The current trend in employment management is to stabilize expenses and focus effort on areas of the company that are assets. Non-money making areas such as Information Technology Departments are being streamlined and are prime candidates for contingency employment.
When new technology dictates that applications and systems need to be upgraded companies simple contract the technical resources needed to get the job done. The permanent technical staff which has been streamlined, will acquire the necessary training to maintain the upgrades and the high dollar contractors are released. Also, as companies recognize and try to minimize the rising costs of employment benefits and severance packages, more are starting to employ people on contract rather than on a full-time permanent basis.
Permanent technical positions are not being eliminated, there is just another employment option that is available for employees. Contingency employment/contracting is definitely not for everyone. Those choosing contingency employment are more concerned about freedom and diversity as opposed to employment security.
If you are considering contingency employment, review the pros and cons before making your final decision:
Pros
· Allows you to build new skills
· Allows you to diversify your work experience
· Opens the door to new opportunities
· Flexible work schedule
· Higher salary
· Tax advantages
· More defined work expectations
Cons
· No employee benefits
· No job security
· Salary is attached to the task
· No holidays or sick leave
· Requires a lot of networking to ensure you have assignments lined up as a contract expires
· Hiring is based strictly on your reputation to get the job done efficiently and effectively
· No on- the- job training, you are expected to be the technical expertise
If you have not made a decision to be a full time contractor but the thought of increasing your skill set sounds good, why not try contracting for a short period of time. This could be a good way to open the door for full time employment in a new company. Before signing that contract read the article in this issue on Elements of a Contract.
John Jordan Jr.