Contracting Vs Permanent Roles: Navigating Your Cyber Career

As a cyber professional in today’s dynamic market, there a variety of employment options available to you. The two main choices are between contract or permanent roles with both offering unique advantages and considerations. Understanding the differences between them is crucial for making informed career decisions. While traditionally we see permanent cyber roles offered to junior professionals, Security Operations Centre (SOC) roles and cyber leadership opportunities, and contract opportunities more for cyber engineers, cyber architect and GRC roles, there is still an abundance of both permanent and contract opportunities across all cyber domains.

Here we outline the differences between contract and permanent roles and highlight the factors to consider when navigating your cyber career.

Employment Engagement

The most obvious distinction between contract and permanent roles is the actual nature of employment engagement. A permanent role refers to an ongoing, long-term position within an organisation. These typically include job security, employee benefits, and entitlements, such as personal and annual leave, long service entitlements plus professional development opportunities to advance your cyber career and progress within the organisation. In comparison, a contract role is a temporary engagement for a specified duration or project. Contractors are typically engaged to execute specific tasks or project work which can advance your cyber skillset across a variety of industries. In lieu of the employment benefits their permanent counterparts enjoy, contractors are offered a higher daily rate as compensation.

Employment Duration and Flexibility

Permanent roles are intended to be ongoing and long-lasting, with no defined end date where there can be opportunity to progress through the ranks. Alternatively, contract roles have a predetermined duration, sometimes with the potential of extensions given the nature of the project. Cyber contracts can range from several months to a year or even several years, depending on the requirements of the project or assignment. For employers, a contract engagement allows greater flexibility to adapt to changing business needs, while for contractors the flexibility of a contract give the opportunity to explore diverse projects, gain experience across multiple industries, and have the freedom to choose when and where they work.

Job Security 

The security of your position is an important consideration when comparing contract and permanent roles. As a permanent employee you generally enjoy a higher level of job security as it includes more stable income and employment without an official end-date. In contrast, contract roles are temporary and hold a certain level of uncertainty. Contractors are engaged for specific projects or periods, and in most cases employment ends once the contract is completed. Notice periods to end an engagement are much shorter than in a permanent role and the eventuality of a project can be tied to factors such as funding which can be unpredictable. Contractors may find consistent work by securing successive contracts, in particular those that partner with a recruitment agency, however there is typically no long-term guarantee of stability.

Compensation and Benefits 

Compensation and benefits vary significantly between contract and permanent roles. Permanent employees receive an annual salary along with additional benefits such as paid leave entitlements, long service leave accruals, training and development opportunities and funding, and in some instances, career progression and succession planning. These benefits provide a sense of security and stability in addition to progressing your cyber career. 

On the other hand, contractors are typically paid on an hourly or daily rate. These rates tend to be higher than their permanent colleagues, tied to specialised skills or project-specific expertise, and the deadline driven nature of the engagement. However, as part of their higher rate Contractors are responsible for managing their own benefits and financial obligations including income tax, superannuation and long service entitlements. Some recruitment agencies such as e2 Cyber offer contracting services to ensure you meet all the legal requirements and enjoy benefits such as salary sacrificing and access to training platforms.

Career Development and Advancement

As outlined within benefits, permanent roles often provide more structured career development opportunities. Permanent employees can have access both internally or be offered a budget to participate in training programs, mentorship, and career progression planning. This allows them to build long-term relationships, develop expertise, and advance their careers within the company. In comparison, contractors may have less access to formal career development programs, as their focus is primarily on delivering specific outcomes. However, contractors can leverage their diverse experiences to build a broader skill set and expand their professional network, which can open up new opportunities for future contracts or permanent roles elsewhere.

Practical Comparison: Cyber Security Architect Role

To give you a good understanding of how a permanent and contract engagement would differ for a cyber security opportunity, we’ve broken down a Cyber Security Architect role based on the current market:

While comparatively there’s a $120k up-front difference in salary between the permanent role and the contract, the contract role is only guaranteed for 6 months of the year. When you factor in paid leave entitlements and training access, the financial gap between the opportunities reduces. In this example, regardless of engagement type, you would want to drill down into the type of organisation you are joining, whether you will be working with colleagues that can support your career development as an unofficial mentor and if you’re working on a project that could unofficially advance your skillset and therefore your career.

The differences between contract and permanent roles are significant and should be carefully considered when making career decisions. While permanent roles offer stability, benefits, and long-term career prospects, contract roles provide flexibility, diverse experiences, and the potential for higher income overall. To decide which engagement type is better for you and your career, carefully evaluate your priorities, risk tolerance, and career goals. And while one engagement type might suit one stage of your career, cyber expertise or lifestyle, it’s not necessarily always going to be the same! Preferences can change over time, seeing you transition between contract and permanent roles at different stages of your career. Entry level roles are more likely to be permanent opportunities where you can grow and develop with the support of a mentor. Mid level roles and having a project work focus could see you move into contract work while moving up the cyber ladder to a more experienced senior role could put you back into leading a team in an ongoing opportunity. Ultimately, being aware of the distinctions empowers individuals to make informed choices that suit their unique circumstances and aspirations.