Contract Assignments
Gerry Calce, a distribution and logistics manager, had been working for a major Toronto food manufacturer and distributor for 16 years when the company recently was sold to a new owner. In the aftermath, he and other top managers were offered severance packages, but they were also asked to continue working for the company on six month contracts.
"It's a six month contract, but it's more like two weeks due to the termination clause," which requires only two weeks' notice to end the contract, says Calce. Nevertheless, he says working on contract is a good transitional move. "I'm looking at both full time employment and at [consulting work] on a project basis," he says. "This arrangement is giving me time to network and gather resources to see what's available out there."
As companies reorganize and try to minimize the rising costs of benefits, litigation and severance packages, more prefer to employ people on a contract rather than on a full time, permanent basis. "What many employers are doing is taking steps to protect themselves from complication and potential litigation by employees or former employees," explains Peter Daigle, an employment lawyer with Weir and Foulds, a Toronto law firm.
"For employees, working on contract offers advantages as well as potential problems," says Erin Jones, a career consultant and contract employment expert in Toronto. Whereas full time employees generally receive a complete benefits package and are expected to work for a company indefinitely, contractors generally receive no benefits and work according to the terms of a written agreement, which states a specific project start and end date.
Karen Scanlan found contract work an excellent way to build new skills and diversify her editing and publishing back ground. Development Dimensions International, a Toronto provider of human resources programs and services, hired her last year to handle an assessment project for a major company. Scanlan soon found that her experience in making presentations as an editor helped her facilitate sessions effectively. The project, which also involved assessment and interviewing, took off. Identifying your transferable skills as Scanlan did can help you land contract assignments in an industry you'd like to switch into.
It also may lead to a full time job. "Contract positions increase your chance of being hired permanently and open the door to new opportunities," says Doug Colling, a principal with KPMG Management Consulting's executive search practice in Toronto.
"Another plus of contract work is the sense of freedom it brings," says Jones. After 15 years as a full time employee, Deb Chessell started her own independent human resources consulting practice last year. She says she enjoys the time for her family and the revenue that working on contract can offer. The vacations aren't bad, either.
"The work I do dies down in July and August because most clients are on vacation," Chessell says. "So I shut down for six weeks in the summer for my vacation. Just try to find a company that offers that!"
Chessell also likes the fact that the conditions of employment for contractors usually are spelled out clearly, so she can immediately understand her own and co workers' responsibilities. "I like to have a good idea of what my role will be," she says. "I get all the users in a project together and set contracts with them. I use a flip chart to identify roles. Then all parties know what my role is. I've found that to be an excellent tool."
The Down Side of Contracting
To be sure, contracting can present some serious disadvantages, so it should be approached cautiously. For example, says Jones, while you're focused on completing a project, you may not have time to look for new assignments. To make sure you have enough time to keep marketing yourself, negotiate your schedule carefully from the project's outset. Propose a four day week with 10 hour workdays, or request flexible hours so you have time during regular business hours to line up other opportunities and interviews.
Calce, for one, is performing company work in his home office on weekends so he can network more during the week. "It gives me more time to make calls and send resumes, but I'm putting in more hours than I previously did," he says. "It's like running your own business. You must do a lot of networking so you have something [else] set up when the contract period is over."
Indeed, life as a contract employee requires an entrepreneurial mindset, so it isn't for everyone. Scanlan warns that, "Anyone who's thinking about contracts must realize that they'll be exchanging security for freedom. Some people can't deal with that. But I can manage my time and choose my hours."
It's also important to consider your family's attitude toward the arrangement. Says Calce, "Family life is important. If it interferes with family life and your spouse doesn't like it, then [contract work] isn't for you."
Succeeding in contract work requires financial savvy as well, Jones explains. After all, you'll need to charge enough for your services to make up for the corporate perks you'll no longer be receiving, but not so much that you price yourself out of the market.
"I haven't been on salary for years," says Karen Brill, a Toronto based independent training and development consultant who now works exclusively on short and long term con tracts. "With contracts, you may not get benefits, [but] usually you get more money."
Vacation, health and dental plans, insurance and other traditional benefits can add 25 percent to 35 percent to the cost of an employee's salary, according to many compensation surveys. You must factor in these and other expenses (such as office space, typing, printing, travel and phone calls) when negotiating the compensation portion of a contract.
Additional questions to consider before accepting a contract position are "When I finish this assignment, will I have new marketable skills and experience?" "Will this project move me closer to one of my career goals?" "Will it strengthen my resume?" and "Could the assignment lead to a full time position?"
"There's risk and, let's face it, contracting is tough," says Brill. "[But] I want to be paid for the work I do. The realization that the contract could end or not be renewed can motivate you to do an excellent job to justify the company's expense. In an office job, it may seem like you're being paid to just put in time. My money's attached to the task and what I do."
