevant and practical post-qualified experience when coming to market again).

Contracts can allow a person the opportunity to experience industry and see if they like it, without being tied into a permanent role.

There is often a chance that your contract will be extended or made permanent, so it can be a good way to get your foot in the door.

Finally, there can be fewer barriers to entry with a contract role, i.e. the client may be a little more flexible with their requirements than if they were hiring on a permanent basis.

Contract roles and your CV

If you have taken on a contract role for strategic reasons (e.g. to get experience in an area you don’t already have), then there is no negative association with a contract role.

In fact, companies can often respect someone who has taken on a contract role for strategic reasons, as it shows the person is career-focused, proactive and willing to consider all options to further their career.

However, if someone has worked in multiple contract roles, it can be a concern for future employers when hiring on a permanent basis, as they may worry about someone leaving after a short period.

Brian O’Connor is a Team Lead at Barden