Considering a move into contracting?

There are so many reasons why contracting can be a good option at certain times in your career, and many of the positives can apply equally to more junior candidates looking to get into procurement all the way through to very senior procurement professionals.?

I have always been lucky enough to recruit both permanent and contract roles, so I get to see the upsides and (some) challenges with both. Some of the benefits of contracting, and potential things to watch out for, can include:?

?? Financial benefits - Your contractor value (e.g. daily rate) will typically increase from your perm salary equivalent for many reasons, including organisations willing to pay a premium to tap into specific skills and capabilities that are lacking in their current teams, increases to reflect reduced job security and leave payments, more flexibility given to employers (if an organisation needs to pivot, temporary workers don’t require the same notice period as permanent employees) and other reduced costs compared to perm hires.???

Some candidates worry that there are lots of upfront costs when becoming a contractor.? Whilst one option is to establish yourself as a PTY Limited contractor, including taking out the necessary insurances etc, we can also set up candidates as a PAYG contractor, removing some of the potential costs and administration. Contracting may also offer various tax advantages, which you can discuss with your accountant when considering contract roles.?

?? Know your value - It is definitely worth talking to a recruiter that works in the contracting space (??) to understand what your competitive rate looks like, which really can vary from project to project. A big part of this is working with the recruiter or hiring manager to really understand what you are signing up to before you jump in. Remember, once a rate is agreed it is a lot harder to increase it mid-contract than it is up front.?

?? Supercharge your career - I speak to lots of permanent candidates who struggle to get their next move because they have not worked in a certain industry, across certain categories, or on certain projects. The shorter term nature of contract roles can make moving into a new area much easier, providing you with a range of new contacts, skills and?experiences that you can then leverage in your next role (contract or permanent), and help advance your career.??

?? Security - There is an element of risk when moving into a contract role, including shorter notice periods and a contract end date. However, strong labour markets, in-demand skills across in-demand areas (procurement and supply chain) and a high volume of open roles often make a move into contracting less daunting, especially at certain times in your life/career. Spending time in contract roles can also help to expand your network of peers, hiring managers and recruiters, all of which helps to increase the likelihood of future opportunities, whether perm or contracting.????????

?? Flexibility - The temporary nature of contract roles often means that there is much more scope to negotiate flexible working arrangements. This could include reducing the number of days you work per week (which may not be on option in your perm role), more flexibility on when you do your job, and where, with shorter term projects often providing complete remote working options and even longer term contracts only requiring minimal in-person office time - great at certain times in your life.?

?? That contractor feeling - Some contractors will feel like they are coming in to do a job and then leaving without ever feeling like they were part of a team, even on longer term engagements. However, most of the organisations that I work with really do focus on removing the distinction between perm and temporary team members. It’s often the smaller things that go a long way, like including them on team socials or making sure they are invited to weekly all-hands meetings - contractors love these types of engagements, will leave with a really positive experience and often come back, either on another contract or as a permanent hire.?

Contracting is not for everyone, and is often dependent on a variety of work/life factors unique to your situation. However, if you are interested in moving into a contract role, or looking to hire talent in this space, then I would love to chat.?

Cozens Mabel is a specialist boutique procurement and supply chain recruitment agency.? We recruit nationally across ASX listed companies, global companies and small to medium sized businesses’, government agencies and not for profit organisations. We recruit both permanent and contract opportunities from CPO down and Head of Supply Chain down to graduates.