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Contractor/consultant vs principal consultant

The differences between contractor/consultants and principal consultants can be seen in a few details. Each job has different responsibilities and duties. Additionally, a principal consultant has an average salary of $116,478, which is higher than the $84,811 average annual salary of a contractor/consultant.

The top three skills for a contractor/consultant include healthcare, post implementation and data analysis. The most important skills for a principal consultant are cloud, business development, and C #.

Contractor/consultant vs principal consultant overview

Contractor/ConsultantPrincipal Consultant
Yearly salary$84,811$116,478
Hourly rate$40.77$56.00
Growth rate11%11%
Number of jobs64,573143,753
Job satisfaction5-
Most common degreeBachelor's Degree, 64%Bachelor's Degree, 68%
Average age4444
Years of experience--

What does a contractor/consultant do?

A contractor is a self-employed businessperson who agrees to work for a fixed price. His/her job involves the evaluation of clients' needs and actual performance of work. On the other hand, a consultant is a skilled independent businessperson who provides expert teaching and training in a specific market by assisting existing staff for the improvement of operations, problem-solving, and development of strategies. His/her role is to assess clients' needs and provide expert advice and opinion. However, both individuals are not employees, since they came from outside of the organization to perform such services.

What does a principal consultant do?

A principal consultant is responsible for evaluating business' needs and opportunities, identifying potential leads to create project proposals, and maintaining strong business relationships that would generate revenues and increase the organization's profitability. Principal consultants must be up-to-date with the current market trends to ensure that the business adapts to the industry's changes. They also initiate new product development to expand its brand image, working closely with the marketing team for marketing strategies and promotions.

Contractor/consultant vs principal consultant salary

Contractor/consultants and principal consultants have different pay scales, as shown below.

Contractor/ConsultantPrincipal Consultant
Average salary$84,811$116,478
Salary rangeBetween $58,000 And $123,000Between $90,000 And $150,000
Highest paying CityBoston, MASan Francisco, CA
Highest paying stateNew JerseyOregon
Best paying companyCernerPure Storage
Best paying industryTechnologyFinance

Differences between contractor/consultant and principal consultant education

There are a few differences between a contractor/consultant and a principal consultant in terms of educational background:

Contractor/ConsultantPrincipal Consultant
Most common degreeBachelor's Degree, 64%Bachelor's Degree, 68%
Most common majorBusinessBusiness
Most common collegeWestern Carolina UniversityWestern Carolina University

Contractor/consultant vs principal consultant demographics

Here are the differences between contractor/consultants' and principal consultants' demographics:

Contractor/ConsultantPrincipal Consultant
Average age4444
Gender ratioMale, 66.2% Female, 33.8%Male, 75.8% Female, 24.2%
Race ratioBlack or African American, 6.4% Unknown, 4.6% Hispanic or Latino, 9.4% Asian, 8.8% White, 70.4% American Indian and Alaska Native, 0.4%Black or African American, 6.4% Unknown, 4.6% Hispanic or Latino, 9.4% Asian, 8.8% White, 70.4% American Indian and Alaska Native, 0.4%
LGBT Percentage11%11%

Differences between contractor/consultant and principal consultant duties and responsibilities

Contractor/consultant example responsibilities.

  • Manage design and development of cloud-base billing application for streamlining payroll and invoicing, as well as offering real-time business analytics.
  • Assist PMO in defining project scope, task and budget, collaborating closely with developers.
  • Bill and provide appropriate documentation to submit reimbursement for services to appropriate insurance to include Medicaid, Medicare, etc.
  • Motivate and ensure SME team member engagement in projects.
  • Provide Linux server setup, documentation, and internal support.
  • Develop and implement SQL store procedures and DTS packages to process client billing data.
  • Show more

Principal consultant example responsibilities.

  • Manage project risks and issues throughout the SDLC phases, report project/program statuses to steering committee along with financial information.
  • Provide PMO office support including improving governance processes to achieve expect results.
  • Manage numerous engagements that are either custom development or package software (ERP) implementations and integration.
  • Project leadership, strategy and health information management consulting services to healthcare and manage care organizations and health information technology companies.
  • Design database and business objects using XML schema.
  • Create XMLType view to generate xml output from a SQL query.
  • Show more

Contractor/consultant vs principal consultant skills

Common contractor/consultant skills
  • Healthcare, 30%
  • Post Implementation, 25%
  • Data Analysis, 7%
  • Project Management, 5%
  • Financial Statements, 3%
  • Medicaid, 3%
Common principal consultant skills
  • Cloud, 11%
  • Business Development, 10%
  • C #, 7%
  • Customer Satisfaction, 6%
  • Java, 5%
  • Project Management, 4%

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