This typically reduces overall wages somewhat but increases income stability. They may also be paid in between assignments, placing the burden of finding new work for the consultant onto the agency. Consultants, both those working independently and those working for an agency or service generally earn higher wages than their W-2 counterparts. In return for this advantage, however, comes the likelihood of less favorable non-wage benefits, like medical coverage or retirement savings plans. While these non-wage benefits are critical to some employees, others gladly exchange these options for higher wages.
Consultants generally learn more new skills.
Consultants are often called upon to complete work that is either too complicated or specialized for companies to complete themselves, or that is critical and needs to be finished quickly. Either way, the consultant is often in a great position to gain hot new skills more rapidly than direct employees may be. Permanent employees, however, may be more likely to truly become experts in a single area within a company. This expertise leads to greater job satisfaction for some employees, and may increase an employee's status and importance within a company, an important distinction when job cuts arrive. Some consultants do not have payroll taxes deducted from their paychecks.