contract vs perm

Pros and Cons: Contract VS Permanent

Does this sound familiar?

You have been looking for a permanent Infrastructure Analyst for the last 3 months, have waded through hundreds of promising CV’s, spent hour’s interviews, only to end up back at square one, coupled with losing good permanent designers to your competition.

We have a solution. To take on a consultant on a day rate contract costs on par if not less than taking on a permanent employee (+ 3 months of your life).

Contract VS Permanent

Contract: £375 per day

Permanent: £55,000 per annum

Contract VS Permanent

Contract: Employers NI 13.8% – (Paid by us)                                                       

Permanent: Employers NI 13.8% – (You pay)

Contract VS Permanent

Contract: Employees NI 12% – (Paid by us)

Permanent: Employees NI 12% – (You pay)

Contract VS Permanent

Contract: Finder’s Fee (Zero)                                                                                

Permanent: Finder’s Fee Avg 20% (You pay)

Contract VS Permanent

Contract: Avg 28 days holidays per annum (You do not pay)

Permanent: Avg 28 days holidays per annum (You pay)

Contract VS Permanent

Contract: Avg Sick days 10 days per annum (You do not pay)                              

Permanent: Avg Sick days 10 days per annum (You pay)

Contract VS Permanent

Contract: Total cost: £82,500 per annum                                                            

Permanent: Total Cost: £80,190

(This figure does not include further costs associated with company perks ie; pensions, healthcare, bonus etc.)

Additional benefits of contractors

–          Although commonly misunderstood, most contractors prefer longer contracts. If anything it will be your permanent candidates that are leaving your jobs to go contracting.

–          No recruitment finder’s fee. Which if a permanent member decides to leave is thrown away.

–          Another misconception is that contractors gain the knowledge then leave, when in fact they can impart their knowledge and experience to you and the team.

–          Contractors work on a day rate so their work mentality is to work at their full potential from day 1.

–          Contractors are able to hit the ground running, and do not take as much time to get up to scratch on your systems as maybe as permanent developer would.

–          Flexible Notice periods and end dates on contract.


All contracts at Marcus Donald opt outside of AWR (Agency Workers Regulations). The understanding and intention of all parties is therefore that no individual providing Services on behalf of the Service Provider will be an ‘agency worker’, within the meaning of AWR, and that AWR will not apply in respect of this engagement.

We are governed by REC (Recruitment Employment Federation) and follow their strict guidelines


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