When the Door Closes, An Even Bigger Window Can Open.

The different contract types, what do you choose for your next job?

I found contractual work as a brand manager – which has kept me busy for the past 8 months, thankfully.   Contract work is becoming popular with many companies because it eliminates the high cost – and risk – of hiring someone under a permanent status.

In the past, when I applied for jobs, I would only place an ‘x’ next to the ‘full time’ positions. I scoffed at the thought of contract/consultant/temp/freelance work.  However, I’m now older and wiser by 8 months.  Working in this capacity has been a fabulous ride.    In addition to assuming full brand management duties for one brand,  I support a second brand,  drive our social media strategy, and launch new products for additional brands.  I report directly to the VP of, Marketing who truly cares about her employees’ professional trajectories.   So, my current contract role is a step higher than my earlier permanent position.

So, here’s an important distinction between 2 types of contract jobs: Independent Consultant and Temporary Hire.  You can be an independent consultant, meaning  1) you have your own Tax ID, 2)  you must pay for indemnity insurance which protects you against being sued by your clients/employers, and   3) you set up a sole proprietorship.  However, the restriction here is that you must have your own fully functional office, and cannot physically go into your client’s office 5 days a week.   Depending on the nature of your work and your own resources/what stage of career you are in,  this can be a fantastic fit for you or a hindrance.  Also, you typically get paid project-by-project basis and must keep strict track of your billable hours.  This is different than getting a steady paycheck every month because your earnings fluctuate with your level of projects.  The dynamics of your contribution may change because you will not be given something an internal employee can handle, even if it’s something you’d like to do – because you have billable hours.

On the other hand,   if you are a temp, this means you get a 1099c  form (I think, but I need to verify and get back to you),  and you get paid overtime if you go beyond 40 hours.  You also are assured of a steady paycheck if you are a full-time or even a part-time hire.  You go into the office every day and can be well integrated into the team.  Yet, if you need to travel for your job, there can be serious red tape.  Your company can run into legal trouble if you are being treated too similar to an internal employee.

Insert Caveat Here: I’m not a legal or HR expert on the subject of contract positions.  I just wanted to share my experiences/research with you.  Each company has its own policy and may be subject to different legal criteria.   And with every rule, there’s definitely the ability to bend it within legal limits.  So, please just take this as a guideline and not as gospel – and absolutely fact check me. If you know something more or want to provide a correction, I’m delighted that you would take the time.  After all, the point of this site is ‘information exchange.’

Please note that  Freelance and Contract are terms that I use loosely- as some companies will fight to go around the red tape, so you are classified between an Independent Consultant and a Temporary Hire.  So, I term this gray area as a Contractual Role/Freelance.  Just my non-scientific opinion, that this area is potentially the best of both worlds.  For instance,  perhaps you are able to enjoy the traveling privileges of a consultant without having to set yourself up independently.

There are some people who love the autonomy of not being a permanent hire, and they make a  life long career of independent consulting/contractual roles.   And maybe you are one of them- to each their own!

Is a contract status something that  I want indefinitely? Not at this stage of my life. Perhaps, when I’m 15-20 years into the game.   Right now, I would prefer to be a permanent hire, so the company invests in my training, gives me a 401K, etc.  (With most contract roles, you cannot partake in the training programs for permanent employees.)  However, in the interim, I’ve been engaged in solid career and resume building projects, while growing industry-specific knowledge.  As long, as I’m giving this role my absolute best efforts, it can only lead to two things 1) preferably becoming a permanent hire withing my existing company – or if that doesn’t end up happening  2) giving me time to comfortably search for a permanent position elsewhere, while building my credentials.  So, my $0.02 is, don’t necessarily turn down a job because it’s not ‘permanent.’  This recession has redefined and expanded the roles of contract positions.

Since companies are still laying off people by the tonnage, those left ‘intact’ have double or triple duties.  They need help but the company can’t afford to hire, obviously.  This type of overload is not sustainable long term for a company’s growth.  So, smart companies fill their need through contract/temp/consultant/freelance workers.  And, smart person that you are,  have strategically positioned yourself to fill their need – and yours.

As always, here’s to wishing you the best in your job search.  And please keep your fingers crossed for me, too!