You do bring up a good point about contractors being let go to save money. I would contend that if you were a contractor in the banking industry during the past three years and did not think that you could be let go at a moment’s notice, then you were not paying attention to the news. In fact I would rather have been a contractor at a company like Lehman Brothers than a FTE. When they locked the doors, it was on the FTE too. A sudden job loss can happen to all of us regardless of FTE or Contractor.

Whether you are a Consultant or a FTE, you need to have a certain mindset. An individual can run into problems when they are a consultant but think like they are a FTE, for example you want paid vacation, subsidized benefits, and someone paying your taxes for you.

Likewise you will run into problems if you are an FTE and think like a consultant, such as I should get paid for overtime or I should have been put on this project or be working with that technology and not the contractor.

It is part of a mindset. For me right now, it would be hard for me to switch back to FTE from Contracting. I have a measure of control that I do not want to give up. Instead of wondering if my contract will end, I know that it will. I have a date that I can plan for. When it gets close to that date, I can have an easy conversation with my client and ask them if they will continue to need my services. I can plan accordingly. Could you imagine the reaction from your boss if you asked what date the company was planning to have layoffs?

As part of the consulting mindset, I am always looking for a job whether I need one or not. If my contract ends tomorrow, I have three places to call that I have already been talking to. I have past clients I have worked for that I can call to see if they need me again.

This topic is definitely an easy one to debate at length as there is no right answer except one, “What is best for you?”