Independent Contracting, or "Hey, Do You Want Help With That?"

I've just had an enjoyable session of applying for job positions. Huh? Yes, generally that activity ranks right there with getting a physical examination - you know its good for you, but you feel vulnerable & exposed. In this case, I was applying for open independent contracting positions. My mindset was completely different than in the prospect of applying for a permanent position with a company. I felt more like I was offering my services rather than trying to convince a prospective employer of my professional worthiness.

Why would a company prefer to contract to an individual rather than work with a staffing or consulting company? Having been on the other side of the fence in a consulting (or staffing) firm, the following comes to mind:

• The hourly fees for an independent contractor is a mere fraction of the fees charged by consulting/staffing firms. The reason for this is that basically no one but the independent contractor is making money off the actual billable labor. There is not an Associate Director, Director, Partner, and Senior Partner trying to get a piece of the action.

• The project requirements have already been scoped and budgeted; unsolicited offers for further or additional services are not welcome. Typically a consulting firm will use the opportunity of being "in" on a client to try to expand their presence there through cross-sales.

• The hiring company has greater control over selection of individuals who will be involved in the project. When a company contracts with a consulting firm they may be assigned personnel rather than being able to choose them.

Independent contracting appeals to me because I can throw my name in the hat for only those projects that I find interesting. In most cases, the hourly fees and project length are clearly stated in the job postings. The idea of each job being incremental and self-contained is a plus - it's hard to get bored or in a rut. I could also choose to take mini-breaks in between all engagements rather than have a paltry two, three, or four weeks per year vacation.

Obviously the down side would be the unpredictability of landing a contracting job and therefore, the intermittent nature of earning an income. This downside is shared by most commission-based salespersons or service-based business owners. Again the draw of being an employee is not having to constantly market oneself and generate income opportunities. In exchange for limited risk, one gets steady, though limited, pay. With risk, comes some upside potential.

"So, you're an independent contractor. How nice." For some people this can have a negative connotation for being unemployed. For me, being one rung above Maslow's Esteem Needs, I am not perturbed. Though we shall see whether six months from now I take a few steps down from my lofty position.