The Case For Consulting/Contracting

I recently switched from being an in house, corporate recruiter to being an agency recruiter. I've done it several times in my career and many people were surprised by my decision, but the reasons had mainly to do with my new company - the leadership, the clients, compensation, the goals and vision of the founders.?During this current economic downturn, we are seeing an uptick for a few reasons.

• Contractor wages come out of a different budget than full time wages, so they have a different effect on hiring plans.
• Businesses still need to get projects finished, and sometimes using a short term contractor is a better choice for employers. If macroeconomic factors improve anytime soon, great contractors may be offered FT conversion.
• In house recruiters are often among the first resources to be laid off/furloughed during an economic downturn. Agencies often fill in the gap for the one-off position that still needs an assigned resource with an agency.

Several years ago I had a resume/coaching client that worked at Boeing. He was in what is best described as an emerging technology group, working on building out analytics functions. He had completed a full master's program and the work he was doing was pretty cutting edge. His resume needed a bit of tweaking here and there, but he definitely looked good on paper. He really wanted to break into a tech company in the area, but all of his efforts for several months yielded nothing; no phone screens, no interviews.

My advice: take a short term contract at a company that will get you OUT of the rut.

He was flabbergasted, because he had never even considered contracting.?Here was my rationale: Boeing is a major employer in Seattle, and they are one of the more established companies in the area. A lot of people don't understand that Boeing is a MANUFACTURING company, and that a lot of their processes and business practices are dictated by their role as a major government aerospace contractor. Yes, they use technology to build airplanes, but their CULTURE and work processes/practices are formed more by their industry and major client. Technology is a vastly dissimilar industry, the pace of work is much different, the WAY business occurs is almost a polar opposite from a government manufacturing contractor. Tech recruiters in Seattle will tell you that a majority of technologists (ie Project/Program Managers, Software Engineers, analysts) with a long history at Boeing usually don't do well transitioning into the tech industry which is highly ambiguous and subject to constant change after a very regimented, long-term planning and execution cycle environment. There are other local companies and industries that can help bridge that gap because they combine supply chain and hard products with intense tech infrastructure - such as telecom (T-Mobile, AT&T), retail (Costco, REI, Nordstrom, Eddie Bauer, Starbuck's), gaming (console) (Microsoft Xbox, Nintendo). Usually when a company is hiring contractors, it is more flexible on the soft skills, because the person coming in to work on a project is there to get a job done. Although yes, they are interacting with the FT teams, as long as they can get along with the team from a communication perspective and get the job done, skills are much more important. And, often they are remote or only onsite a couple of days a week, so the need for "fit" is even less critical.?

Nowadays almost all agencies that employ contingent staff offer health benefits. Even if they don't, contractors generally make significantly more money than their FT counterparts, so affording COBRA/marketplace options for a few months may become a non-issue. The downside to contracting is obviously the instability. But let's be honest, with current turnover numbers (most employees last 1-2 years if that as a FT employee), there isn't much difference. And honestly, being a career contractor is much more attractive to recruiters than being a job hopper.?

So what are some of the reasons to consider contracting that you may not have thought about?

-As stated above, it may be a great way to make a career transition into another industry.

-Gaining skills on the job as you move around, exposure to new industries.

-"Try before you buy": you get to check out whether or not you are actually interested in a potential employer. A significant number of contractors get hired on FT with clients they work with.

-More money in general.

-Flexibility: contracting is great for military spouses or those nurturing a "side hustle" they intend to turn into a company some day.

-Introverts/neurodiverse professionals may find contracting a much more satisfying career option because there are often fewer social demands on them at work, and you may even be working remotely/from home.

-Just out of school: it's a brutal job market out there. You can make valuable connections inside of companies. If you do a great job, even if they cannot hire you, they may know of other industry connections to direct you to. My first true HR mentor was someone I met on a temp assignment.?

-You need to pay the bills while you are looking for a job. Contracting offers you flexibility while interviewing.?

Types of Contracting Options

There are a few different types of employment categories that fall under "contracting".?

• Agency: you are an hourly employee of an agency who handles all the operations: business development/account management, payroll, taxes, employee relations, benefits administration. You generally work with them for a specific project, or series of assignments, but there may be lulls between assignments. You work on site at the client who provides all the equipment and resources you will use. Many larger companies have several specific companies they work with. Most of the recognizable agencies have national or even international reach: Kelly Services, Robert Half, Office Team, Adecco, Ranstad, Manpower, Volt. These companies often have specific divisions handling different industries and types of roles. Robert Half has office/operations, legal, and IT divisions it is known for. Manpower handles both office and manufacturing/warehouse positions. Kelly Services has a division for HR professionals in several cities; I was employed by them at Microsoft as a recruiter many years ago when I took a vacation to Europe and visited their offices in Ireland. There are also many boutique local or regional staffing agencies that often have unique personal relationships with businesses that they can leverage. Many agencies also have "direct placement" opportunities, meaning they act as an adjunct recruiting partner for full time roles inside of their clients. In this case, they are not your employer, but they are your recruiter. They get paid a flat fee for finding you and presenting you to clients.?
• Consulting (also the broader umbrella of "Management Consulting") are companies that are brought in because of an expertise with a specific area and a full team that can plan, scope, and implement projects as a team. You are a full time employee of the company, and if one project finishes you may be "benched" for a short amount of time before being deployed to another project. During the benched period you are still paid but may not work on a specific project. Many consulting jobs include extensive travel and long hours. You may or may not work on site at the client, and your employer provides all your equipment. Accenture, Bain, BCG (Boston Consulting Group), Ernst & Young, and Price Waterhouse Coopers are among the most well-known consulting firms. There may be smaller niche consulting companies in your area; often it is a fine line between "consulting" and "temp assignments" with smaller companies. Often pay very well in exchange for all the travel and long hours. Generally salaried.?
• Independent (1099) contractor: you are a sole professional that works on projects, usually not on site at your client's offices more than occasionally. You are responsible for all your own business management such as business development/account management, payroll, taxes. You have your own business license, pay business taxes on city, state and federal levels. You provide your own equipment, benefits, SOW (statement of work), and billing. The advantage to being an independent contractor is total control over your business including setting prices. *Most creative jobs are by definition independent contractors: musicians, artists, authors, photographer, actor, designer.

Getting Started With Agencies or Consulting Companies

Agency and consulting jobs are filled the same way as internal jobs. A combination of networking, posting jobs, working within an ATS. You can usually find them on sites like Indeed.com, LinkedIn, Glassdoor, ZipRecruiter, Monster and other job boards. Job postings generally don't mention specific clients, but if you are talking to a recruiter, they SHOULD share that information with you from the outset; if they are not able to share a specific company with you, chances are they don't actually have an open role they are working on. When you hear horror stories of being "scammed" or "phished", or that "the jobs aren't real", this is usually referring to agencies (I have a fairly comprehensive blog post to help you understand agency terminology.). The best way to vet any agency is to ask local internal recruiters/HR professionals in your area who they do/not recommend, as well as established professionals. (I have an acquaintance that has worked almost exclusively with one particular direct placement recruiter for most of her career; she has moved several times for jobs this recruiter has presented. Only in her most recent job search did she go solo -she wasn't in a position to move. Their professional relationship has spanned over 15 years.)?

• NEVER give names of references/managers to an agency recruiter for a job until you are actually presented and are moving forward; this is where scam/phishing issues start.
• Do provide a .doc version of your resume; the agency/consulting company takes off your personal info and usually includes their logo/contact info.?
• If they ask for a Right To Represent, make sure it is for a specific job and not a blanket permission to present you for EVERY job (there should be a job number and title associated with the request).?
• Be honest with your availability including planned time off, whether you are interviewing actively or have serious offers on the table. If you are only looking for something short term, let the recruiter know. Conversely, if you are only interested in 6-12+ months, be candid.?
• Remember that agencies are paying you an hourly rate, so make sure you factor that into your pay calculations; if you don't need benefits, you may be able to ask for a bit more on your hourly rate. (The formula to figure out salary-hourly conversion is: salary $ ÷ 2080, which is the number of work hours in a year at 40 hours per week for 52 weeks). Use payscale.com or salary.com to determine going rates if you haven't been in the market for a while.?

Contracting isn't for everyone, but it may be a viable form of employment if you aren't having luck with either your current search, you need flexibility, or your goals are not to follow a traditional career track.