5 Reasons Why You Should Work as a Contractor in New Zealand

Oct 09, 2022

The IT industry in New Zealand continues to thrive post-pandemic, making up 8% of New Zealand’s GDP and employing 5% of the workforce. As the technology industry grows at a breakneck speed, so does the demand for capable and skilled tech talent, both in a permanent and contract capacity. 

 

With a fast-growing industry, and border restrictions put in place during the pandemic limiting access to international talent, more jobs and opportunities are waiting to be filled, resulting in demand for more contractors in the same field. 

 

According to an article released by Stats NZ in 2019, an upward trend in contracting in New Zealand can be seen in the coming years as the world enters the ‘gig economy’ where more people enjoy short-term contracts or freelance jobs. 

 

So why are so many people choosing to work as contractors? What benefits do they enjoy? Why should they consider entering the New Zealand market? 

 

Below are five reasons you should consider becoming a contractor in the IT industry in New Zealand today: 

 

1. The perks of a flexible lifestyle 

Since the IT/technology sector in New Zealand is thriving now more than ever, more job openings and gigs await you in the field. If you are someone who enjoys a flexible work schedule and is not keen on committing to a permanent role, contracting in one of New Zealand’s most competitive sectors should be your next big career move. 

 

According to a survey conducted between October to December 2018, 77% of contractors in New Zealand said they had a lot of control over how their daily work was organised. This means more satisfaction when it comes to work and more freedom in terms of how you manage your time and tasks, and overall work/life balance.

 

Moreover, contracting provides opportunities to work with a variety of different companies and clients, allowing you to gain experience in different areas of the technology industry, which may lead to career advancement later on if you decide to go full-time once your contract expires. 

 

2. Contracting in the IT sector gives you access to new skills 

Contracting has many benefits, but one of the greatest ones is that it gives you access to new skills. If you are interested in learning something new, or want to develop a skill that isn't required by your current employer, contracting can be the perfect option to expand your skillset. 

 

The New Zealand IT industry is constantly changing and evolving, with new technologies being developed every day and newer versions of software being introduced regularly. In order for you to stay relevant in this field, it’s important that you keep up-to-date with these changes by learning new skills and gaining more experience. 

 

As a contractor, you have the opportunity to do just that on an ongoing basis because most contracts last between 6 months and 2 years – potentially giving you exposure to new systems, technologies and projects on a regular basis.  

 

3. The compensation remains attractive for highly skilled professionals

Contractors tend to earn more than permanent employees, and you are in charge of your working hours. You can choose which contracts you take on and choose how many contracts you take on over a period of time. The more projects you handle and the more skilled you are in your niche of expertise, the higher compensation you can get. 


According to an article released in June, more technology professionals in New Zealand have a higher chance of getting a pay raise due to skills shortage forcing employers to offer more competitive compensation than in previous years. 

 

4. You have more control over your time 

One of the best things about working as a contractor is that you have more control over your time. You can choose when to work, how much time off you need, and how quickly projects need to be completed. As such, this works well with those who have families and want to spend more time with them or travel often. 

 

The freedom that comes from being a contractor also allows for flexible schedules; it doesn't matter if your client needs something done right now or next week—you can work at any point in between without having someone breathing down your neck! 


5. Contracting means greater job satisfaction and less bureaucracy

Contracting in the technology industry allows you to pick and choose interesting or challenging projects that appeal to you personally. Since more jobs are available in the IT sector in New Zealand, there is a pool of opportunities that await you once you enter the market. This means you have the freedom to choose which projects to take on giving you a greater sense of job satisfaction. 

 

The best thing about contracting is that you get to work on interesting projects. You can choose the ones that are right for you and your career goals. You will be doing a lot of learning, but it won’t feel like work because the tasks are so engaging and diverse. 

 

Now is the time to consider working as a contractor in the tech sector in New Zealand! 

To summarise, here are the reasons you should work as contractor in New Zealand: 

 

  • You can enjoy a flexible lifestyle. You get to choose the hours you want/need to work, create your own schedules, and decide when you want (and need) to work. 
  • There is a pool of job opportunities in New Zealand’s IT sector giving you more options for career growth and skills enhancement. 
  • Since New Zealand’s IT sector is entering a new era of growth despite the pandemic, more employers are starting to offer competitive pay and benefits. 
  • You can work whenever and wherever you are in the world. 
  • More and more contractors in New Zealand are reporting a greater sense of satisfaction in their jobs due to the freedom and flexibility offered by contracting. 

 

Conclusion 

Working as a contractor in New Zealand’s IT industry has many perks! If money is your driving factor, then contracting will not disappoint. But if it’s the type of work that inspires you or the freedom to choose your own direction, then you’ll not be short of options either!  

 

It’s all about how you want to live and how much control you want over your life—being a contractor in New Zealand’s thriving tech sector can help make that happen. 

 

Visit Recruit IT’s website if you want to know how you can start your contractor journey in New Zealand’s tech industry today! 



27 Mar, 2024
Entering the job market after many years can be a daunting task, especially in the fast-paced world of IT and Technology. With advancements happening at breakneck speed, it is understandable to feel overwhelmed when suddenly thrown into starting your job search journey anew. However, there are simple steps you can take to get you started, ease the transition, and help you in landing your new dream job. At Recruit I.T., we've seen many experienced candidates successfully navigate this path, and we're here to share some valuable advice with you. 1. Revamp Your CV Your CV is your ticket to securing interviews, so it is crucial to ensure it’s up-to-date and tailored to the roles you are applying for. If yours is still in typewritten format and doesn’t include what you’ve been up to for the last 10 years, now is the time to get it updated. Ensure it includes your most recent and relevant roles, delete your high school work experience, and highlight your relevant experience, skills, and achievements prominently, focusing on how they align with the requirements of the positions you're targeting. If you are unsure where to start, collaborating with a specialised recruiter like Recruit I.T. can provide valuable insights and guidance in crafting a compelling resume. 2. Leverage Your Network Don't underestimate the power of networking, especially in the tight-knit IT and Technology community in New Zealand. Reach out to former colleagues, mentors, clients, and industry connections to let them know you're actively seeking opportunities. Attend industry events, meetups, and conferences to expand your network further. Many job opportunities are filled through referrals, so make sure to stay connected and keep your network informed about your job search. 3. Explore Both General and Specialised Job Boards You may have found your first job via a newspaper classified, but times have changed! While general online job boards like Seek and Trade Me, as well as LinkedIn Jobs are a good starting point, consider exploring specialised job boards focused specifically on IT and Technology roles, and register with a relevant recruitment agency like Recruit I.T. as specialised platforms like our website job board cater to this niche market, offering a curated selection of job openings tailored to your expertise. By targeting your search on these platforms, you increase your chances of finding roles that align with your skills and career goals. 4. Prepare for Interviews Brush up on your interview skills to ensure you make a strong impression during the selection process. Research the company and the role thoroughly, familiarising yourself with STAR and behavioural-based interview techniques (there is lots of info online!), practising common interview questions, and preparing examples that highlight your abilities and experiences. Additionally, familiarise yourself with the latest industry trends and developments to demonstrate your awareness and relevance in the field. It also won’t hurt to review and brush up on your verbal and numerical reasoning skills – once again, there are lots of free resources online to help you practise these types of tests/exercises. 5. Update Your Skills The IT and Technology landscape evolves rapidly, with new technologies and methodologies emerging regularly. Whilst you’ve developed your abilities on the job, do take the time to update your skills and knowledge with formal certifications and training to remain competitive in the market. Consider enrolling in courses, attending workshops, or pursuing certifications relevant to your field. Not only does this demonstrate your commitment to growth, but it also enhances your attractiveness to potential employers. 6. Be Flexible and Open-Minded The job market can be unpredictable, so it's essential to remain flexible and open-minded throughout your job search. Be willing to consider different roles, industries, or a short-term contract opportunity that may not align precisely with your previous experience. Embrace new challenges and opportunities for growth, as they can lead to unexpected career advancements and personal fulfilment. 7. Seek Guidance from Experts Navigating the job market alone can be overwhelming, especially after being out of the game for some time. In many cases, if your position has been made redundant, your organisation may provide outplacement services to offer help with CV crafting, interview prep, job search, practise testing and in some instances will also provide free access to training platforms. Consider seeking guidance from experienced specialised recruiters like our Recruit I.T. consultants. Our team possesses in-depth knowledge of the IT and Technology industries, along with extensive networks and resources to support your job search journey. From resume optimisation to interview preparation, we can provide valuable assistance every step of the way. Utilise all the free and skilled help you can access! 8. Embrace Your Experience and Life Skills It's easy to feel apprehensive about re-entering the job market after a long tenure with a single company or a prolonged absence, but remember to embrace the wealth of experience and life skills you've accumulated over the years. Your past successes, whether in your career or personal life, have equipped you with valuable insights, problem-solving abilities, and resilience that will be sought-after and appreciated by employers. While you may not have a recent job application or job hunt history, your track-record speaks volumes about your capabilities and adaptability. Have confidence in your abilities, and don't underestimate the value you bring to the table. Highlight your accomplishments and transferable skills during interviews, showcasing how they make you an asset to any organisation. By owning your experience and life skills, you can instill trust and credibility in potential employers, setting yourself apart from other candidates in the competitive job market. Embarking on a job search journey after many years can be a challenging yet rewarding experience. By revamping your resume, leveraging your network, exploring job boards, preparing for interviews, updating your skills, remaining flexible, seeking guidance from experts, and remaining confident in your experience and skills, you can increase your chances of success in the competitive New Zealand job market. Remember, you are not alone in this journey, and with the right support and resources, you will find your next opportunity. Our team are always happy to shout the coffee and provide some expert friendly and constructive advice to help you get started on your job hunt, so reach out anytime!
By Kaleb Leeming 11 Mar, 2024
Field at Present: From a Director’s Perspective Generally, we have seen a slow start to the year, continuing the trend we saw in the latter half of 2023. Despite feedback from the market that suggested a stronger bounce back, we have yet to see this in the market at present. There are pockets of activity - primarily back-fills to existing hires. As we gear towards the backend of the government’s 100-day plan, we should see the firming up of new projects and programmes, which will likely require capability to deliver these pieces of work. Unfortunately, we are still seeing organisations across a range of industries forced into making rounds of redundancies and other operational cuts or changes to help them operate more leanly during challenging times, and we’ve even seen this in the recruitment industry itself.
By Kaleb Leeming 14 Feb, 2024
With the dynamic business landscape, many companies are embracing flexibility and adaptability as they navigate the ever-changing market. As someone who has worked in the technology and recruitment sector for a while, I’ve come across a common misconception that I’d like to address: the perception that contractors are significantly more expensive than permanent employees. I'd like to give light to the true cost of hiring a contractor and explore why it might be more budget-friendly than you think. Let’s start by acknowledging the elephant in the room – the hourly rate. It’s no secret that contractors often come with an hourly rate that seems higher than what you’d pay a permanent employee. But here’s the thing: an employee salary is just the tip of the iceberg. When you hire an employee, there’s a whole set of additional costs and overheads that can significantly impact on your bottom line. Let’s break them down: 1. ACC (Accident Compensation Corporation) When you employ a permanent employee, you’re obliged to contribute to ACC levies. These can add up and represent a substantial ongoing cost to your business. Contractors, on the other hand, handle their own ACC payments, freeing you from this financial burden. As I write this it sits at approx. $0.63 per $100 of payroll. Example being, a $100K Salary = $630 per annum. 2. Kiwisaver Permanent employees are entitled to Kiwisaver contributions from their employers. While it’s a great benefit for them, it’s an added cost for your business. Contractors manage their own retirement savings, releasing you from this expense. At the minimum contribution of 3% that is $3,000 based on a salary of $100,000 per annum. 3. Training and Development Investing in the professional growth of your employees is essential. However, it can be costly and time-consuming. Contractors typically bring their existing skills and experience to the table, minimising the need for extensive initial training and ongoing development programs. Various benchmarks have this between 1% - 5% of an individual’s salary. Based on a $100,000 per annum this could be between $1,000 - $5,000 per annum. 4. Fringe Benefit Tax Providing certain benefits to your employees can trigger fringe benefit tax liabilities. Contractors are not subject to this tax, which means you can offer perks without worrying about additional financial implications. 5. Benefits Permanent employees often receive benefits such as health insurance, paid annual leave, and more. While these are important for staff retention, they can substantially increase your personnel expenses. On the other hand, contractors manage their own benefits and extras, giving you more predictability in your budget. 6. Insurance A business is responsible for looking after professional indemnity and public liability insurance which cover their permanent employees. On the flip side, contractors typically have their own insurance coverage, reducing your insurance-related costs. 7. Overheads Beyond the salary, permanent employees come with a host of overheads like office space, equipment, and administrative support. Contractors usually operate independently, sparing you from these additional expenses. 8. Productivity It is not as simple as multiplying a contractor’s rate by the number of hours in a week, and then extrapolating that out for the year. They only get paid for the hours they work, which doesn’t include any annual leave, sick leave, or public holidays. You only pay them based on what the hours they actually worked. So, what’s the bottom line? Hiring contractors can be a cost-effective choice when you consider the bigger picture. While the hourly rate may seem higher, it’s essential to factor in the myriad of savings associated with not having to manage all the costs and overheads that come with permanent employees. Don’t get me wrong – permanent employees are valuable assets to any organisation. They bring stability, commitment, IP retention, and a sense of belonging to your team. But the key is understanding the differences between contractors and permanent employees and leveraging them to your advantage. Think of hiring contractors as a strategic move that provides the flexibility to scale your workforce up or down as needed, without long-term financial commitments. It’s not about one being better than the other; it’s about making informed choices that align with your business objectives. So, the next time you consider bringing in a contractor, remember the true cost isn’t just about the hourly rate- it’s about the holistic value they bring to your organisation.
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