So I’m nearing the end of my first contracting “gig” and I thought I would chat about what I like (and don’t like) about being an independent contractor (as opposed to being a fulltime employee).
OK let’s get the big one out of the way early and that is money. The money is better and this is because of a few things(Short Term Length, No benefits, No Holidays, No Training budget, etc) basically you are paid to come in, be an expert, get the job done, and leave. There are different situations that deviate from this basic mentality but generally this is the way of the contractor. Come tax time (if you haven’t gone crazy with the money coming into your company) you should be very happy with the results you see. My advice, don’t go cheap with your accountant just to save a few bucks… you get what you pay for.
So now that the whole money thing is out of the way let’s talk about “job security”. This is a subject that I’ve gone back and forth on in my mind (and in discussion with others) alot. I’ve come to the conclusion that the mentality of a fulltime employee thinking they have carte blanche job security is dangerous. The latest “recession” has proven that even as a fulltime employee you can walk into work one day and be called in for that dreaded meeting where you’re told that they are downsizing the team to cut costs and that your services will no longer be required. It happens… I don’t know how many Tweets I’ve seen from (seemingly highly skilled) people indicating that they had just been laid off and are looking for work. Now with that being said it is “easier” to cut contractors than to lay off fulltime employees but it also easier to get short term budget (contract dollars) rather then getting a new FTE (full time employee) approved.
Let’s talk about free time now. I defintely noticed that the amount of free time that I have to spend with family and friends has gone down a bit since becoming an independent contractor. This is partially my fault as I tend to take on more work then I probably should but aside from “real work” there are things that you need to concentrate on more (and NOT get paid for) as a contractor then you would as a fulltime employee. Things like self-training, the company’s accounting/books, deciding on the next gig, and building your brand are all things that are on your dime and you need to make sure that when you set your hourly rate that these things are factored in. Most of my friends are fulltime employees and they tend to do most of these things as well, but there are definitely a group of people in the industry that believe that they shouldn’t (and don’t want to) spend any of their own time/money in improving themselves professionally. I’m not saying this is wrong but if this is how you think then independent contracting might not be for you.
Something else that I immediately noticed with being a contractor is my desire to “build my brand”. I started this blog, started writing articles, joined Twitter, (going to be) working on the DBA Abstract Selection team for PASS, and also started the Edmonton Chapter of PASS. In doing all of this I hoped to get my name out there and become a strong voice for SQL Server in the IT community. I’ve really enjoyed becoming a more active member of the SQL Community rather then just a voyeur and as a side benefit I think my involvement gives me an edge that would set me apart from other contractors of equal skill bidding on the same gig. It’s amazing the number of experts out there in the community that just love to shoot the shit chat about SQL Server. Contractor or not… get involved in the community!
Anyways… as with most of my articles this was just random thoughts and today it happened to be about something other then SQL Server. I’m not trying to “sell” the idea of being an independent contractor I’m just discussing my personal experiences and I understand that those experiences might not be the same as others. I’ve really enjoyed being an independent contractor (so far) and am glad that I’ve made the switch. The hours and amount of work has definitely increased but the professional satisfaction is amazing and is something that I hadn’t experienced in my previous 11 years as a fulltime employee.
Next article will be about my abuse of (brackets) and “quotes” as I tend to (over)use both quite frequently LOL
Enjoy!!
Nice post. Certainly contracting isn’t for everyone. I think you need to be more disciplined financially because you don’t have that regular paycheck that you get as an employee. I did contracting for a year or so because I was laid off and, to be honest, if I ever leave NTM, I’d prefer to contract. Here’s a link to the first of a 3 part blog series by Wes Dumey on 1099 vs. Employee that I thought was excellent, http://thedamndata.blogspot.com/2008/06/great-debate-employee-vs-consulting.html
Yeah I agree with Jack that contracting is not for everyone and I constantly get pressure from these people saying you should go contract, it’s so much better, blah blah blah. I’d say that’s the one thing I’d hate about the contractors out there that are your friends. They tend to bug you the most
Not naming any names 
and you guys know who you are.
I personally have thought about it I can say it’s not for me. For one, I don’t want to work the extra hours that tends to come with contracting. I also don’t want to be responsible for every single second I work. I like the freedom of getting paid to take my 1 1/2 hour lunch or leave work early on Friday and go drinking with my co-workers and get paid for it. Contracting, sorry you don’t get these privileges and you are accountable for every second you work. That’s also why I didn’t want to go hourly as your accountable for your time.
I agree with you Colin on the fact you have to actually pay out of your own money to get yourself going and all that. I’m cheap and I’m not one that wants to pay out of my own money. I also just don’t have the time or want to make the time to brand myself.
Anyway I’m glad you are enjoying your contracting career
All the best.