Press releaseFriday 23 November 2007
RESEARCH SHOWS IT CONTRACTORS PUT EMPHASIS ON LIFESTYLE BENEFITS ABOVE FINANCIAL REWARDS
- Over 2,000 contractors surveyed
IT contractors value the lifestyle benefits to contracting above the financial rewards, suggesting that recent challenges to their tax status may not lead to contractors giving up freelancing as has had been feared, according to fresh research from giant group plc, the contractor services provider.
The survey by giant among over 2,000 IT contractors shows that many of the myths about IT contractors, which have sometimes informed Government policy, such as their focus on saving tax, are inaccurate.
Asked by giant what the most important factor was influencing contractors to work freelance the largest single group (37%) said the lifestyle/flexible working benefits. The second largest group (22%) said the opportunity to charge more for their work, but only 15% claimed reducing their tax bill was their prime consideration.
Matthew Brown, Managing Director, giant group plc, comments: “This research gives the lie to the myth that contractors are primarily motivated by tax savings, yet to an extent that erroneous belief that has driven much policy towards them in recent years.”
“It was feared that relentless challenges to contractors’ tax status would drive IT professionals away from freelancing, but this research would suggest otherwise. Tax is an issue for every worker in the UK, but contractors still enjoy considerable lifestyle benefits and it is those benefits that really make freelancing worthwhile.”
He adds: “The Government has made flexible working a major item in the Queen’s Speech. If it is serious about this, incentives to encourage freelancing ought to be on the agenda and regulation which will undermine contracting, such as the Agency Workers Directive, should be resisted.”
61% of contractors said they thought the variety of work was better when freelancing than when working as an employee.
Matthew Brown says: “It is this variety of work which, apart from making freelancing stimulating, serves as a mechanism for the transfer of skills and often means contractors are one step ahead of their colleagues in permanent roles in terms of familiarity with the latest technologies. This is a critical weapon in the ongoing battle against skills shortages in the UK IT industry.”
The survey also revealed that 57% of contractors said they had greater autonomy than employees. Only 15% thought they had less.
Matthew Brown adds: “Contractors enjoy a degree of autonomy over how they manage their work which very few permanent employees can boast of. It is these management skills which need to be nurtured if the UK IT industry is to move up the skills ladder and stay ahead of overseas competitors.”
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