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Contracting can best be described as the ultimate try before you buy!

Rather than jumping into a long-term commitment it provides an opportunity for an employee and an employer to work together to see if the fit is right for both parties. It can however be a double-edged sword. As there is no commitment either can pull out of the arrangement if things don’t go to plan.

In recent times we have seen a shift in how employers and employees feel about contract work. The demand for contract roles has increased as the workforce continues to change under new pressures. As companies respond to financial pressures, shrinking resources and ever expanding workloads often their demands do not reduce and they need to find a solution. Staffing is kept lean and mean with no slack for over-and-above projects. Sometimes the only cost effective way around this is to hire contractors to ensure timeframes are met on those non-negotiable projects.

Previously there was a preconception that contractors were “second best”, not of a high enough standard or looking for a way into permanent roles. Thankfully this has changed. Many professionals with a solid background and transferable skills have made a lifestyle choice to become “career contractors”. They are motivated by goals other than security – they want to work from home, have had enough of workplace politics, want time with their family, want to take that trip, or return to study. Contracting can offer that flexibility and balance, giving people more choice. Market conditions also play a role influencing the supply/demand curve. With the candidate market remaining tight and employers facing increasing pressure with managing their costs, both sides need to be flexible in considering their options. Over the last 6 months we (market partners) have seen an increase in candidates who previously would only have considered permanent roles and are now prepared to look at contracting as another option. This has been across both the Services and FMCG sectors. On the employer side they are 6 months in, know their positions and what they can and can’t resource and fund for the remainder of the year so need to consider their options.

So what are the advantages and disadvantages of contracting?

For employers there are numerous advantages:

• Cost effectiveness – no annual leave, sick leave, long-service accruals
• Increased productivity from contractors versus permanents as they don’t have to deal with competing demands and can focus on the task at hand
• Ability to dedicate resources to key projects without affecting the day to day running of the business
• Help to manage resource allocation
• No long-term commitment
• Inject new skills into the organisation with minimal risk

And the disadvantages:

• Some companies are concerned about confidentiality of information but all contractors especially career contractors are aware that their reputation is critical if they are to get
  another role
• Lack of commitment – if a project runs over or a decision hasn’t been made as to the finish date a contractor may have already secured another role or wish to move on

There are also many advantages for the contractor:

• Higher productivity as you don’t have to deal with competing demands or office politics and can focus on the project
• Variety of work places/industries/roles/challenges keeps it interesting and tests the
  individual’s skills to adapt and work in different environments
• Employers often open to giving contractors an opportunity to move across industries or roles as there is little risk for them
• Clarity of job responsibilities and expectations
  – hired for a specific purpose with a timeframe provided
• Paid for every hour you work
• Able to pursue other ambitions and still have an income

And the disadvantages:

• Inconsistency of income or role; depending on the individual and how they adapt and can manage their financials; particularly in-between roles
• No security; my contract ends in 3 weeks, what next?
• No annual leave, sick leave and other employee benefits
• Don’t always feel part of the team
• Minimal training and development; can be a steep learning curve
• Roles won’t always live up to the PD; can sometimes be “below” where you were previously
• Constantly have to adjust to new work environments

Contracting positions in sales and marketing are still in their infancy if you compare them to other
industries like IT, healthcare or industrial that have been using the benefits of contracting for years. There are still companies that find it a relatively new concept however they are embracing contracting to succeed in achieving their targets and objectives.

If you are thinking about a career change, don’t discount contracting as an option. It’s an ideal way to change industries, gain experience in a variety of roles and achieve more choice and balance. Security, even for permanent staff, is a thing of the past so for those willing to sacrifice this illusion there are many exciting benefits.

If you have good skills and an adaptable style then contracting may be worth considering…..and if you have to meet that deadline and don’t have the capacity in your team then perhaps think about what a contractor can do to keep you on track.

Tim

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Posted under Jobs, Marketing