As an IT professional you have roughly three ways to work: in permanent employment, as a freelancer, or via secondment. That middle option, secondment, is often mentioned but rarely honestly explained. What does it exactly involve, and is it for you?
In this article I give an honest weighing of the pros and cons of secondment as an IT professional. No sales pitch, because secondment does not suit everyone. I line up the plus and minus points, so you can decide for yourself whether it fits your situation.
This blog is for IT professionals torn between secondment, freelancing and employment, who want an honest picture.
Honest disclosure: I place independent IT professionals and do not do secondment myself. So I have no interest in secondment, and that makes it easier to look at it neutrally. I honestly name when secondment is actually a good choice.
What is secondment exactly?
With secondment you are employed by a secondment agency, which then lends you out to clients. So you have an employer, the agency, but you work at changing clients on different assignments. It is an in-between form: more variety than permanent employment, more security than freelancing.
That in-between position is precisely why secondment is attractive for some IT professionals and not for others. You combine a permanent contract with the variety of different assignments. Whether that is an advantage or a compromise depends on what you seek in your work and your security.
What are the advantages of secondment?
The biggest advantage is security with variety. You have a fixed salary, continued pay during illness, pension build-up and holiday pay, just like in employment, but you work at different clients on varied projects. That way you quickly build broad experience without the uncertainty of freelancing.
A few advantages in a row:
- Fixed income and security, also between assignments
- Continued pay during illness, pension and holiday pay arranged
- Much variety and broad experience at different clients
- Often training and guidance from the agency
- No own acquisition or admin as with freelancing
For those just starting or who value security but still seek variety, this is an attractive combination. You get the advantages of an employer with more variation than a fixed job at one employer offers.
What are the disadvantages of secondment?
The biggest disadvantage is that you earn less than as a freelancer and have less freedom than you might think at first sight. The secondment agency keeps part of what the client pays, so your hourly return is lower than what a freelancer charges for the same work. You trade earning potential for security.
A few disadvantages to weigh:
- Lower income than as a freelancer for comparable work
- Less freedom: the agency co-determines where you end up
- You are tied to a contract with the agency, with its own terms
- Less autonomy over your assignments than a freelancer
- You depend on how well the agency finds assignments for you
These disadvantages do not make secondment bad, but it is a trade-off. You pay with earning potential and autonomy for the security you get. Whether that is worth it depends on what you find more important.
Secondment versus freelancing: what fits you?
The core of the choice: security or earning potential and freedom. Secondment gives you the security of employment with variety; freelancing gives you higher earning potential and more autonomy, but with your own risks and responsibilities. Neither is better; it depends on what fits you.
If you handle uncertainty well and want to earn maximally and be free, freelancing fits better. If you seek security and variety without the business hassle, secondment is attractive. Considering freelancing instead? Then read my honest weighing of becoming a freelancer in IT. Then you see both sides sharply side by side.
For whom is secondment the right choice?
Secondment suits IT professionals who value security but do not want to be tied to one employer, and those just starting who want to build broad experience with guidance. Also for those who find the step to freelancing (still) too daunting, secondment is a good intermediate step that offers variety without own risk.
Less suitable is it for those who want to earn maximally, want full autonomy over their assignments, and handle the uncertainty of freelancing well. For that group, secondment leaves money and freedom on the table. So it is not a matter of good or bad, but of which trade-off between security, money and freedom fits you.
Frequently asked questions about secondment as an IT professional
Do I earn more with secondment or as a freelancer?
Usually more as a freelancer. With secondment the agency keeps part of what the client pays, and you get a fixed salary that is lower than what a freelancer invoices. On the other hand, with secondment you get security and continued pay that a freelancer has to arrange and fund themselves.
Is secondment safer than freelancing?
In terms of income security, yes. You have a fixed salary, continued pay during illness and pension build-up, just like in employment. That security a freelancer carries themselves. Secondment thus removes risks that with freelancing lie with you, in exchange for a lower income and less autonomy.
Can I switch from secondment to freelancing?
Yes, and many IT professionals do. Secondment is a good way to build experience and a network, to then possibly make the step to freelancing when you have enough security and experience. Do watch the terms in your secondment contract, such as a possible non-compete or non-solicitation clause.
Do I also deal with the Dutch DBA Act with secondment?
No, not as a worker. With secondment you are employed by the agency, so you are an employee and not a freelancer. The Dutch DBA Act, which assesses disguised employment among freelancers, then plays no role for you. That is precisely one of the reasons some experience secondment as carefree.
Am I tied to the agency with secondment?
You have an employment contract with the agency, with its own terms and notice periods. As tied as a normal job, then. When signing, watch clauses like a non-compete or non-solicitation clause, which can limit your freedom on a later switch. Read your contract well and ask questions if in doubt.
Conclusion: an honest weighing between security, money and freedom
Secondment is an in-between form that combines security and variety, but you pay for it with earning potential and autonomy. It is no worse or better a choice than freelancing or employment, but a different trade-off. The question is what you weigh most heavily: security, money or freedom.
For whom is secondment the right step? For those who want security and variety without business hassle, and for those building experience. For whom not? For those who want to earn maximally and want full autonomy; then freelancing fits better, and for those seeking calm at one employer, permanent employment fits.
My advice: choose deliberately based on what you find important, not based on what others do. Secondment is a fine choice for the right person, and for another a compromise that costs money and freedom. Know the trade-off, and you choose well.
Torn between freelancing and secondment?
Considering self-employment instead of secondment, and want to spar about what fits you? Plan a no-obligation call with me. I am honest about both sides, even if secondment is the better choice for you.
Note: this article is general information. For your personal and tax situation, consult an advisor or accountant. Clauses in secondment and employment contracts can differ per agency; read your contract well.
