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What is a Grant Funded Position?

The grant-funded position is a job created by a grant or contract from an organization outside the working place but depends on the organization’s support at the funding level for the period of appointment. A grant-funded position at any organization is one that emerges since an institution funds it.

Grants are usually offered by charitable organizations, which are established by individuals who are financially buoyant to contribute to the development of society, while they also receive tax breaks. Several enterprises rely on grants, (even though they may have donors, fundraising events, and other sources of funding.)

The enterprises must assess what they’ve been given, determine their objectives, and make financial decisions. It is imperative to note that this Grant-funded job usually lasts one or two years.

Pros and Cons of Grant Funded Position for Employers

  1. Reduce your expenditures

Employment cost is usually high, and expenses are increasing massively. According to reports, companies with full-time employees anticipate spending approximately $15,000 per worker on healthcare. Nevertheless, have in mind that businesses could save up to 50% on all these costs per grant-funded worker hired.

  1. Forgo Insurance

Businesses are relieved of the burden of providing perks to grant-funded employees. These short-term contracts do not usually come with healthcare coverage, maternity benefits, or personal time off. When businesses use employment agencies, consequently those perks are provided by the agency.

The advantage of providing perks through a recruitment partner is that the employee does become an appealing package, attracting applicants with some key attributes.

  1. Test It Out Before You Acquire It

Businesses can use grant-funded employees to evaluate the market for prospective future hires without committing to full-time workers. This is advantageous not only from an employment standpoint, but also to help to eradicate the difficulties of bringing clients to make it economically sustainable in maintaining steady thresholds of personnel.

  1. You Can Possibly Add or Reduce Staff

Companies have freedom in response to changing conditions, developments, or other activities that determine workforce fluctuations. Grant-funded employees are less detrimental to established workgroups than full-time workers.

  1. Fill Provisional Labor Shortages

Whenever an employee takes maternity leave, sabbatical, or even a short break, hiring a temporary worker is ideal. This enables managers to maintain a steady size of the workforce, which is crucial for small enterprises whose capabilities are frequently strained thin.

  1. You Will Still  Be Accountable

You are liable if a grant-funded employee is wounded on the task. Employee’s compensation insurance is known to cover full-time workers. For instance, if the worker is injured, the insurance will pay and waives the punishment for the damage done.

But not for grant-funded employees, who can file suit and receive damages from your business since they are more or less independent contractors.

  1. You Can’t Fire at Will

Numerous states have laid back at-will laws that give businesses so much leeway in firing workers for various reasons. However, the grant-funded position is controlled by a grant agreement, which may impose restrictions on your ability to discharge at will.

  1. It’s a Spiral Motion

It is essential to take into account how much workers may impact your value system and organizational milestones. How much tension would it put on your teams to get individuals up and keep them running if you utilize grant-funded workers for a series of projects?

  1. Less Power

Grant-funded employees, like independent contractors, have the option to leave if the connection isn’t ideal. Grant-funded employees have more independence than full-time employees, which may frustrate business owners who want to micromanage deadlines.

  1. Increase the Likelihood of Audits

According to experts, the Internal Revenue Service (IRS) desires more full-time employees for the tax advantages it provides. They also imply that enlisting too many grant-funded workers may result in an audit.

Pros and Cons of Grant-Funded Position for Employees

  1. Enhanced Technical and Professional Experience

This position allows you to broaden your experience and work in a range of industries. It gives you the opportunity to expand your knowledge, and also learn new skills in other industries. You can decide which abilities you want to advance in other industries, permitting you to improve your CV for employment. It could also be used as a component of your tale when describing a job disparity to a prospective employer.

  1. More Money

Grant-funded employees receive a higher salary just like independent contractors. Even though you may not receive any economic benefits or perks, you will still be comfortable financially. A contractor’s take-home compensation is usually twice (or perhaps more than twice) of a full-time worker in a comparable role.

  1. Freedom to Jump Ship

A grant-funded position is an ideal method for a more seasoned worker to update their employable skills. It is ideal for a person who seeks to acquire more experiences as feasible while figuring out their vocation. This is the only rationale to have a string of one-year job roles on your curriculum vitae. Grant-funded positions also allow you to change jobs with confidence.


  1. No Advancement

Grant-funded positions are temporary employees who are introduced when a company requires additional competence to complete a task.

There would be an opportunity to get better in these positions, except if the placement is particularly temp-to-hire, the employee remains in the same position with the business. Several professionals have been stuck in the same situation for many years due to the extension of the grant.

2. No Perks

Although you may choose to enjoy time out with the team, if you would like to be compensated for your job, you have to forget about enjoying a day off to deal with a sore head. Aside from that, there are still no 401(k) retirement benefits.

One benefit many employees are unaware of is that full-time employees have one-half of their social security and medicare premiums reimbursed for by their organizations. Grant-funded workers just like Independent contractors are 100% accountable for these payments.

3. It Is Difficult To Integrate Into The Culture

Grant-funded workers may feel excluded by full-time workers into an “inherently unequal” employee pool at times. This could make it difficult to believe that you are a member of a group in a mission-driven establishment. Nevertheless, it should also be acknowledged that numerous businesses do an excellent job of overseeing their grant-funded workers.


Work that only demands 25 hours per week for 8 months may be ideal for certain individuals. Most people require longer employment for at least 30 or 40 hours per week, and also need perks. The duration of well-funded positions may not be the issue, but the lack of benefits.

So before considering this choice, ensure that you weigh the pros and cons. This is because benefits are seldom provided for grant-funded positions.