Contracting: Reality in the Current State of Things

I remember reading some years back that "in the 21st century, many people would be free agents, contractors," but I didn't really believe it.  There are so many reasons for hiring a person, none the least of which is ownership and productivity.  However, after being a contractor for just about a year, I'm not dismissing that as an option anymore.....but then again, I wonder if I can make a living with multiple income streams, some of which involve gardening and woodworking.

I've spent most of this past year in a focused, informed, network-savvy job search.  I've done some presentations at professional groups, had some interviews, even 2nd and 3rd interviews, but no offers.  In the past, I've averaged a couple of calls a week, and on a good week, I would have two interviews with two separate companies.  Not so at the present time.

It's not that I don't like my present contracting situation--it honestly doesn't pay too badly.  It's just that there are no benefits--especially health insurance--and that puts a damper on things. (Disclaimer:  I do not support the socialized medicine that our current administration is pushing.  When a high-ranking Canadian official comes to the US for surgery that he could get "free" in Canada, that says a lot about the highly-touted Canadian system and others like it.)  So, a major concern is health insurance, and if you've had to buy insurance privately, you know why that is an issue.  If you haven't, pray that you never have to, and have an AED nearby when they tell you the rates.


The other thing about contracting is that no matter how involved you get in the business, no matter how great your co-workers are about making you feel at home, you will always be a NON-EMPLOYEE.  I'm not saying that my current contracting company treats me badly; they don't.  It's just that as a contractor, you do not share in any of the "company" things, and there are some issues you have to steer clear of, as no one wants a co-employment issue to crop up. 

Companies like contractors because they aren't as difficult to get rid of (pretty much a phone call will take care of it), and companies want to bring in just the right skills for just the right job.  Of course, that only happens in the bizarro world.  Though a contractor does bring established skills that are useful to a company they contract for, he or she must also get a lay of the land and understand the issues surrounding the work they are contracted to do.   Perhaps some contract positions/temp employees may be able to "drop in" and perform a job adequately, but others need time to assimilate to the work environment, learn what has been done, and understand the political situation to be effective.  

I wonder if when regular employees see contractors filling positions that could be and would be better be served by a regular employee, they may become less engaged (a hot topic these days), as they may be concerned that their position may be given to a contractor or that they are always preparing for the eventual departure of the short-term contractor.

Companies like to tout contracting as being cheaper, but in reality, after the fees by the contracting company (the contractor's employer of record) are taken into account, the cost is about the same.  The only difference is that you have a worker who does not have the same investment in the company's success as a regular employee and who is looking for his or her next contract from almost the start of the job. 

Rebecca Metschke has done it again.....see the article that sparked my comments on contracting.

Are You the Boss of You?

from The Interview Edge by Rebecca Metschke

 

Earlier this week, The Wall Street Journal ran an interesting piece about the “age of going solo” – working for yourself. While it focused on the ins and outs of how to succeed as a consultant, I was struck by the snapshot of today’s workforce in the article’s setup.

With unemployment stuck on “high” and millions of people in the “long term unemployed” bucket, seismic shifts are taking place in the composition of the workforce.

According to author Richard Greenwald, 20% to 23% of U.S workers are “operating as consultants, freelancers, free agents, contractors, or rmicropreneurs.”

Think about that. Close to one quarter of working Americans are employed on a contingent basis.
Goodbye, defined career paths and benefits – hello, project-to-project work.
With the employment picture looking gloomy for literally years to come, contracting may be in your future, too (if you haven’t gotten there already).

I know many folks who were forced out of traditional jobs during the last recession – and quite a few are still working for themselves today.

Contracting/freelancing/consulting isn’t easy, especially if all you’ve ever known is the 9-to-5 world…but it can be rewarding. Many independent employees will tell you they don’t ever want to go back.
Bottom line: given the lackluster employment outlook, you may very well end up being the boss of you, whether or not that’s what you were planning.

The Interview Edge- a comprehensive guide for people who are serious about their careers. Available in instantly downloadable format.

Could There Be Even a Slight Improvement in the Job Market?

I tend to believe that we haven't seen the worst of the economic debacle, but I will say that I am seeing more activity in my ongoing job search, as I have been contacted by 3 companies in the past few weeks.  I will also tell you that all 3 came through networking contacts, including one of a person I have only met once or twice while interviewing at a company she worked for!

Whether or not there is good news regarding the economy, I do not know.   I do know that in once instance, the advent of the new year (read new BUDGET year) has created the opportunity.   For those of you who may be getting discouraged in your job hunt as the holidays draw closer, please do not "quit" for the holidays!   Many companies are finalizing budgets for 2010 and are making plans to bring new people on to start in January.  As some companies have had a decent 3rd quarter, they may be optimistic and making plans to try to expand in January.

Press on even harder in your job search now, making contact with your connections, letting them know that you are still in search mode, providing them with a fresh resume and description of your key "selling points."   This may sound like a dumb suggestion, but rename your resume....from "SStein Sept09.doc" to "SStein Nov2009.doc."   You may have some updates you've made, and second, your document will look current to someone who hasn't heard from you lately.  Either way, it might just keep your contacts from overlooking you.