Consulting: An Easy Way to MORE
Updated: Sep 16, 2020
I have personally been both a consultant (both w2 and independent) and a full time employee. What are the advantages and disadvantages of being a consultant?
Consultants versus full time employees: usually it is a higher wage. The reason ‘why’ is most consultants are hired for a specific period of time (ranging from 3 months to renewed contracts that are multi-year) to work on a project or with to be an additional staff if a client is short staffed in regards to existing full time employees.
Consultants that work onsite are made to feel at home. MOREOVER, they usually avoid any office politics since there length of tenure is unknown so it is no point to be involved. Depending upon one’s specialty your industry verticals can vary greatly.
Naturally as a consultant, there are also negatives such as no career advancement, promotions or raises or bonuses. Sometimes consultants can be viewed as ‘hired guns’ that have no loyalty to their client base. In my experience, I have not seen that. Consultants usually always give a full effort to improve their client’s future.
Consultants are either classified as (1) w2 consultants. This means the agent (or vendor) pays him/her directly and may offer benefits. The other type of consultant is (2) independent. The independent consultant works directly for himself, carries his own business insurance, and files his own quarterly taxes. The client pays the consultant directly and negotiates the rate and the frequency of pay whether weekly, bi-monthly or monthly.