Alex Heard, Principal Consultant, Transformation & Change, contributed this article. 

I've spent nearly a decade working in the transformation and change space, and I've lost count of how many talented professionals have told me they'd "never consider day rate contracting". When I ask why, the answers are always variations of the same misconceptions. Meanwhile, 1.1 million Australians are thriving as independent contractors – that's 7.5% of the employed workforce, according to recent ABS data. 

So, it’s time to tackle these myths head-on, because if you’re a senior professional in transformation, technology, or finance, you might be inadvertently limiting your career options based on outdated thinking. 

Myth 1: It’s Too Risky 

In my experience, this isn’t really the case. The only significant difference is the notice period. If a business changes direction or restructures, yes, contractors are often the first to be released – but permanent staff are rarely immune either. For that slight increase in risk, you’re generally paid 15–40% more. 

Here’s what I’ve observed in the market: job security is essentially an illusion these days. I’ve seen countless permanent employees caught off guard by restructures, believing their status would protect them. The difference? Contractors go in with eyes wide open, financially compensated for that transparency, and often with stronger networks built across multiple organisations that make their next move easier. 

The higher day rate isn’t just compensation for risk – it’s recognition of the value you bring. You’re brought in to solve specific problems, drive transformation projects, and deliver outcomes. That’s actually a position of strength, not vulnerability. 

Myth 2: It’ll Look Bad on My CV or Affect My Tenure 

If your recruiter has properly qualified the role and you’ve asked the right probing questions in the interview, you should have a clear sense of how long the transformation is expected to run. Most programs we work on are long-term, substantial pieces of work.  

That said, there’s also a growing appetite for short-term gigs (anywhere from two weeks to six months), including some inspiring private equity contracting opportunities. 

Australia has been slow to adopt the short-term interim contracting model that’s been standard globally for years – but that’s changing fast. A short contract is no longer viewed as a ‘career blemish’. In fact, showing you can deliver on large-scale, end-to-end programs and step into shorter assignments to turn around struggling projects demonstrates real versatility – you become a ‘Swiss Army knife’ who can adapt to whatever’s needed. Your CV becomes a showcase of complex problems solved, rather than a timeline of how long you’ve occupied various chairs. 

Myth 3: But What About Holidays, Sick Pay, and All the Permanent Perks? 

This is a fair concern, but all those factors can be built into your contractor's day rate. When calculating your rate, use this quick formula: (Day rate + 12%) × 5 × 48 = your estimated annual take-home, allowing for time off and a comfortable buffer. 

Let’s be practical about this. Yes, you’re responsible for your own leave provisions. But you’re also earning significantly more per day worked, which gives you the flexibility to take extended breaks between contracts if you choose. I’ve worked with contractors who take month-long sabbaticals between major programs – something nearly impossible in permanent roles without significant career disruption. 

When I advise candidates on negotiating day rates, I always encourage them to consider factors beyond the headline number: contract duration, portfolio value of the work, remote versus onsite requirements, and the strategic importance of the project. A shorter transformation contractor role at a high-profile organisation might justify a different rate than a twelve-month programme at a less recognisable company. 

Myth 4: There’s More Opportunity in Permanent Roles 

Not necessarily. Over the last nine years, roughly 75% of the transformation work I’ve seen has been contract-based (although right now, it’s closer to a 50/50 split). So, by ignoring contract roles, you’re still potentially missing out on exciting projects in great companies, under strong leadership, with high-performing teams. 

Each contract also becomes a networking opportunity. Whether you’re working in a transformation contractor role, a technology contract role, or a finance contract role, you’re building relationships across different organisations, industries, and leadership teams. That expanded network becomes your safety net and your springboard for future opportunities – far more valuable than climbing a single organisational ladder.

Especially in the current market, I’d strongly recommend networking and staying visible. Connect with your recruiter regularly, even if it’s just for a quick market update over the phone or a coffee to strengthen the relationship. With new candidates entering the market every week, it’s essential to keep yourself at the front of mind. 

Myth 5: I’d Rather Go Straight to Permanent 

Fair – but I’d encourage you to consider taking a ‘try before you buy’ approach. Many of our clients (and candidates) are adopting this model. Starting on a 6–12 month contract lets you test the waters before committing long-term. Even though we do most of the qualifying for you, sometimes personalities, teams, or cultures don’t click. 

A contract gives you the freedom to assess fit, enjoy the flexibility and pay benefits of contracting, and ultimately gives you more leverage when negotiating a permanent package – because the client already knows what you can deliver. 

I’ve facilitated dozens of these transitions at Allura Partners, and the conversion rate speaks for itself. When both parties have had the opportunity to work together, the permanent offer tends to be significantly stronger. As a senior contractor, you’ve proven your value, built relationships, and demonstrated cultural fit. That’s a far stronger position than hoping your interview performance translates to on-the-job success. 

The Bottom Line 

In my opinion, the contracting market for senior transformation, technology, and finance professionals has never been stronger. Day rates reflect genuine demand for specialist skills, and organisations increasingly value the flexibility and focused expertise that contractors bring. 

If you’re excited about the possibility of a senior contractor career, I’d advise you not to let outdated myths hold you back. The market isn’t slowing down, and the professionals who embrace this model are building more dynamic, financially rewarding, and fulfilling careers. 

At Allura Partners, we work closely with senior contractors and interim professionals. We understand the nuances of day-rate negotiation, contract terms, and career positioning. If you’re considering your options or want to discuss how contracting could accelerate your career trajectory, I’d be happy to have a conversation.