The fintech industry is fast-paced, innovative, and highly competitive. For professionals in tech and change and transformation roles, choosing between contract and permanent positions is a pivotal career decision. Each option comes with distinct advantages and challenges, and the right choice often depends on your career goals, personal circumstances, and risk tolerance.
This article explores the key differences, benefits, and potential drawbacks of contract and permanent roles in fintech, offering insights to help you navigate this decision.
What Defines a Contract Role in Fintech?
A contract role typically involves short-term, project-based work. Contractors are typically hired to tackle specific tasks such as implementing a new software system, managing a digital transformation project, or addressing a cybersecurity issue.
Key Features of Contract Roles:
Project-specific focus: Contractors bring specialised skills to address immediate challenges and meet specific goals within a specified timeframe.
Contract lengths may vary: Roles are usually offered on a fixed-term basis and can range from 3 to 12 months, with the possibility of extension depending on project needs. Rolling contracts are also an option, which continue until either the employer or the contractor decides to end it by giving the required notice outlined in the terms of the contract.
Greater flexibility: Contractors can work for multiple clients across diverse industries, building a robust portfolio.
What Defines a Permanent Role in Fintech?
Permanent roles offer long-term employment with a focus on organisational growth and stability. Employees often take on broader responsibilities beyond specific projects, contributing to the company’s long-term success.
Key Features of Permanent Roles
Job security: A steady income and comprehensive benefits such as healthcare, pensions, and paid leave.
Career development: Opportunities to advance within the organisation, receive training, and take on leadership roles.
Cultural integration: Being part of a team and contributing to the company’s mission and values.
The Benefits of Contract Roles in Fintech
Higher Earning Potential
Contractors typically earn higher day rates, compensating for the lack of employment benefits. For highly specialised roles like DevOps engineers or business analysts driving digital transformation, rates can range from £400 to £1,000+ per day.
Skill Specialisation
Contractors often work on cutting-edge projects, gaining exposure to the latest technologies and methodologies. This can make them highly sought-after experts in their niche.
Diverse Experience
Switching between projects allows contractors to work across various fintech verticals, such as hedge funds, digital banks, and payment processors, expanding their knowledge and network.
Work-Life Balance
While not guaranteed, the project-based nature of contracting may allow for more control over your schedule, including the ability to take extended breaks between roles.
The Drawbacks of Contract Roles in Fintech
Lack of Stability
Contractors face gaps between roles, and securing consistent work requires strong networking and self-marketing skills.
Limited Benefits
Unlike permanent employees, contractors don’t receive employer-provided benefits, such as health insurance, paid leave, or retirement contributions.
Fewer Growth Opportunities
Contractors may not have access to internal training programs or promotions, as they are typically hired for specific, short-term tasks.
The Benefits of Permanent Roles in Fintech
Long-Term Security
Permanent positions offer predictable income, making it easier to plan financially. Additionally, benefits such as pensions and paid leave contribute to overall stability.
Career Progression
Employees in permanent roles often benefit from mentorship, internal promotions, and leadership training programs that contractors may not access.
Organisational Impact
Being part of a company’s core team allows employees to influence the organisation's long-term strategy, culture, and vision.
Team Collaboration
Permanent roles foster deeper relationships with colleagues and clients, enhancing collaboration and job satisfaction.
The Drawbacks of Permanent Roles in Fintech
Lower Immediate Earnings
While the total compensation package (salary + benefits) may be competitive, the base salary is often lower than contract rates for comparable roles.
Less Flexibility
Permanent employees are more likely to be tied to a traditional work schedule, with fewer opportunities to take extended breaks.
Specialisation Limitations
Long-term roles may limit exposure to diverse projects, making it harder to specialise in fast-evolving niches.
Contract vs Permanent: What’s Trending in Fintech?
In the fintech sector, demand for contractors and permanent staff fluctuates depending on market conditions:
Contractor Demand: During periods of rapid growth or transformation, organisations often hire contractors for scalability and expertise. For example, during mergers or regulatory changes, contractors can fill immediate skill gaps.
Permanent Hiring Drives: As fintech companies mature, they focus on building robust in-house teams to sustain operations and drive innovation.
Which Should You Choose?
Consider Your Career Stage
Early Career: Permanent roles offer stability and learning opportunities, making them ideal for professionals starting their careers.
Mid-to-Late Career: Contracting can be lucrative and fulfilling for those who have already built a strong skillset and network.
Evaluate Your Risk Appetite
If you value security and benefits, permanent roles may be a better fit.
If you’re confident in your ability to secure consistent work, contracting offers higher earning potential and flexibility.
Assess Your Long-Term Goals
Contractors often focus on short-term achievements, while permanent employees can work toward long-term impact and leadership roles.
Closing Thoughts
The choice between contract and permanent roles in fintech is highly personal and depends on individual priorities and career aspirations. Both paths offer unique opportunities, and the right option may shift over time as your circumstances and the job market evolve.
Regardless of which you choose, connecting with an established recruitment agency in fintech will put you in the best position to consistently secure employment, but especially if you’re a contractor.
If you’re considering a new contract role in fintech, our team at Hunter Bond specialises in matching professionals with opportunities that align with their skills and goals.
Click here to view our live contract roles!
