Who hasn’t – on a day when office politics seemed particularly Machiavellian or that promised pay rise has been postponed AGAIN – fantasised about chucking in a permanent job and contracting? The freedom, the flexibility, the power… it’s seriously attractive. But will it work out for you?
Basically, the answer depends on two things: the demand for your services on a contract basis and your personality.
The former is easy to assess: check the job ads, talk to some recruiters, check with your industry contacts. In most industries, the demand is there. But if you want the big money that you should be getting in exchange for less job security, fewer benefits and a lack of conventional career progression, you need to be offering something that’s in limited supply (and not being off-shored to Bangalore). Contracts typically range from 1-24 months in length. Twelve months is common, probably because contractors are often used to cover people on maternity leave.
Once you’ve established that there’s a strong market for your services, you need to get real with yourself about whether or not you’ve got the personality to make the most of the opportunities provided by contracting, chief among which is the freedom to choose stimulating assignments. Ask yourself the following questions (and if you’re not answering yes to most of them, reconsider telling your boss where to shove it):
- Are you a networker? Do you have good contacts and are you prepared to use them to get work?
- Are you organised and responsible? If you go it alone (as opposed to through an agency) you will probably have to register an ABN, submit quarterly Business Activity Statements, put money aside for tax time, contribute to your own super, etc.
- Are you essentially optimistic and comfortable with the unknown? Can you live with not knowing what your next job will be? Will you be able to chill out between contracts (as opposed to freaking out)?
- Are you a risk taker who will take advantage of the freedom contracting offers and reject unsuitable offers or chuck in jobs if they aren’t working out?
- Do you have financial back-up if things get lean? Do you have some savings you could fall back on or parents who would spot you for a month’s rent?
If you’re comfortable with these factors, contracting is definitely something to consider. No longer something to omit from your CV, contracting is a legitimate way to earn great money and – often – negotiate flexible working arrangements. And these days, contract positions often lead to permanent positions, which (sadly) start to look attractive when life becomes more about applying for a mortgage and less about getting in that morning surf!
Methinks the real situation moving to contracting deserves a lot more consideration than is painted in the article although it’s message is solid. The first step to getting past “the grass looks greener” can be tested by talking with existing clients about their interest in using contractors. It’s easy to assume because one has an ongoing relationship that continuing that through contract work would be an easily continued arrangement. Better check before depending on that. Some companies only use consultants and contractors from companies with whom they already have business purchase setups. Second – one must be prepared for a different level of energy commitment than with your steady job. Basically you are in new-business startup mode. Do not underestimate the administrative aspects of that – getting a business license, establishing a website, setting up Quickbooks, getting legal advice. Thought about medical insurance coverage if you have kids? And now you will be busy with a new regimen of communication – emails from home, vmails on the road, and you won’t say no when those calls come at dinner time as you may have before. Your family will need to recognize different patterns of activity and behavior. They’ll also have to be prepared for different support demands. Risk has another element to what’s described here. The risk of no business and no uptake for some time. Not only does that require financial support. It requires an attitude adjustment. At work you never worried about continuing business. Now you have to worry about both initial business and continuing business. Of course there’s a difference between contracting and consulting, but in both cases you are the one responsible to find business for yourself. There’s to doing that than you might think. The rewards are great – especially the freedom of choice one. So don’t shy away – just be aware of some realistic aspects that need to be addressed before delivering that resignation letter.
Totally agree with you, Warren. There are LOADS of things to consider before making this decision.
Good point about investigating whether or not current clients can use independent contractors.
However, as much as the responsibility of finding contract work can all rest on your shoulders; if you’re an exceptional candidate and an expert in your field, GXY Search can also find you that business and give you one less thing to think about!
Contracting has definitely been the highlight of my career.
I arrived fresh off the boat in London 3 years ago to the day. If it wasn’t for contracting my career advancement would be no way near what it is today.
Naturally with London being the bustling city that it is the opportunities are endless. Contracting gave me the opportunity to network and find my way around the E-Commerce fashion industry. I worked back to back for the first 2 years in London, never a lull inbetween contracts, made many friends and didn’t get bogged down with office politics. I flew over to europe when I could, and was grateful to be working for all the well respected fashion brands in London.
Setting up a Design business wasn’t too difficult, just paperwork and invoicing. The key is to getting yourself a brilliant accountant that will ensure you are paying minimum tax.
The experience that contracting added to my portfolio has been incredibly valuable. I’m now working full time (we all do in the end don’t we?!) But now I have the job I always wanted that would have taken me years to get to otherwise.
To anyone out there considering contracting – if you have enough cash to support yourself, have a bubbly personality and get along well with people then contracting is definitely worth a go.
P.S. BIG hello to Mel – fantastic to see your company up and running and kicking goals!