IT contractors want more money but less hours

Two thirds of IT contractors expect to earn more in 2006 than in the previous year but over a half want to spend less time doing so, according to a survey carried out by JSA, the specialist accountants for IT contractors.

However the survey, which was carried out among over 1100 IT contractors, shows that over 90 per cent of respondents are happy working as contractors and only 17.5 per cent thought they were likely to return to PAYE employment in 2006.

JSA has initiated an annual Contractor Expectation Survey to gauge the ambitions and plans of IT specialists for the coming year. Over 1100 replies were received. Among the key findings are:

• 66.5 per cent expect their earnings to rise in 2006, while 28.2 per cent believe they will rise by more than 15 per cent.
  
• 48.3 per cent think the contract market will remain static this year while 11.2% believe it will actually shrink
  
• 52.4 per cent hope to work less hours in 2006
  
• Of these, 50.4 per cent want more free time to spend with their families, 37.16 per cent would like to have more time to pursue hobbies/interests while 12 per cent say they feel too stressed with their current work load.
  
• 81.5 per cent would like to find more challenging work
  
• Only 17.5 per cent believe they are likely to return to full time PAYE employment this year
  
• 92.2 per cent enjoyed their work as contractors.

JSA Chief Executive Barry Roback, said: "These results reveal a certain ambiguity in the ambitions of IT contractors. It is heartening that so many are happy to continue to work as contractors, but clearly the majority feel that they would like to spend less time at work and more time with their families or leisure pursuits. This is a natural ambition, but perhaps sits uneasily with the fact that nearly one third hope to earn 15% more than last year in a market which many perceive to be static or shrinking."

However Mr Roback noted that, despite the reservations of respondents, the market for IT contractors appears to be strengthening and points out that JSA's last salary survey in 2005 showed an average increase in earnings of ten per cent on the previous year with an average annualised contract value of £56,540 compared with 2004.

He added: "There is no doubt that the increasingly business-like approach that IT professionals, agencies and end users are taking towards the management of contracting has contributed to a greater all round satisfaction and should lead to strengthening pay rates. Obviously working as a contractor does bring some additional pressures and stresses and issues of work/life balance still need to be addressed.

"Nonetheless the survey shows that contractors still expect to receive greater rewards, even if the market is not growing, and at the same time hope for more challenging work. It will be very interesting to see whether 2006 meets their ambitions and expectations!"