Choosing between independent consulting and being a company’s employee is an important decision. Each choice has its pros and cons, and being fully informed of the benefits and drawbacks will help you decide what is best for you.
We have put together a quick Pro/Con list based off of our discussions with candidates. This list is not intended to be all inclusive, but hopefully will make sure you have more information to help you make your decision.
Pros of being an independent consultant:
You have more flexibility with your schedule. If you want to spend the summer with your family in Spain, you are able to choose projects to accommodate your plans. Like to be off on Fridays? This is easier to coordinate as a consultant.
You choose which projects to work and which to pass up. If you have a passion for oncology, being an independent consultant gives you the freedom to work only oncology trials. Similarly, if you find cardiology trials to be uninteresting, you can avoid these projects. You can also be more selective as it relates to the type of company you wish to work with (Sponsor vs. CRO, Large vs. Small, Pharma vs. Biotech or Device, etc.).
You may have the ability to take additional tax deductions. If you are an independent consultant, you can write off everything considered to be a business expense. This can include non-reimbursed travel expenses, home office equipment and supplies, home office space, internet and telephone services, etc.
Additionally, independent consultants can typically earn higher hourly rates because company’s incur less overhead and burden costs than they would when hiring full-time employees.
Cons of being an independent consultant:
You now have two jobs – your clinical research contract position and marketing yourself for your next clinical research contract position. Being a consultant means you are responsible for finding your next contract so you will have to stay focused on constant networking and personal branding. Depending on how often your trials turn over, you may be searching for new trial work several times a year.
You are responsible for your own health insurance and retirement plan. Many talented clinical research professionals choose to be directly employed by a company because of benefits. Providing your own health insurance can be pricey, and putting money aside for your retirement requires a lot of discipline.
You no longer have paid time off. It is simple – when you are not working, you are not getting paid.
You are responsible for providing your own clinical research professional liability insurance. Although the cost is not significant, traditional employees enjoy the benefit of being covered by their employer company while Independent consultants are required to cover themselves.
You are responsible for paying your own taxes. This doesn’t mean you will pay more taxes, it just means you have to do it instead of someone else doing it for you. This means you will need to be disciplined enough to continually set aside a portion of your hourly rate pay your own withholdings.
As you can see, there are plenty of benefits, as well as drawbacks, to being an independent clinical research professional. In order to make the right decision, you must evaluate what’s most important to you in terms of both your professional and personal lives.
Have any questions? Ask the team here and we will be happy to help.
Written by Katie Fidler
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