For the technology professional (or any professional for that matter) pondering the question of whether or not to become an independent contractor, there are many questions to ask, and some very honest self-assessment to be done before making the leap.
If you talk to a true independent contractor today, he/she is very content with their status. They have a better income than as an employee, they can “choose” from multiple contract opportunities rather than being told what project they will be working on, they can choose to take extended time off and they can even take contracts that allow them flexibility for other “interests”. The contractor does not need to be involved in the parts of corporate life that can be unappealing, such as office politics or the concern about job progression. They would not want to be an employee anymore, and they enjoy the flexibility and freedom of the self-employed.
As with anything in life, there are costs associated with this life choice, and they can be in dollars and cents or they can be less tangible. The overriding difference is that a contractor is not an employee, cannot think like an employee and cannot expect the benefits of an employee.
- A contractor is only paid when they work, definitely the number one concern for contractors.
- Contractors are responsible for their own training and for keeping current with trends. It’s easy to be left behind and that affects contract opportunities.
- A contractor needs to obtain their own medical benefits and insurance, typically through industry associations or other such means.
- The contractor needs to keep good books, to market themselves and to operate in all ways like a business.
- The contractor is a one person business and that can be hard for people who want to be a part of something bigger.
At the end of the day, it’s important that the independent contractor have enough entrepreneurial spirit to take a little risk. He/she needs to be very competent at the technical aspects of their role. They also need to have better than average soft skills, an ability to communicate effectively and they must project a professional image.
More and more, professionals are choosing the path of independence as we experience greater skills shortages. It is important that those making the leap have really thought through the consequences and are ready to take the risk. It’s a great way of life for some, but it’s not for everyone.
If you’re an independent contractor what other advice would you give somebody considering the “leap”? If you’re looking into the change, do you have any other questions or concerns? Share your thoughts and experiences with the contracting community below!