It can often feel like a never ending pursuit looking for a career move which allows you to have a balanced lifestyle, whilst still challenging your skillset and the desire to keep learning. Many finance professionals lean into the idea that a permanent role is the best career outcome for them, providing stability and sometimes, financial benefits. However, if you prioritise other lifestyle factors over this or are wanting to rapidly increase your skillset, a fixed term contract may in fact be the best pathway forward.
What is a fixed term contract?
A fixed term contract is a type of employment contract that lasts for a set period of time negotiated between the employee and employer. Usually, as well as providing you lifestyle benefits like flexibility and balance, they are a great learning opportunity allowing you to experience a range of companies and industries in short few years, especially if you are earlier on in your career - or if you are at the point where you want to do things like travel between contracts. Companies can use fixed term contracts for a variety of reasons, such as to cover a specific project, to provide maternity cover or to meet seasonal demand. So, what are the benefits of being on a fixed term contract?
One of the main benefits of being on a fixed term contract is the job security it provides. While the contract may have a set end date, during the period of employment, you are treated as any other employee in the company.
In the financial space, fixed term contracts can be particularly beneficial for both employers and employees. A good example of this is in project-based roles, such as financial modeling or mergers and acquisitions, fixed term contracts provide flexibility to hire employees for the specific duration of the project, without the need to commit to a permanent hire. This can save the employer money on salaries and benefits, while allowing you to gain valuable experience and potentially secure future contracts with the company or elsewhere with new skills under your belt.
In the highly regulated and ever-changing finance industry, fixed term contracts can also provide protection for both parties. Employers may be hesitant to take on permanent hires due to potential changes in regulations or economic conditions, while you may prefer to avoid long-term commitments in a volatile market.
At Communicate, we can help you understand your contract entitlements to ensure you are fully across the benefits of the contract.
Opportunities to gain new skills
Fixed term contracts can often provide opportunities to gain new skills and experiences. This is particularly true for short-term contracts that are designed to cover a specific project or event. During your time on the contract, you may be required to take on new responsibilities or work with different teams, which can help to broaden your skill set and make you a more valuable employee in the future. The L&D opportunities really can be endless!
Since contracts are often project-based, you may be exposed to a variety of different responsibilities that you may not have had the chance to learn in a permanent role, or a larger team. For example, an employee hired on a fixed term contract to work on a financial modeling project may also gain exposure to different technologies, strategies, and techniques.
The short-term nature of fixed term contracts may also encourage you to take on new challenges, as you have a limited amount of time to make an impact. This can be particularly beneficial for those looking to transition to a new area of finance or gain a more specialised skillset. The networking opportunities that come with a fixed term contract can also be a valuable experience when looking to build your professional network and secure future opportunities in the industry.
In a post-COVID world of greater work life balance, you may find fixed term contracts can offer a greater level of flexibility that permanent contracts may not. If you have a particular skill set that is in demand during a certain period of the year, you may be able to negotiate a fixed term contract that covers just that period. This can give you the flexibility to pursue other interests or work on other projects throughout the rest of the year.
With a clearly defined end date on fixed term contracts, you may have more control over your workload and schedule, as you can prioritise their tasks and ensure they completed within the contract period. This can allow for a more balanced approach to work and personal/family life, as you can plan your time off or schedule other commitments around your work schedule. Additionally, the project-based nature of fixed term contracts can provide a more manageable workload, as opposed to the potentially never-ending demands and pressure of a permanent role.
Does this sound like your next career move? Get in touch with us today to discuss what current opportunities we have available.