Sunday, November 11, 2012

Is Becoming A Contractor The New Norm?


Lavida Cooper by NASA Goddard Photo and Video
Lavida Cooper, a photo by NASA Goddard Photo and Video on Flickr.


Thirty one percent of America’s workforce is comprised of independent contractors, grown out of corporations’ needs to staff on the fly. With this trend rising, the contract model might become your most likely way of getting hired. After all, it’s easier for companies to end a contract than to terminate a coworker. Firms can successfully outsource their Account managers, Human Resource reps and IT Analysts and reap all of their successes without the obligation of paying for employee benefits and paid time off.

Does working as a contractor make sense for you? Consider these points:

Being independent puts you in the category of Subject Matter Expert. You’re in a position to offer big picture opinions of your business landscape to your client company because you’ve worked in a variety of scenarios. You’re politically neutral when you offer your expertise because, while you are completely professional, you don’t have to drink the company Koolaid. Likewise, you wont be disappointed by the typical two or three percent increase that salaried employees receive at their annual review. You can set your own rates for the duration of the contract—and it's a fact that most contractors earn more than their salaried counterparts.

Looking for job security? Create your own by being great at what you do.  Whether you are in between jobs or you’re looking for a long-term role, contracting might be the way to go if you are really good at what you do. You can charge more for your expertise since you know how to solve your client’s problems. As your paycheck increases, stash as much as you can away for rainy days in between contracts (or for taxes if you’re on a 1099). Stay connected to your network and keep your skills fresh so that you’re poised for the next contract when the current one ends.

You get to steer your own ship.  As a contractor you won’t concern yourself with which rung of the corporate ladder you sit on. Promotional opportunities won’t pervade your thoughts. Corporate politics can be observed from the sidelines. Instead, your focus is on the work itself.

What about benefits and a sense of permanence? It’s true—you won’t be paid for your sick days or vacation time, and it might be hard to carve out time off over the holidays when you’re covering for salaries employees on the team. If you contract through an agency, you may be able to earn benefits and PTO—but given the changes in healthcare benefits, you might be better off funding these for yourself.

I think the biggest concerns a contractor has are those that are focused on the work itself. Often, contractors are hired as a last ditch effort to meet business goals that the permanent staff could not achieve. If you are offered a contract gig, find out early if you’re being set up for success or a failure. Gauge if the client’s expectations for your performance are realistic or not (sell twenty new clients in three months time? You’re an Account Manager, not Houdini).

Remember that when you’re hired on a temporary basis, you are, at first, an expense to the company and not an investment. You won’t receive employee developmental goals and there's not talk of your future. You will, however, be paid well to do what you do best—the work itself. And if it goes well, you’ll be appreciated by the team and be treated well. You might even get picked up as a permanent employee later, if that's your goal.

Contract work is a career lifestyle choice with pros and cons like any other. But it’s a prevailing trend that is seeping into more workers’ lives at a rapid rate. Chances are you will need to explore this option at some point in your career trajectory.

No comments:

Post a Comment