What’s the difference between freelance and contract?
Kristina Gerdov • May 1, 2024
Your guide to shorter term contracts in the marketing world.
Kicking off a job search can be overwhelming, particularly if you’re thinking of a shorter-term contract and not sure where to start. You might see a number of different roles advertised like ‘Freelance’ or ‘contract’ or ‘fixed-term’ and unsure what the difference is. You’re likely not the only one.
We’re here to take the guess work out of it for you and have outlined some key differences below to arm you with the knowledge you need to consider before you hit apply.
Freelance
The term “freelance” often gets used when someone works for themselves or for a number of different clients over a period. Often used in creative industries and is attractive for it’s uber flexibility and ability to work short-term contracts with varying hours.
Why Freelance?
- Freelancing offers the opportunity to engage in various short-term agreements and experience different styles of companies. You might work with one company for 6 weeks on a project, then return again 6 months down the line. Being a freelancer gives you that flexibility to pick and choose the length of the project, depending on the work required and what suits your lifestyle at the time.
- A job might be briefed as a freelance contract when there is an immediate need for someone to join the team, but it’s not determined exactly how long they will be needed for. This could be due to short-term holiday cover, sick leave or a specific project that needs additional resource. The role might start out as a short-term agreement, e.g. 2 month freelance contract but then extend longer as needs and requirements change. It’s not uncommon for contracts to extend several times, so don’t let the initial length deter you.
- Typically, there is a very quick hiring process for a freelance role, with hiring managers often seeking candidates that are available immediately or within a short-time frame.
- Freelance roles are usually created with a very specific need in mind, which gives you a solid understanding of the type of projects you will work on, allowing for a very clear hiring process centred around skills and ability to hit the ground running with minimal training required.
- As a marketer, working in a freelance capacity gives you opportunity to work on a number of different projects, gain varied experience and build a diverse portfolio of work. It could be a way to try out different styles of companies, ahead of determining your next long-term move, or you might decide you like the lifestyle offered and choose to freelance longer term. Many agency suits and marketers build a career through freelancing and become highly regarded in the industry for being a capable pair of hands with fresh ideas and perspectives.
- Freelancing is also a great opportunity for International Talent to gain local market experience in Australia when first arriving and also works well with any restrictions on visas, like only being able to work with one company for up to 6 months on the WHV.
- A freelance contract is a great opportunity for you to prove yourself to an employer and if you both agree that it’s a great fit and an opportunity becomes available full-time, you may be offered a full-time contract, often known as “temp to perm”.
How does it work?
- Freelancers can choose to use an ABN and invoice clients directly or go on payroll through their client or recruiter that has made the introduction.
- When using an ABN, you manage your own income, including tax, super and GST. It only takes a few minutes to set yourself up as a sole trader through the online application so you can be set up fairly quickly!
- In the marketing industry it’s common to see freelance rates outlined as a Day Rate. The rate is usually agreed with the understanding that you get paid for the days worked, without additional pay for sick leave, holiday etc so this is usually factored into the agreed rate.
- When it comes to notice period, a minimum of 24-48 hours is usually required but 1-2 weeks is more common. That being said, if you’ve committed to a short-term contract, it’s highly recommended that you complete the project or agreed timeframe before moving on to any new work, in order to protect your reputation and do the right thing by the company.
Fixed-Term Contract
A contract role is typically a longer-term agreement between both the client and candidate, where you become an employee of the organisation for a set period of time. Commonly we see these as 6-12 months in length, to cover a maternity leave or specific project need.
Why contract?
- When taking on a fixed-term contract, you get the benefits of being an employee of the company, often with the same benefits of permanent staff, just pro-rata to the contract length e.g. annual leave, sick leave etc.
- Being longer in length, e.g. usually greater than 6 months, there is a level of job security that doesn’t come with freelance that is enjoyed by many candidates. A standard notice period applies if either party decides to end the contract ahead of the initially agreed end date.
- The hiring process is usually more intensive than a freelance contract but still much shorter and streamlined than a permanent hire, again those candidates that have shorter notice periods being highly sought after.
- The talent pool of competition is usually smaller with contract roles, as those that are already in permanent positions are less likely to apply for a role that doesn’t offer the same longer-term career opportunities. This means you might have a better chance of securing the role than if it were a permanent opportunity.
How does it work?
- When securing a fixed-term contract, you’ll receive an employment contract just like you would if it were a permanent position, however, it will include the details of the contract length and entitlements.
- You will be required to give notice when you’re looking to leave, anywhere from two weeks to two months, depending on your role and level – or what may have been agreed upon in your contract when you started.
- If you get the opportunity to secure a new permanent opportunity with the organisation following this, you’ll then sign a new permanent contract.
- There are limitations (https://www.fairwork.gov.au/starting-employment/types-of-employees/fixed-term-contract-employees) for how long a fixed term contract can extend or be renewed, usually 2 years and not renewed more than once.
If you’re ready to start the job search for your next freelance or contract role, visit our Job Search page for our latest roles where you can filter by work type. Please note, due to the quick turnaround times of freelance briefs, we often fill roles with our network without advertising the role, so if you’re on the lookout, please do reach out and submit your CV today.
I recently had the pleasure of attending the B&T 30 Under 30 awards and had the chance to meet some incredibly talented rising stars in the industry. One standout was Aoife Lehane, a candidate we’ve had the privilege of working with, who was nominated and shortlisted in the Account Management category. Honestly, I wasn’t surprised at all—anyone who meets Aoife can immediately see how ambitious, creatively driven, and sharp she is. Here’s a look at her B&T 30 Under 30 experience and a glimpse into her impressive career: From starting your career in Dublin, to moving to Sydney and landing a fantastic role through iknowho at one of Australia’s top agencies, you’ve had an amazing career to date. Can you tell us a little more about your background? I have learned from some extremely talented people throughout my career to date and count myself very lucky to have had been afforded some amazing opportunities. I started my career at a boutique indie agency in Ireland where I got invaluable hands-on experience running my own accounts and pitching for new business quite early on. From here, I made the move to Droga5 in Dublin working on some of the agency’s largest clients. Whilst at Droga5, I went through a career crossroads moment where I was debating becoming a planner and actually spent 6 months working in the strategy department which I absolutely loved. This stint in strategy taught me invaluable skills that I use in my role everyday. Ultimately, I decided to stay in account management (if you hadn’t guessed!) as I couldn’t shake the curiosity of seeing the whole process come to life and the ability to really influence the work in all phases, beyond just what I touched in strat. It sounds cliché but I’m also a real people person and I thrive off building relationships. In my opinion, account management are the real beating heart of an agency, and I thrive in that role and the exposure it gives you to all areas of the business. When I decided that I was moving to Sydney I reached out to Riza at iknowho whilst still in Ireland. Not knowing the Australian market was extremely daunting but her knowledge and experience put me completely at ease. She really understood me, my ambitions and the type of agency I wanted to work in for the next chapter in my career and I couldn’t be happier with how it worked out. The calibre of talent in the mix was extremely high this year. How did it feel to be a finalist at this years’ B&T 30 under 30? And what inspired you to participate? I feel so incredibly grateful to have been up there with some amazing individuals who have achieved so much in their careers already. Personally, it was such a lovely moment to be recognised amongst such a talented group of people who have come from different backgrounds and corners of the globe. Having diversity in career paths and experience is so important for our industry to bring fresh perspectives and thinking – it only benefits the work, the people who make it and the people who see it. It was actually this time last year, seeing the finalists and the stories from past winners that inspired me to enter - I turn 30 this year so I figured if not now, when! What did you learn throughout the process of applying and what advice would you give to others looking to participate next year? Also, how did your agency help to support you in the process? I really enjoyed the process of applying and the moment of reflection it gave me on my career to date. So often I’m looking ahead to the next thing and don’t take the time to reflect on what I have achieved already. As someone who can be very hard on themselves, it was a really eye-opening and rewarding process to take part in. The 3 pieces of advice I would give to others looking to participate next year would be: 1: Think about the narrative you want to land from the start and how you weave that narrative through your response to the questions and constantly re-enforcing your point. 2: For me, it helped to get everything down on paper and then treat it as a bit of a creative review to condense and tighten (my first draft was 9 minutes long!) 3: Lean on those around you for their advice and point of view, you can get stuck in your own head when it comes to the submission, so it’s good to have those around you to offer that fresh perspective. I work with some very talented people who were extremely generous with their time not only offering me their advice and feedback but also their videography and editing skills to give my submission that final polish – it takes a village! There is no doubt that being a finalist helps elevate your profile, what other benefits do you see from being shortlisted and are there any other awards in your sights for the future? Not being from here it can be a little bit harder to “break into the industry” and make a name for yourself, as an expat I have found it hugely beneficial in that respect. Even this opportunity from the team at iknowho to do this profile piece has been really valuable and a great privilege that I don’t take for granted. In terms of personal awards, there’s nothing specific that I have my sights set on in the immediate, but I am open to whatever opportunities come my way. Forbes 30U30 would be a good one but I would want to get busy! What’s next for you, where do you see yourself in five years? Anyone who knows me has heard me say I want to be on that stage in Cannes.. so hopefully that will have happened. With the world we’re living in right now and the constant conversation around the value of creativity (which I believe is not only monetary, but also the value it provides to society) I’m driven by the opportunity to create something that people really connect with and makes a lasting impression in the world.. whether that’s as simple as just making people smile or changing societal behaviour for good - the pursuit of that is what drives me. I’m energised by working with likeminded people who share my ambition but not always a similar point of view. I love the process of sharing those different points of views and different ways of thinking and what brings to fruition. That to me is what makes the industry we work in so interesting and one I love being a part of. Ultimately, I would love to be in a leadership role in an agency where I have the ability to make a real impact and influence the direction for the future of the industry. -- Thank you so much, Aoife, for sharing your journey, insights, and advice. Your passion and drive are truly inspiring, and we have no doubt you’ll continue to make waves in the industry. We can’t wait to see what’s next for you! If you're looking for your next role within the junior-mid levels across agency or the perfect candidate to add to your team get in touch with Riza today!
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