Which Job Position to Take?

A reader weighs two position offers: one is salaried and the other a contract.

A: There is not going to be an easy answer for this since it all depends on your lifestyle and preferences. You have to weigh what each position will offer you and decide which one matches up with what you want.

Since one has benefits and the other does not, you need to look at the benefits offered and decide whether or not you can live without them. The salaried position might offer you the chance to participate in a 401(k), while the contract position does not. If that’s the case, taking the salaried position might be better. A 401(k) plan can be incredibly helpful when planning for retirement — take a look at these two articles that touch on contributing to 401(k)s. It’s basically free money from your employer.

But you have to look at what money the contract position would pay you for the hours you would work. You don’t want to take the salaried position only to learn that with the amount of hours you’re working you could be making substantially more with the contract.

Most people would prefer the salaried position with benefits. But there has to be pros for each position, otherwise why offer both?

Q: Is it better to work on a contracted position (paid a lump sum for the hours I work) or a salaried position (with benefits)?