BUSINESS: The Ultimate Resource

April 2003 Upgrade #7

ACTIONLIST
Managing Your Career as a Contract Employee
Getting Started
The term work portfolio was coined by Charles Handy in his book The Age of Unreason. Portfolio means of a collection of items contained in one place, and used in relation to the new approach to working, it means that an individualrather than having a linear careerhas a collection of careers or occupations, linked by a golden thread of transferable competence. Portfolio working has advantages all round. Employers are able to reduce their overhead costs for full-time employees and still retain a flexible resource pool of talent; individuals are able to seek employment from more than one source, develop a wide range of transferable skills, and assume a greater responsibility for managing their work/life balance. Management of ones contract career, then, is mostly about how to conduct business as an independent contract employee.

FAQs
I like the pattern of working by day and relaxing by night. Doesnt the burden of being a contractor lie heavily on your shoulders 24 hours a day? Managing your career as a contract employee demands a different mindset. Instead of compartmentalizing life into blockswork and non-work, day and night, and so on you need to create a more fluid model that allows you to move smoothly from one mode to another. Try making the mind shift that accommodates more rather than less. Your attitude may be holding you back. I can see that contract working may be the way of the future, but I dont want this personally. Can I avoid it? You may not be able to do anything to prevent it. In truth, whether you are an employee or a contractor, organizations expect you to develop your talent, stretch your capabilities, and take on more diverse responsibilities. So it is in your best interests to keep up to date, learn new skills, create a strong network, and maintain visibility. Then, whatever happens, youll be more flexible, and more valuable to the organization as a result. It is also important to be positive about itat least to your employers face. I have been a contract worker for several years, but have now been invited to join an organization full time. Should I make the transition? You may not realize how accustomed you have become to the freedoms of this work arrangement. Ask yourself what advantage it will serve to move back into full-time employment. If it is for stabilityand you are certain that the job has a good chance of remaining permanentperhaps it is a good move for you. Likewise, many choose
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to move back into a full-time job because of valuable employee benefits packages, which can include health insurance, retirement benefits such as a 401(k), and even stock options.

Making It Happen
Understanding What the Portfolio Can Mean The linear, progressive career is becoming rare. It may remain an option for some, especially those working for long-established, global businesses, but a far greater number of professionals will operate around the periphery of such organizations, dipping in and out according to the needs of the business. There are advantages and disadvantages to this. Contractors will be more versatile, and therefore more independent, but they will also be the biggest risk takerstheir success (or otherwise) being based not just on skills, but also on their ability to market themselves and juggle a number of different clients or projects simultaneously. A person pursuing a career as a contract employee needs to focus on the following. Paid Work A contract employee must approach work as an entrepreneur. Finding your next paycheck is entirely up to you, based on more than just your core competency. Understanding how to position and sell yourself is all part of the game. You may be fortunate enough to have gained your expertise with one organization, and still be able to work there when you are no longer a full-time employee. However, it is always wise to reduce your risk of unemployment by marketing your services to other companies at the same time. Perhaps this means packaging and branding yourself slightly differently, targeting organizations that may need your skills in a somewhat different capacity. To prepare for this, you must begin to think of your experience and skills as having immeasurably more potential to clients than before. Build up your feelings of worth to others. Common sense itself is all too scare a resource. When you add to that your skills and capabilities, you become an individual with great value to clients. But remember, too, to be realistic about what you can promise, and always try to deliver more than seems necessary to satisfy the client. Charitable or Pro Bono Work Not all of your work will fall into the paid category. For example, you may be asked to give advice or submit a proposal to a company that doesnt yet have room to hire you. Or, you may decide to work for a charitable organization. Just because you are not getting paid doesnt mean that doing the work is not valuable. It places you in a new environment, raises your visibility, and develops a new network of contactsall of which will broaden your field of operation, and may lead to paid work in the future. Learning and Development If you are to flourish as a contract employee, you will need to transfer your core skills into different companies and industry sectors, to avoid having too narrow an expertise or skill base. Staying current is your responsibility. Find ways to stimulate your interests and gain expertise at the same time, then make it translate into more value when you apply for work. Self-motivated study may take dedication and commitment. However, there are ways of making this more rewarding by joining study groups,

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forming self-learning circles, or attending courses and conferences where you can mix with others from similar backgrounds. Creative Work Involving yourself in some sort of creative activity is necessary to keep balance in your life, as it enables you to freewheel for a while. Very often, by letting the mind rest, you can find a wealth of new ideas that were previously hidden by logical thinking. Creative outlets can include: sport, artistic pursuits, a hobby, film, theatre, reading, travel, or listening to music. When you emerge from your creative detour, you will feel much refreshed and ready for the next challenge. Many people become contract employees after being fired or laid off, which often creates fear and resentment. However, with a little courage, self-discipline, and some careful planning, this can lead to a life rich with choices, opportunities, and the rewards of being self-sufficient. And once you experience the freedom and flexibility, you might never go back to traditional full-time employment.

Common Mistakes
You Dont Plan Your Time Well Enough Many people, when they become a contract employee, spend too much time on each separate contract or project. They also forget that about 25% of their working time should be spent on client relations (making sure theyre happy), networking and marketing (to assure future earnings), and administration (their own billing and paperwork). Organization is essential. Draw the elements of your workload on a large piece of paper, and plan the number of hours that can be spent on each. How you split your time, logically, depends on the percentage of your income derived from each client or project. But some clients will represent a larger potential future income than others, and so you will sometimes need to spend more to earn more. You Dont Know Your Own Worth People are often diffident about charging enough for their work. However, it is important to represent yourself confidently and ask for a fee that is in keeping with your market value. Find out what other people charge for similar services. If you have demonstrable skills that are in high demand, feel justified in charging the top rate. However, if you are new in the marketplace and have more established competitors, you may wish to charge less to begin with, as an incentive for organizations to hire you. After you become well established in the field, you can begin to raise your fees. Your Boundaries Are Not Clearly Defined You need to be clear about exactly what it is you are offering to the market, even where the lines between your different skills and competencies may be somewhat fuzzy. Confusion in your own mind will be passed on to potential clients, who may not then know how to deploy your skills. Try to keep the different areas of your portfolio well defined so that you can send a clear message. You Jump in Without Doing the Requisite Market Research Lots of people become contract workers as a result of a particular opportunity with one organization, perhaps a former employer, but very probably, the opportunity will eventually disappear. If you havent taken the time to research other prospects, you
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BUSINESS: The Ultimate Resource

April 2003 Upgrade #7

could find yourself out of work with no place to turn. Always try to plan for the next opening before you need it. Think of yourself as a company, and treat your varied skills as distinct products and servicesyou will find it easier to sell yourself to other companies. You should also know who are your competitors and be able to compare and market your skills against theirs.

For More Information

Books: Anderson, Sandy. The Work at Home Balancing Act: The Professional Resource Guide for Managing Yourself, Your Work, and Your Family at Home. New York: Avon Books, 1998. Florzak, Douglas. Successful Independent Consulting: Turn Your Career Experience into a Consulting Business. Chicago, IL: Logical Directions, 1999. Fortgang, Laura Berman. Living Your Best Life: Work, Home, Balance, Destiny: Ten Strategies for Getting from Where You Are to Where Youre Meant to Be. Los Angeles, CA: J. P. Tarcher, 2001. Handy, Charles. The Age of Unreason. New York: Arrow Books, 1989. Needleman, Jacob. Time and the Soul: Where Has All the Meaningful Time Gone? and How to Get It Back. New York: Doubleday, 1998. Web Sites: The Contract Employees Handbook web site: www.cehandbook.com The Employerhow to become an employer of home workers: www.homeworking.com/employer.htm The Professional Association of Contract Employees: www.pacepros.com Telecommuting 2000: www.flexibility.co.uk/telecommuting2000/tc2006.htm Teleworking: www.eto.org.uk/faq/faq03.htm

Bloomsbury Publishing Plc 2003