Working sustainably from the start and planning your finances are two of the tips from Cool Company to professionals who are starting to look at contracting as an alternative to working as an employee. Although the labor market has been severely affected by Covid-19, the contract profession is still strong.
The road from employment to contracting life does not have to be so difficult and, many have succeeded even though Covid-19 has had a significant impact on the entire labor market. But when you look at the contracting market, certain areas have seen increased activity. Our data shows that contractors in the IT and administration industry have seen an increased requirement for services
Industries that are often associated with contractor and consultants appear to be the safest areas to turn to. “But we are seeing more and more professional areas opening up role for project-based contractors,” says Matilda Konkell, communications manager at Cool Company.
Changing the form of employment as an alternative to changing occupations
Leave, and layoffs have affected many, however, for those who want to remain in their profession. It may be an alternative to change from employment to contracting rather than of changing occupation.
Changing the form of employment instead of completely changing profession can be a very good alternative in conditions like these. But you must think about finances, to make such a move will require a buffer to cover current financial commitments (rent, food, car etc).
“It may be an alternative to change from employment to contracting rather than of changing occupation.”
Here are our five tips for those wanting to start contracting
Build yourself and your network
When you want to venture out into the contract market, you need to be able to showcase your skills and find out who to show it to. Think about your USP (unique selling point), your resume and/or portfolio. Social media, apps, and job networks online are great for starting to build your own network and letting potential customers know that you are on the market.
Planning your finances
When you take the step into the contracting world, there are some pieces that you need to think about. If you start your own business, you need to make sure that you set aside money for, among other things, pensions, insurance, holidays and benefits.
Know your value
Putting a monetary value on your own time can be difficult. Map your experience, do research and ask around in different networks to create a picture of what fair market value looks like. It’s not about overcharging, but rather about getting paid the right amount for the services you provide. Getting this right will make all the difference in your contracting journey.
Have a buffer
When working as a contractor, salary and workload can vary. Similarly, depending on the payment terms, it may take some time before the payment arrives. Make sure you have a financial buffer so you can feel safe even when you have some air between assignments.
Work smart from the beginning
It doesn’t matter if you are an employee or contractor, you need time off to stay productive in the long term. Plan your time well so that you do not work too much and ensure a work life balance. Last but not least – don’t forget your vacation.
Occupational areas where contract and consulting jobs grew during the month of May *
- Consultant in IT / Data
- PR consultant
* Based on invoicing statistics from Cool Company for occupational areas that had the largest percentage increase in invoicing value in May 2020 compared to May 2019.