While more professionals than ever before are swapping their permanent positions for contracting work, not everyone will last the distance. Despite the many benefits of contracting, which include increased earning potential and flexibility, the role of a contractor can also be stressful and lonely. Before jumping ship, those considering contracting should inform themselves about the reality of what it involves. In this article, Umbrella Exchange considers what it takes to make a good contractor.

• Flexibility

Many people go into contracting believing it will give them greater control over their working schedule and the freedom to prioritise what’s important to them. While this may be true, many people don’t understand that achieving a flexible work schedule involves give and take. Contractors can choose the hours they work, but ultimately they must finish the project on time, or risk financial implications. This can involve working anti-social hours and late nights to bring an assignment in on target. Similarly, contractors can pick and choose the contracts that they want, but in order to meet their financial responsibilities, they will need to maintain a steady workflow. This could mean taking some projects simply to fulfil their budgeting needs.

• Resilience

Going into contracting means going in alone. It’s essential that contractors have the confidence and self-belief to keep themselves motivated, especially when things go wrong. Employees have a support structure in the form of HR and their colleagues to turn to when they’re facing difficulties. Contractors, on the other hand, must learn to problem solve for themselves. From setting their own schedules to working away from home, contractors need to be able to take these things in their stride. It’s also the case that contractors can’t sit back and wait for the contracts to come to them. Being a contractor means being proactive about finding new assignments and pragmatic when it comes to getting knock backs.

• Focus

While many people like the idea of being their own boss, the reality of having to think about everything can be difficult. Contractors working through their own limited companies also have administrative responsibilities associated with running a business on top of doing their contracting work. This can mean anything from completing VAT returns and filing statutory returns to dealing with the practicalities of addressing complex legislation such as IR35, which demands discipline and organisation. There are various support services that can help contractors with the financial and legal aspects of contracting, such as Umbrella services or specialist accountants. However, a contractor will still need to be the kind of person who can juggle several things at once.

• Risk tolerance

While we’ve touched on resilience and self-reliance, there are certain things that are beyond a contractor’s control. Downturns in the market could result in fewer jobs, and contractors will often be the first people to be let go by organisations. Not only must contractors work without the security of a monthly pay cheque, they must also bear the personal risk of being in business on their own account. Contractors receive no employment benefits such as sickness pay or holiday pay, and must also make their own pension provisions. Limited company contractors will also bear financial and legal responsibility for their business, including any losses.

• Networker

The importance of networking is becoming increasingly apparent across all sectors, and contracting is no different. Even if contractors work via an agency, networking is crucial in building up their professional reputation and keeping informed of opportunities. An increasing amount of networking is done online through sites like LinkedIn. However, face-to-face networking is also important and contractors should take the opportunity to network ‘on the job’. Making positive, lasting impressions while working on an assignment can provide contractors with future referrals and the opportunity for repeat work. Acting in a friendly, professional manner and developing good communication skills will improve your networking ability, as will a strong online presence.

• Expertise

Ultimately, contractors need skills and expertise that are in demand. Unlike employees who might be hired for their long term potential, a contractor’s value is their ability to solve a certain problem for the client. Without the right skill set, even the most dedicated contractor will struggle to find work. Not only do contractors need specific industry knowledge, in order to win the best contracts, they also need to be at the top of their game. This means taking the initiative to continually develop their skill set so that they can throw their net wider. Experience of successfully applying their skills is also important. It’s this unique combination of attributes and expertise that will add value for the client and keep the contractor in demand.

For information on the full range of contracting services, speak to a member of our team on: 0203 393 3881