- Automotive. The U.S. will be short approximately 642,000 automotive, diesel, and collision technicians by 2024 if current trends hold, according to a new study by TechForce Foundation.
- IT & Tech. The latest U.S. labor statistics indicate that IT saw 1.4 million unfilled jobs at the end of 2020, with only 400,000 qualified candidates graduating each year.
- Financial Services. According to Cerulli Associates, retirement is on the horizon for the majority of wealth advisors, as the average age is 51 and 43% are over the age of 55. In contrast, just 10% of wealth advisors are under the age of 35.
Wage & compensation increases.
Generally speaking, highly skilled contractors can receive greater compensation than those who choose a standard career path. Because employers aren’t on the hook for paying for taxes or benefits, they’ll often offer a more competitive wage. And since contractors have to pay a self-employment tax and cover their own benefits, they’ll demand that higher wage as well. In many industries, especially automotive, engineering, IT, and finance, there’s another factor at play: the temporary nature of contract work. It’s common in these industries for employers to look for experienced leaders with deep expertise and leadership to shepherd temporary (e.g. 12-24 month) projects. However, because they can’t guarantee additional work after that, they’re willing to pay a premium to attract highly competitive talent. Finally, because contracting consists of an hourly rather than full-time wage, there’s a strong possibility that you’ll be working some overtime hours. All in all, the financial bottom line of working as a contractor is very positive for experienced professionals, which is why you should consider it as an option for your next career step.Direct hire roles aren’t inherently more stable.
One of the common objections to contract roles is that there’s a tremendous amount of direct hire opportunity out there that you’re competing against. Many roles seven to eight years ago that were exclusively contractors are now direct hire. For candidates, there’s a clear reason why a direct hire role beats a contractor position: direct hire roles provide career stability, while contractor roles do not. But the numbers just don’t bear that out. According to the Bureau of Labor Statistics, the average tenure of a full-time employee in a given job was 4.1 years, as of January 2020. Given the massive hits that companies took post pandemic, we can probably safely assume that this number is much lower now. And according to our own research here at Brightwing, 54% of the professionals we surveyed believe that job security is either rare or a myth entirely. The point is: a full-time, direct hire role isn’t going to provide the long-term security that you’re looking for necessarily. So that should be enough to at least keep the possibility of working as a contractor open.Contracting may lead you to your dream company.
If there’s a certain company that you really want to work for, contracting may be the best way to get your foot in the door. Although many companies are shifting to more direct hire roles, there are still a number of benefits they get from hiring contractors:- A test period to make sure that they’ve brought on the right person before making a long-term commitment
- Fewer costs (training/onboarding, benefits, unemployment, etc.)
- Flexibility (on both sides of the equation)
- A development period to see if a candidate can grow into a particular role if they’re short of a few skills
Final thoughts: You’re not in this alone.
Before we wrap things up, it’s important to note the main reason that people take a full-time role: the benefits. Indeed, although there are plenty of compelling reasons to go out on your own, it’s hard to turn away the health insurance, vision, dental, vacation time, 401k, and more. That’s one of the reasons that Brightwing works to provide that necessary support to our contractors. If you work with us, we provide all of the necessary benefits so your life can remain on solid footing. On top of that, we also have people actively searching on your behalf for new opportunities. So when one contract comes to a close, you’ll have another one teed up and ready to go.let’s talk
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Contracting in the Modern Economy
In the modern economy, contract work is just as reputable a career path as traditional employment; not just for the employee, but the employer as well:- Lower costs to train and onboard, as well as fewer fringe benefits
- The ability to test a candidate in a short time frame before making a full-time offer
- Flexibility (on both sides of the equation)
- Willingness to take a risk on a candidate who aspires to a higher position, to see whether they can grow into the role
Myth #1: Contracting is just for entry-level employees.
A number of companies use contracting or contract-to-hire as a way to test out entry-level employees before offering them a full-time role. Because of this, contracting sometimes has a reputation of being an exclusively entry-level option. But entry-level contractors make up only a segment of the broader contractor community. In fact, it’s common in many industries like IT, automotive, finance, and more for employers to look for experienced contractors with deep expertise, and even leadership experience. The major reason for that is: these firms engage in projects that are temporary in nature. They may need an experienced engineer to come in for 12 months to shepherd a project through to conclusion, but can’t guarantee more work after that. On top of that, experienced contractors generally get paid a higher hourly rate than a full-time employee, plus you have the potential to work overtime. So the financial bottom-line could be really beneficial to you. This is why it’s important to judge each opportunity by the specific role, company, and day-to-day work you’ll be asked to do, not whether it’s contract or full-time.Myth #2: Contract work is inherently unstable.
This myth stems from the idea that full-time employment provides more job security than a contract position. Unfortunately, this isn’t the case, especially considering that most full-time employment roles are entirely “at-will.” According to the Bureau of Labor Statistics, the average tenure of a full-time employee in a given job was 4.1 years, as of January 2020. Given the massive hits that companies took post pandemic, we can probably safely assume that this number is much lower now. And according to our own research here at Brightwing, 54% of the professionals we surveyed believe that job security is either rare or a myth entirely. The point is: a full-time role isn’t going to provide the long-term security that you’re looking for necessarily. So that’s really not a compelling reason to discount it entirely. On top of that, a lot of big companies use contracting as a way to test potential hires before offering them a full-time role. In those cases, taking a contract position is your surest path to a long-term career at that company. But even if you don’t end up going into a full-time position, that doesn’t mean that your income is going to be in a constant state of flux. We’ve worked with a number of contractors who’ve spent 20+ years working with Brightwing, whether that’s been with recurring projects at a single employer, or working with a number of employers over those years.Myth #3: Contracting won’t move your career forward.
Because most people refer to full-time employment as “career” positions, there’s an unfair assumption that contracting roles are the opposite. Nothing could be further from the truth. In fact, contracting could present an incredible opportunity to enhance your current capabilities:- Depth of experience. Contract roles are often more focused and project-specific than full-time roles, allowing you to focus on building skills in one specific area.
- Breadth of experience. When you work in a variety of contract roles over time, you can build up different experiences that you wouldn’t get if you stayed in a full-time position.
- Repositioning. You may have an array of experience within your particular sector, but maybe you want to take a different role than the one where you currently have experience. Taking a contract position can help you upskill and reposition your career without having to take a step back.
Myth #4: Contracting means you’re all on your own.
This is probably the myth that gets us the most fired up, because it hits close to home. Just because you take a contract position doesn’t mean that you’re left without anyone to support you. In fact, that’s exactly why Brightwing is here to help. We serve as a trusted partner to help you become successful in your contracting career:- We screen potential opportunities to make sure they’re a good fit
- We negotiate on your behalf to the client to get you the best possible rate
- We provide highly competitive benefits, as if you were our full-time employee
- We are constantly on the lookout for new opportunities before your current contract is up, so you shouldn’t have any gaps
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