"We want someone who is looking for a home."
"We are a family here."
If a recruiter says this to you, run. They are trying to underpay you.
The debate between Contract vs. Full-Time (FTE) is usually framed as "Risk vs. Stability." That is nonsense. In 2025, there is no such thing as stability. You can be laid off from your "stable" full-time job via a Zoom call on a Tuesday morning.
The only difference is that the contractor saw it coming and got paid 50% more for the trouble.
I’ve been on both sides. I’ve been the FTE waiting for a 3% raise that never came. I’ve been the contractor billing $150/hour to fix a div. Here is the brutal truth about which path you should take.
The Real Numbers
Let’s look at the math. This is what HR doesn't want you to see.
| Metric | Full-Time Employee (The "Safe" Choice) | Contractor (The Mercenary) |
|---|---|---|
| Salary | $120,000 | $180,000 ($90/hr) |
| Taxes | ~25% (W2) | ~15% (LLC Write-offs) |
| Benefits | "Free" (but actually cost you $20k in salary) | Pay $500/mo yourself |
| Severance | Maybe 2 weeks if you're lucky | $0 (But you have cash in the bank) |
| Politics | 10/10 (Performance Reviews, Town Halls) | 2/10 (Do work, get paid) |
1. The Full-Time Trap: The "Golden Handcuffs"
Full-time employment is designed to make you comfortable, not rich. They give you perks like "Unlimited PTO" (which you never take) and "Stock Options" (which are usually worthless) to keep you docile.
The Scenario
You work late every night for six months to ship a feature. You save the company $2 million. At your annual review, your manager says, "Great job! Here is a 4% cost-of-living adjustment." Meanwhile, inflation is 5%. You effectively took a pay cut. You can't leave because your unvested stock options vest in two years. You are trapped.
The Old Way vs. The New Way
- 2021: Tech companies hoarded talent. You could rest and vest.
- 2025: Companies are lean. If you aren't generating revenue, you are a liability. The "family" will fire you to hit their Q4 numbers.
2. The Contractor Life: The Mercenary Mindset
Contracting is honest. You trade time for money. No politics. No "culture fit" interviews. You come in, you kill the dragon, you take the gold, you leave.
The Scenario
A client needs a React migration done yesterday. They are desperate. They don't care about your "5-year goals." They care if you can code. You quote them $125/hour. They say yes. You work 40 hours a week. You bill $5,000 a week. You finish the project in 3 months. You made $60,000. You take the next month off to go to Japan.
The Old Way vs. The New Way
- 2021: Contractors were seen as "second-class citizens."
- 2025: Contractors are the elite. Companies prefer them because they don't have to pay for health insurance or deal with firing lawsuits.
3. The "Benefits" Myth
People stay in FTE roles for health insurance. This is bad math.
The Scenario
You take a $100k job because it has "great benefits." The health plan is worth maybe $15k a year. You turn down a contract role paying $150k because "it has no benefits." You just paid $35,000 for health insurance. ($150k - $100k - $15k = $35k difference). You could have bought a Platinum plan on the marketplace for $6k and pocketed the rest.
5 Steps to Becoming a High-Paid Mercenary
If you want to escape the rat race, here is the exit plan.
- Incorporate: Do not work as a sole proprietor. Form an LLC. It costs $200. Now you can write off your laptop, your internet, your home office, and your "business lunches."
- Build a "F*ck You" Fund: You need 6 months of cash in the bank. This gives you the power to say "no" to bad clients. If you need the money, you have no leverage.
- Niche Down: "Java Developer" is a commodity. "Java Developer who specializes in high-frequency trading platforms" is a luxury good. Charge accordingly.
- Get a Good Accountant: A good CPA will save you more money than you pay them. They will find deductions you didn't know existed.
- Network with Agencies: Don't just apply on Indeed. Talk to recruiters at staffing agencies (like LeonIT). They have the contracts that aren't posted publicly. They do the sales; you do the work.
See our guide on Salary Negotiation
Frequently Asked Questions
But what about job security?
It doesn't exist. Ask the 200,000 tech workers laid off in 2024. The only security is your ability to find the next gig. As a contractor, you are constantly interviewing and networking. You are always ready. An FTE who hasn't interviewed in 5 years is the most vulnerable person in the room.
Don't contractors get treated poorly?
Sometimes. You might not get invited to the holiday party. You might not get the company swag. Who cares? You are making 50% more money. Buy your own swag. You are there to do a job, not to make friends.
How do I handle taxes?
It’s not as scary as it sounds. You pay quarterly estimated taxes. You take 30% of every check and put it in a separate savings account. Do not touch it. At the end of the year, you pay the IRS. If you have an LLC, you can deduct expenses to lower your taxable income.
Will a gap in my resume look bad?
No. You are a consultant. "Gaps" are just "time between projects." You frame it as, "I successfully completed the project and took time to upskill before the next engagement." It looks professional, not desperate.