Careers

permanent vs contract employment

  • Last Updated:
  • Mar 4th, 2015 5:00 am
Tags:
None
Deal Addict
Mar 12, 2006
3924 posts

permanent vs contract employment

Hello guys, I need some pointers from your opinion.

I understand some basics about permanent vs contract employment.
permanent- benefits, pay vacations and job security but pay less.
contract - no benefits and pay vacations, but you can claim some of your expenses.

What would you guys take if you were offered by BMO with a permanent position (operation analyst entry job at 45k) or Telus with a contract position(technology analyst II at $26hr)? I was also told for the contract position that there is possibility to become permanent after a year or 2.


Any opinion would be helpful

Thank you
26 replies
Member
Feb 4, 2015
215 posts
106 upvotes
York, ON
heatwavewo wrote: What would you guys take if you were offered by BMO with a permanent position or Telus with a contract position?
Bit too vague to offer a response to that.
What are the roles? What's the career path? Is it just filling a hole until something better comes along? Is the contract with a view to becoming permanent? Which is more aligned to what you want to do?
What is the salary vs. the contract rate?
Deal Addict
Feb 5, 2010
2764 posts
183 upvotes
Depends on your career goals and the content of the offers. Additional details would help.

i.e what the term of the contract is, does it pay more then the perm offer, difference in the roles
Deal Fanatic
Jul 13, 2009
5244 posts
3536 upvotes
How long is the contract at Telus? Would there be opportunities for the contract to renew or go perm?

What interests you more?

How much more money is Telus?
Deal Addict
Mar 12, 2006
3924 posts
RaySkunk
BMO is operation analyst entry job at 45k, and Telus is technology analyst II at 55k. I was told for the contract position that there is possibility to become permanent after a year or 2, but you never know right.
As for the career path, I wanted to be able to learn as much as possible while I'm on the job and eventually move into higher position (maybe management position).

bhrm
The contract is a year, and there's a possibility to become permanent after a year or 2 that's what i was told.
Member
Feb 4, 2015
215 posts
106 upvotes
York, ON
So, with the contract is it a true contractor rate (per hour, you need to be incorporated and invoice the company), or is it a fixed-term contract, with perhaps some benefits?

Did you check out Glassdoor and see how the two compare in terms of employee satisfaction?

My thoughts (random):
I know a couple of people who previously worked at Telus. They no longer work at Telus. Make of that what you will.
Permanent vs. contract offers no guaranteed job security - you can still be canned whenever, they will just have to pay severance if you're permanent.
BMO recently had poor quarterly results and will be looking to cut costs in the face of a weak economy.
Don't listen to the "possibility" to become permanent after a year or two at Telus. Unless you have something in a contract it means nothing so don't base your decision on that.
What are the other considerations? By that I mean location therefore commuting costs, hours, etc.

I don't think there's a lot in it really if the Telus role doesn't pay vacation or benefits.

Go by what you think you would be happier doing; banking or telecoms. Financially it seems a wash.
Deal Addict
Mar 12, 2006
3924 posts
RayShunk
About the contract, I have not yet finalized everything with the contacting company. But i much believe the contract will be a fixed term with no benefits.
You are right about the job security whether is contract or permanent, they can still let you go for any reasons they create.
I don't have any experiences with either BMO or Telus, but I would be more than happy to hear your friends story why they are no longer with Telus.

For the commuting costs and hours I have some thoughts about it as well. To get to BMO, it will take me approx 40 mins at 24km(one way local/highway combine). To get to Telus will take me approx 30 mins at 10km(one way local).

For some reasons, I think at Telus I will learn more about networking as it involves some configuration. The job at BMO it is more about monitoring, and because they are onsite vendor support team, so if anything goes wrong they support will take care of it. You will learn different things at different jobs, but because I don't have any experiences with either company, it's pretty hard for me to decide what to go for.
Member
User avatar
Oct 20, 2011
348 posts
87 upvotes
Toronto
They always always say 'possible to become perm'

I would evaluate what the career patch i want to take, and if I am out of contract, can I find next job no problem with the experiences I gain?

If it is a mat leave replacent or any other reasons that the person will come back for sure, dun even bother.
Banned
User avatar
Jan 27, 2014
5574 posts
2580 upvotes
What expenses can you claim if you're contract? I want to know as I'm currently contract.
Deal Addict
User avatar
Jun 26, 2006
2628 posts
1003 upvotes
GTA
qee_jo wrote: They always always say 'possible to become perm'
This.

It's not guaranteed that you will get a perm position after 18 months.

However, having a perm position you may feel "safer" and you can explore your career options with flexibility.

Like another poster said, even having a perm position does not mean you're all set, it's just that you will get benefits and such. You may not need the it now but it's still good to have it in case of emergency (i.e. wisdom teeth removal, surgery etc.,).
Deal Guru
User avatar
Nov 30, 2009
12178 posts
603 upvotes
Toronto
The 10K difference is not that too significant when you consider your travel costs and time. Also OP, wouldn't you be eligible for performance bonus at BMO? I think the same thing may apply at Telus too. Is Telus in Scarborough or downtown location? Same with BMO, Mississauga or downtown?

OP map out your lifestyle to both jobs, and then the decision will be a bit easier to make.

[QUOTE]I know a couple of people who previously worked at Telus. They no longer work at Telus. Make of that what you will.
[/QUOTE]

What positions did they work in and which office?
Deal Fanatic
User avatar
Sep 23, 2009
7086 posts
5217 upvotes
If you are dealing with a contract employer or agency, you will have to get hired by Telus within a couple of years, otherwise the agency employing you might get into a little bit of hot water. It's pretty common for people to work 2 year contracts and then they are let go and re-hired 6 months later.

Are you sure you can claim expenses?

Just because you are hired on a contract basis does not mean you are not an employee.

CRA Guide: http://www.cra-arc.gc.ca/E/pub/tg/rc4110/README.html
Deal Fanatic
User avatar
Sep 23, 2009
7086 posts
5217 upvotes
Brief overview follows.

The CRA has designated four key points in deciding if you are self-employed or an employee:

Control - who designates when and where you work? If the company dictates these you are likely an employee.

Ownership of tools - do you own the tools used on the job or does the company? If the company owns the tool, you are likely an employee.

Chance of profit/risk of loss - Who is responsible for the losses caused by your actions or is profitability under your control? If the company takes the risks associated with profit and loss, you are likely an employee.

Integration - Does the company own what is created? If the company owns, you are likely an employee.
Deal Addict
Mar 12, 2006
3924 posts
Lostintruth
I am not sure how much is the performance bonus, but BMO does have evening/weekend shift premium and they are not very significant, maybe $50 more on your pay cheque each month. As for the travel costs and time, Telus (downtown) is only 10km away from me, and BMO (scarborough) is 25km away from me.
Deal Guru
User avatar
Nov 30, 2009
12178 posts
603 upvotes
Toronto
heatwavewo wrote: Lostintruth
I am not sure how much is the performance bonus, but BMO does have evening/weekend shift premium and they are not very significant, maybe $50 more on your pay cheque each month. As for the travel costs and time, Telus (downtown) is only 10km away from me, and BMO (scarborough) is 25km away from me.
And you're driving too? Take Telus. You're central (Spring/Summer is coming much more going on), technology analyst sounds better (this is not my field btw), much better networking opportunities, and going all the way to Scarborough sucks. Keep in mind you take home a bit more each paycheque (unless you really care for benefits?); Telus will open more doors for you.
Deal Addict
Mar 12, 2006
3924 posts
lostintruth
Are you a current employee with Telus? Just wondering if you are and perhaps you have some experiences you can share with me.
:-)
Member
Sep 22, 2009
213 posts
62 upvotes
GTA
I would take the perm at BMO. But you should compare the job responsibilities and which role you like better.

Employers always say there is a chance for perm. Besides, it's less than $10K difference. That's not enough for me, IMO.
Deal Fanatic
User avatar
Nov 2, 2013
5697 posts
1522 upvotes
Edmonton, AB
Generally aside from what you said, some contract work will pay higher, but as of consequence it's up to you to keep looking for work. I have been offered permanent positions with base salary + bonus structure versus contract work with set pay until a certain date (often making more, but it's not permanent work... companies take risk into consideration- to be stuck paying you when business are slow, versus paying you only when they are busy).

Keep in mind permanent positions are not always permanent. You can still be replaced and/or laid off.
Accountant (Public Practice)
Member
Jan 29, 2008
210 posts
96 upvotes
Vancouver
Hi OP happened to read your concern and wanted to give you my insight . First I can only tell you about Telus . Telus only likes to hire / use contract employees , so get rid of them as soon as you don't need them . Telus hiring manager will never give you in writing that he will hire you at end . I got nothing against Telus but my gf has had that done to her just recently and she's in IT . Manager told her that he would hire her 200% and his word is his word . Now she just got laid off and no more contract extension .... And it's not her work ethic ... It's the Telus way .

So if it were me I would take that permanent position and enjoy till they get rid of u with severance / benefits / vacation pay / stats pay . Ur not making in 100ks to right off 1000's in taxes if you on contract .... So y waste time and money .

Hope it works out well for you whichever you decide . Btw what city you in ? Jobs wise .

Top