KEY POINTS:
In the present economic environment, businesses are contending with numerous employment headaches, including headcount freezes, serious skills shortages and the constant threat of employees electing to decamp overseas where the markets are likely to be more lucrative.
Add having to pander to the notoriously fickle Generation Y to the mix and you can see why business leaders are increasingly turning to executive contractors to fill the gaps.
There seems to be a degree of confusion in the marketplace as to what constitutes an executive contractor. A common perception is either of a "corporate mercenary" who is dropped into an organisation to carry out a specific project and then makes a quick getaway, having disassociated themselves from office politics; or an "overpaid temp" who is little more than a "fill-in" while a permanent replacement is recruited.
In truth, executive contractors are often expected to drop into an organisation in order to carry out a specific project where the requisite skills may be hard to find and no existing permanent employee has these skills. It may also be due to parental leave cover, whereby the permanent employee is returning but a contractor is brought in to cover the role.
Flexibility is required on the part of the contractor as the exact return dates of the employee can often be indeterminate. Contractors are also brought to cover the interim period when a permanent employee has left the business and a replacement is being sought.
The myth of contractors being overpaid is exactly that: a myth. These people are often requested by an organisation at the last minute with little notice and are expected to "pick up and run" with the work and the environment almost immediately. Sometimes, little guidance or training is given to contractors - thus they need to be fully confident in their ability to carry out the role.
Contracting really is a lifestyle choice for some people. In some instances, the contractors may own their own businesses but are only involved in a passive way and are thus looking to "keep their hand in" at an operational level. There are mothers who only want to work for six months a year and spend the rest of the time with their family. In some instances, contractors take the summer off. These individuals tend to be well-qualified and experienced, prepared to work hard during the rest of the year but then pursue other interests in the summer months.
Contractors are increasingly being seen as a viable choice by companies if the particular skill set is not being found on a permanent basis. A company still has to get the work done and hiring the wrong permanent employee can be a big and costly mistake. Contractors are brought in for either a set or estimated period of time to fulfil the need. They are often more qualified for the role than necessary but organisations can see this as a true asset as they can give the contractor other projects and work.
Good contractors are likely to find themselves turning down contracts as so much work is being offered to them in this market. However, the saying "you're only as good as your last contract" is true and the market will quickly discover who the fantastic contractors are.
There are many contractors who have worked this way for years and move from one contract to the next successfully.
A good contractor is someone who is sufficiently flexible to be able to fit into any organisation (they can work in a blue-chip multinational in the city just as easily as a manufacturing environment on the city fringe), or someone who at least knows what the best "fit" is for them.
They must have a sound grasp of their skill base and abilities and be prepared to adapt as the working environment dictates. They always need to be mindful that they are being paid to "get the job done" in the best and most accurate manner for the organisation.
A contractor should not even contemplate getting involved in office politics. If their recruitment consultant is doing their job correctly, they will also keep in touch with the contractor so that any issues are dealt with immediately and not blown out of proportion.
Contractors are brought in for a particular reason and are often expected to work a full 37-40 hour week or more, so this could prove difficult if people want more flexibility. It is, however, highly unusual for contractors to be expected to "take work home" as is often the case in a permanent role, which could be a distinct advantage.
Contracting can be a great decision for candidates returning from their OE. Rather than jumping into a permanent role, a contract can allow candidates to "test the water" while giving them time to look at the market and the range of positions being offered.
This ultimately means they will not make the wrong decision when they take that permanent role.
It is an obvious choice for companies to use contractors if they have uncertainty in certain divisions or have permanent staffing issues.
With the market experiencing an acute shortage of top-quality candidates across all disciplines, I see no reason why the contracting market should not continue to grow.
