How Contract Jobs Differ from Gig Work?

First published: November 16, 2022 @ 6:00 pm

Gig workers have become a significant portion of the labor market. Gig work is a job where you get a short-term assignment with an employer and when it is finished, you go back to being unemployed.

The gig economy is not a recent phenomenon, it has been around since the beginning of capitalism. The idea of gig work is that it helps to overcome labor market inefficiencies.

How Gig Work Differs from Contract Jobs?

Gig workers are not employed by the company that they work for. Meanwhile, contract workers are employed by the company.

There is no employer-employee relationship in gig work, as you are self-employed and your employer is considered a partner instead. In fact, gig works are more similar to freelance jobs.

Gig workers do not have to show up to work every day or even every week, they just have to log in and perform their tasks. In contrast, contract workers need to show up almost daily and stay at their job until their time is up.

A gig worker has more control over their schedule. After all, it can be very hard for them to keep a regular schedule when they’re dealing with project basis tasks.

A contractor, however, needs to show up for his or her regular shift. They have to follow the company’s term contracts.

Gig Work vs Contract Work: The Advantages Each Type of Job

Advantages of Gig Work

1. Greater flexibility

Gig work gives workers more freedom. This is because they do not have to show up at a certain time and can be more flexible with their schedule.

In the gig economy, you are your own boss and can choose when and where you want to work.

Contract workers, on the other hand, need to report to their employers. After all, everything they do will reflect to their company’s reputation. Meanwhile, gig workers only need to prioritize the result of their work and their own reputation.

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2. More money

Compared to contract workers, gig workers receive more compensation. One gig work can pay you more than a month’s worth of wages for a regular worker. In fact, one gig worker can make up to three times the annual salary of a regular employee.

For people who can manage their time and money well, gig work can be a way to earn more in less time.

That’s why some people find it difficult to leave gig work for regular work.

For instance, an interpreter can make more money by being a freelancer than a full-time employee in a translating agency.

3. Less stress

Contract workers are required to work at the same location for a longer period and do not have as much freedom.

This is because they are at their job, and their employer can monitor their behavior.

Gig workers do not have this kind of control over their work. Most times, this is an advantage because it reduces stress.

Contract workers also need to be very responsible with the tasks that they are given and complete them according to company policy and regulations.

If a contractor cannot do his or her job well, they may get fired, even if they haven’t fulfilled their contract terms.

Advantages of Contract Jobs

1. Less hours

Many people like the flexibility of gig work, but would prefer that it does not take so much time out of their day. Gig work sometimes takes long hours, especially if they concern big events with complicated requirements.

Contract workers are required to be at the office at certain times every day for 5-6 days a week. Depending on the company’s rules and regulations, they can even get bonuses for overtime.

2. More employee benefits

Some employers give contract workers similar or at least half benefits full-time worker gets. They may give full-time employees a company cell phone or pay for their health insurance.

For people with family or other commitments, this may make a big difference. The lack of health insurance or benefits can become an enormous problem for a parent or someone with a spouse or other responsibility.

3. Higher chances of getting permanent jobs

Contractors are usually hired by companies that are looking to expand their business and want to get rid of the gig workers they currently have.

They can be hired permanently if they perform well and keep their job for a certain amount of time.

Gig workers are often given more than one job in the same period. The employer may give them another gig after the first one is finished. This means that they have no chance to become permanent employees.

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Which Source of Income Would You Pick?

There are advantages and disadvantages to both contract work and gig work, but the choice is ultimately yours. If you want to work for yourself, contracting and gig work are the best options to get your feet wet.

It will take some time to learn how to navigate both options, but they are both worth exploring. The most important thing is to take a step back and consider all of your options before deciding.

Gig work is a good option for people who are not interested in the routine of full-time employment and need some flexibility in their schedule.

Contract workers, on the other hand, are usually people who have an interest in future permanent roles and a monthly salary.

Our blog, WorkDeputy, has written extensively about both options, so be sure to check out the archives for more information.