Why do you think you need direct hire to make a living? It seems that 99% of ‘direct hire’ job seekers look for security above all else. But the truth of the matter is that during the last 2-3 years, most companies in the United States experienced a slowdown and were forced to lay off both contract employees and direct employees; But when things started picking up in 2004, guess who those same companies hired first…contractors!
Contract hire work is often a different line item in a company’s budget than a direct hire employee. Businesses can hire contractors without having to pay your benefits, unemployment insurance, holiday and vacation pay (usually the hiring company pays for these items), or match your 401k plan. This makes hiring contractors a relatively easy and painless task for a business going through a downturn. Projects/jobs may not be as plentiful, but they still need employees to do it!
Have you ever been at a company as a direct hire and fantasized about NOT working for that company? The road ahead looks bleak and job hunting is hard to do while stuck in a cube 8 hours a day. But you have security there, right? You get a raise once a year, as long as the economy is strong. As a contractor, you only have to stay for your project/assignment and then you are free to leave (or if another project comes up internally you may be asked to stay), and then on to the next job for a more attractive price!
Or, on the other hand, I can think of countless times where a company hired a contractor through me, and they were a good match, at the end of the contract they hired the contractor directly with a raise and all! You can’t win if you don’t play. In fact, there are some companies that ONLY hire certain disciplines per contract before making any kind of long-term commitment. Am I talking about a ‘direct contract’ or ‘temp to permanent’ placement? No, they are permanent contract positions with no long-term commitment.
“I don’t want my resume to look like I’m a job jumper!” That’s exactly what it will look like if you try to play ‘Contractor’ with direct hire roles. A contractor’s resume may or may not have dates. Businesses generally don’t care how long a contractor was in their last position. But if you show a hiring manager your direct hire resume and you have 10 different companies in a 3 year period, what would make the manager think you would stay with his company?
Experience
Personally, I would rather have a 1 year contract position with a certain Minneapolis based medical giant than a direct contract position with Bob’s Medical Device Company. This particular medical giant is a highly acclaimed company recognized throughout the world and the experience you would gain there is more than likely much more valuable than any direct position elsewhere.
Hiring is especially good for junior-level candidates who don’t yet know what their niche is. If you’re a junior-level mechanical engineer but don’t know if you want to do design work, project management, engineering sales, or anything else, hiring is a great way to discover your calling. If you start out contractually doing design work and hate it, once the task is done you can cross “design” off your checklist and move on to the next discipline.
The joys of contract work
There are so many advantages to the employment contract that it is almost difficult to address them all! Here is a small sample:
oNew companies/industries year after year
o You set your pay raises (but you still have to be realistic!)
See different parts of the world (if you choose to be a national contractor)
oBuilding a network of dozens of hiring managers and recruiters
o Letters of reference! Everyone loves when people say nice things about them, so why not have a great collection of them?
oIf you travel to get to the headquarters of a company: Travel expenses! Ask virtually any direct employee what kind of living expenses they receive for working at the same company!
oMeet new people and work in new teams!
Try before you buy! If your ideal situation is to become a direct employee of the company, now you can date the company before you marry it!
or Overtime! Most contractors are hired by the hour. You work 45 hours a week; you are paid 40 regular hours and 5 overtime hours. Ask most direct employees how much they get paid when they work 45 hours a week!
How do I start?
Some people think that you have to be a big risk taker to be a contractor. What I really see is people not necessarily taking risks at all, but people keeping tabs on a small database of recruiters and constantly contacting them with updates. I’ve worked with many contractors who aren’t even looking for a new job, but check in with me on a weekly or bi-weekly basis. They let me know about the status of their current project, whether the company they’re hiring or firing from, and any new updates they want to add to their resume (or my database). The entire call is 3 minutes long, but one thing about hiring her is a contact sport: the more people you contact, the better you do.
I would recommend working with 3-5 different recruiters; Provide them with your resume, cover letter, and 2-3 professional references. Call or email them weekly or bi-weekly and let them know that you are indeed excited about short-term or long-term assignments.
Summary
I couldn’t even tell you the number of contractors I know who wouldn’t trade their career for anything. Some of these people have literally traveled the world on different assignments, while others choose to stay local. Contract work is a great way to expand your comfort zone, work in a variety of industries, and meet lots of new people. Not to mention, it’s a great way to monitor your own career, set your own pay rates, and plan your own vacations! Who wouldn’t want this?