The Fixed Term contract (FTC)

What it's like to be a FTC contractor, the many parallels to being permanent and how it's different to other contract types

A friend of mine has been out of work for several months. All the roles she’s applied and interviewed for are permanent, because that’s her preference; a secure, long-term commitment with all the corporate bells and whistles.

But after reading my contracting blogs again, she joked it might be time to broaden her options and think about “becoming a contractor”.

Be more verb

Stephen Fry tells us “we are not nouns, we are verbs. I am not a thing - an actor, a writer - I am a person who does things - I write, I act - and I never know what I'm going to do next. I think you can be imprisoned if you think of yourself as a noun”.

And here’s the thing. You don’t ‘convert’ to contracting; it’s not a cult you can never leave, nor does it define your professional identity - it's something you do. If you looked at my resume you'll see all the different ways I've worked with no particular preference. In the last couple of years alone I’ve been a permanent employee, a fixed term / day rate contractor and a freelancer. In the spirit of transparency, I've also applied for a couple of permanent roles which I thought were great opportunities. My point is, where it suits me to contract, I'm happy to do but it isn't 'who I am", it's what I do (if I choose to).

A contract is a way of contributing your particular set of skills to a brief - be that as part of an extended arrangement or a fleeting pit stop - and, crucially, it’s not just for the few, but the many (and don’t let the die-hard contractor club tell you different*).

What are the differences between being a fixed term contractor and permanent employee?

In my experience, the only real difference is my departure date has been agreed in advance. I’m currently almost three months into a fixed-term contract (FTC) and this is as close as I've come to working like a permanent employee.

I have all the same benefits, holiday and sickness entitlement and development opportunities. I work in rhythm with the permanent employees, observing their 'office hours" and hybrid working arrangements.

They just have plenty of time to plan my leaving do.

So, why settle for a FTC when you can have job security with a permanent role?

As with all my blogs, this is just my opinion, but I don't personally believe there is such a thing as job security. You only have to look at LinkedIn posts to see how many broad stroke redundancies have left people unemployed and with very little notice (or recompense).

But if job security is arguably no more than a perception, it's worth acknowledging that so much of life is also predicated on planning without any guarantees. So, on that basis, it's fair to assume your permanent job might be the long-term gig you expect. So, all I'm asking is, don't let security be the reason you decide not to apply for a dream role that might also be a FTC.

So how does an FTC compare to being a contractor?

I wrote a piece last year on the different types of contract, including the nuances of freelancing (not covered below), but I wanted to capture the different 'feels' of each - rather than the mechanics - so you have an idea of what to expect 'on the job'.

This is my experience of being a contractor versus the role of FTC/permie:

Fixed-term contractor/permanent	Day rate contractor
I have a manager who is tasked with ensuring my continued development and wellbeing	There is a person I report into (let's call them my line manager) who provides me with a project brief and with whom I agree a way forwards to reach my objectives
I work in a team. We have weekly meetings where we share our collective progress (and challenges) on different tasks and projects, and brainstorm solutions where appropriate	I mostly work alone but am sometimes aligned to a team(s) where there is significant crossover. I can seek out the perspectives of my stakeholders but I don't have the luxury of their time to focus on my specific objectives
I have a job description which clearly outlines expectations for the role and a vision for what success looks like	I understand the brief of my contract and use a consultative / strategic approach to complement expectations and objectives of the brief. Owning my choices and being accountable are critical components (often without a safety net)
My manager and team mates help keep me informed of broader, inter-related activities across the organisation which may impact my role and responsibilities	I need a helicopter view of broader, organisational activities, which may impact my outputs. For this I must identify and overcome silos, proactively seek out my stakeholders and understand their objectives, as well as explaining mine.. I can't rely on my line manager to provide this detail (as they may not even be aware of it)

When should you consider a FTC?

If, like my friend, you're finding the market quieter on the permanent side, a FTC might be worth considering.

If you're returning to work after a break, or need a quick exit out of a toxic working situation (no point in pretending those don't happen), this is a way to give yourself some valuable breathing space.

And if you ever wanted to be your own boss (but are really nervous about making the leap), working on an FTC basis provides a baby step along the journey of working to an end date.

Where will you go next?

I love this quote by Langston Hughes:

"I have discovered in life that there are ways of getting almost anywhere you want to go, if you really want to go"

I sometimes think of contracting as a game of Donkey Kong. You're at the bottom of an obstacle course and your aspirations are at the top, guarded by DK. He's throwing barrels at you (a metaphor for life's curveballs) and you're pivoting up the course but whatever means are available to you.

Sometimes, contracting is that pivot.

*You'll know the type when you come across them on LinkedIn, who only consider proper contracting to be 'outside IR35' (where your day rate is paid direct into your company bank account with deductions payable taken care of by an accountant; arguably more cost effective for those wishing to get deep into the detail. I don't.)