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Old 29.06.2021, 09:36
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Permanent vs Temporary Contract

Hello Everyone,

Recently I received an offer for a temporary position (1 year) through a third party, in a competitor company. Currently I have a permanent contract, and I am dwelling on what are the pros and cons of accepting the offer for the temporary position. And I came up with the following:
Pros: The salary is better, better working conditions are better, more room for development.
Cons: taking into consideration COVID and the unstable economy that has caused, I will miss the "security", its a little far from where I live. And lastly after 10 months I will be looking for a new job.

I would highly appreciate any extra points that I am missing for comparing the two.
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Old 29.06.2021, 09:42
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Re: Permanent vs Temporary Contract

OP, check your current work-contract what it says about working for a competitor. Normally, you are forbidden to work for a competitor some months after you leave. I would not want to fall foul of this as Switzerland is a small country and word gets around.
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Old 29.06.2021, 10:50
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Re: Permanent vs Temporary Contract

If it's in pharma a one year contract is rarely not renewed i.e. most likely will be renewed however yes you have to factor that in, although the RAV will cover you if it doesn't and you can't find a new job. Ideally you want the new salary to cover the risk of a period of unemployment.

In general changing jobs you always run the risk of the new job being worse than the old one, but it could also be better.
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Old 29.06.2021, 22:16
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Re: Permanent vs Temporary Contract

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OP, check your current work-contract what it says about working for a competitor. Normally, you are forbidden to work for a competitor some months after you leave. I would not want to fall foul of this as Switzerland is a small country and word gets around.
Most of these clauses are not legally enforceable and then only if the compazpa,s ,our salary during the time. Unless OP is a C-suite I would not worry too much!
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Old 29.06.2021, 23:16
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Re: Permanent vs Temporary Contract

Thank you everyone for your replies, I do not think there is a problem with competition. I would be more concerned on the "permanent vs temporary" comparison in every aspect that I can think of.
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Old 29.06.2021, 23:31
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Re: Permanent vs Temporary Contract

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Thank you everyone for your replies, I do not think there is a problem with competition. I would be more concerned on the "permanent vs temporary" comparison in every aspect that I can think of.
If your permit is due to expire anytime soon, you might find that a short term contract lands you with an L-permit.
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Old 30.06.2021, 00:58
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Re: Permanent vs Temporary Contract

Since you seem keen on job changing, why not do proper job search and find something new, inspiring but with permanent contract?
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Old 30.06.2021, 01:15
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Re: Permanent vs Temporary Contract

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The salary is better,
You’d need to be very familiar with the calculations for contract work to be sure on that one, many have been disappointed.
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Old 30.06.2021, 07:54
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Re: Permanent vs Temporary Contract

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You’d need to be very familiar with the calculations for contract work to be sure on that one, many have been disappointed.
I would just ask the agency for an example monthly payslip to be sure. Multiply that by 12 and then subtract 30 days for holidays/sickness.
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Old 30.06.2021, 10:09
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Re: Permanent vs Temporary Contract

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I would just ask the agency for an example monthly payslip to be sure. Multiply that by 12 and then subtract 30 days for holidays/sickness.
Well this, but it is not that simple. Many agencies adjust the calculation in order to accumulate enough revenue to be able to pay holidays and sick pay, which is returned to you at the end of the contract if not availed of.

Also such contracts are designed to put a much cash in to the individual's pocket as possible. That means that the pension, invalidity, loss of income insurance is not as good as a permanent contract. Also it does not include a training budget and paid time for training etc...

So it's important that you compare like with like.
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Old 30.06.2021, 10:12
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Re: Permanent vs Temporary Contract

There isn't much "security" in a permanent role these days - any company "restructure"/ "right-sizing"/"change of strategic focus" project can leave permanent staff facing unexpected redundancy and job loss.

IMO, if your notice period with your permanent role is anything less than 6 months, you don't really have much "security" at all. Some additional factors for you to consider then:
  • IF your skills/experience are in demand now and in the future, do you think you'll find work easily towards the end of a year-long contract, especially if the contract work has increased your core skill set/technical knowledge?
  • Have you explored what options might exist for conversion to salaried staff if you're deemed "high performance" as a contractor?
  • When you're considering pay level, are you factoring in "total package" (eg: many fixed-term contracts pay a little more, but don't have eligibility for annual performance bonus; will you receive pro-rata benefits for the fixed term contract)?
  • Have you spoken to your current boss about your frustrations on development/pay to check whether anything else is available to you internally? (amazing how many companies manage to come up with "magic" at the risk of losing a high-performance employee, especially when niche technical knowledge or key relationship value is concerned)
  • Are you in a line of work and/or have a work history where taking on a contract role will damage or enhance your competitiveness against other job-seeking peers? (eg: some folks bounce from contract to contract chasing money/work variety/project challenge/etc, but then find themselves at a point where they cannot get permanent jobs again because they're deemed "flight risks"....other folks stay in salaried roles and rack up long tenure, and then find they haven't developed the skills/expertise/networks needed to get past lower/middle management roles whilst peers with different work histories race up the corporate ladder)

At the end of the day, this decision I suspect will come down to your risk appetite. If developing your career is important, and IF you think you'll be happier in the contract role, and IF you're confident in your marketability, and IF you have a Plan B to cover your financial commitments if all goes belly up.....

Last edited by smileygreebins; 30.06.2021 at 10:25. Reason: forgot a key point!
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Old 30.06.2021, 10:33
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Re: Permanent vs Temporary Contract

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OP, check your current work-contract what it says about working for a competitor. Normally, you are forbidden to work for a competitor some months after you leave. I would not want to fall foul of this as Switzerland is a small country and word gets around.
Such restrictions usually only apply in very specific industries or when working in specific areas within a company. People switch to 'competing companies' all the time within the financial and professional services industries and there is no reason why that would be restricted by 'default'.
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Old 30.06.2021, 19:16
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Re: Permanent vs Temporary Contract

No, that is not the case.
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Old 30.06.2021, 19:18
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Re: Permanent vs Temporary Contract

I mean you are right, but my observation is that companies, even the big one offer fixed contracts since last September and they continue to do so due to the market uncertainty.
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Old 30.06.2021, 19:18
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Re: Permanent vs Temporary Contract

Thank you for that, they are some extra deductions but not a big difference. But good point
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Old 30.06.2021, 19:19
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Re: Permanent vs Temporary Contract

Thank you for that relaly good point
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Old 30.06.2021, 19:25
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Re: Permanent vs Temporary Contract

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There isn't much "security" in a permanent role these days - any company "restructure"/ "right-sizing"/"change of strategic focus" project can leave permanent staff facing unexpected redundancy and job loss.

IMO, if your notice period with your permanent role is anything less than 6 months, you don't really have much "security" at all. Some additional factors for you to consider then:
  • IF your skills/experience are in demand now and in the future, do you think you'll find work easily towards the end of a year-long contract, especially if the contract work has increased your core skill set/technical knowledge?
  • Have you explored what options might exist for conversion to salaried staff if you're deemed "high performance" as a contractor?
  • When you're considering pay level, are you factoring in "total package" (eg: many fixed-term contracts pay a little more, but don't have eligibility for annual performance bonus; will you receive pro-rata benefits for the fixed term contract)?
  • Have you spoken to your current boss about your frustrations on development/pay to check whether anything else is available to you internally? (amazing how many companies manage to come up with "magic" at the risk of losing a high-performance employee, especially when niche technical knowledge or key relationship value is concerned)
  • Are you in a line of work and/or have a work history where taking on a contract role will damage or enhance your competitiveness against other job-seeking peers? (eg: some folks bounce from contract to contract chasing money/work variety/project challenge/etc, but then find themselves at a point where they cannot get permanent jobs again because they're deemed "flight risks"....other folks stay in salaried roles and rack up long tenure, and then find they haven't developed the skills/expertise/networks needed to get past lower/middle management roles whilst peers with different work histories race up the corporate ladder)

At the end of the day, this decision I suspect will come down to your risk appetite. If developing your career is important, and IF you think you'll be happier in the contract role, and IF you're confident in your marketability, and IF you have a Plan B to cover your financial commitments if all goes belly up.....
Thank you for the extensive answer, really helpful.
points:
1. Yes
2. Yes I have and there is a salary review in that case.
3. Good point too, but did not look into that too much.
4. Yes I have, and there was nothing that could be done.
5. Yes you are right, but when you are "stuck" on a job and the only thing you care about is toxic, and you are not developing then I would choose to go for a contract get experience and then connect the dots, market myself properly and land a permanent job.
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Old 30.06.2021, 23:02
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Re: Permanent vs Temporary Contract

In a nutshell, I'd say permanent job is best if you know how to keep appearances but your true aim is to work as little as possible (work smart not hard ), whilst contracts are good if you love what you do and you would like develop your skills plus earn as much as your skills are currently worth. The downsides of both are obvious, salary and career cap in a permanent role, high mobility on a contracting path.
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