Who hasn’t – on a day when office politics seemed particularly Machiavellian or that promised pay rise has been postponed AGAIN – fantasised about chucking in a permanent job and contracting? The freedom, the flexibility, the power… it’s seriously attractive. But will it work out for you?

Basically, the answer depends on two things: the demand for your services on a contract basis and your personality.

The former is easy to assess: check the job ads, talk to some recruiters, check with your industry contacts. In most industries, the demand is there. But if you want the big money that you should be getting in exchange for less job security, fewer benefits and a lack of conventional career progression, you need to be offering something that’s in limited supply (and not being off-shored to Bangalore). Contracts typically range from 1-24 months in length. Twelve months is common, probably because contractors are often used to cover people on maternity leave.

Once you’ve established that there’s a strong market for your services, you need to get real with yourself about whether or not you’ve got the personality to make the most of the opportunities provided by contracting, chief among which is the freedom to choose stimulating assignments. Ask yourself the following questions (and if you’re not answering yes to most of them, reconsider telling your boss where to shove it):

  • Are you a networker? Do you have good contacts and are you prepared to use them to get work?
  • Are you organised and responsible? If you go it alone (as opposed to through an agency) you will probably have to register an ABN, submit quarterly Business Activity Statements, put money aside for tax time, contribute to your own super, etc.
  • Are you essentially optimistic and comfortable with the unknown? Can you live with not knowing what your next job will be? Will you be able to chill out between contracts (as opposed to freaking out)?
  • Are you a risk taker who will take advantage of the freedom contracting offers and reject unsuitable offers or chuck in jobs if they aren’t working out?
  • Do you have financial back-up if things get lean? Do you have some savings you could fall back on or parents who would spot you for a month’s rent?

If you’re comfortable with these factors, contracting is definitely something to consider. No longer something to omit from your CV, contracting is a legitimate way to earn great money and – often – negotiate flexible working arrangements. And these days, contract positions often lead to permanent positions, which (sadly) start to look attractive when life becomes more about applying for a mortgage and less about getting in that morning surf!