The Australian Bureau of Statistics estimates that there are now 1 million Independent Contractors[1], representing 10 percent of the total workforce in Australia. It’s a significant, growing sector and one in which the IT profession figures strongly.

The decision to become a white collar contractor (referred to as Independent Professional or IPro by Entity Solutions) can be exciting and scary. Exciting because of the appeal of becoming your own boss – work for a living and do not live to work, work when you want, where you want and for whom you want. Scary because there is no financial safety net or guaranteed monthly pay packet.

IPros are responsible for sourcing and retaining their own clients. They have to manage all aspects of their business from contract work through to their own administration and invoicing.

Our last blog post described the benefits of being an IPro, however it’s not an arrangement suited to everyone. Before you commit to life as an IPro there are 4 things you must first consider:

• Making the decision
• Personality
• Clients
• Keeping up your contacts

In this blog post, we will share with you the first two areas.

Making the decision

Why someone chooses to become an IPro is often thought to be a question of: were they pushed or were they pulled?  Is the rise in IPros due to retrenched professionals turning to contracting when they can’t find another full time job or are the lures that strong?

According tothe IPro Index 2010 survey conducted by Entity Solutions and Monash University involving 372 Australian IPros, it’s resoundingly the latter.  IPros choose to engage in professional contracting because of the sense of freedom, variety of work and perceived ability to earn more. Push factors such as being laid off, fear of job loss, difficulty in finding work and the tight labour market play no role for the majority of IPros.  This is important because it means that IPros begin their consulting life with positive expectations.

If you are considering becoming an IPro it may also ease some of your concerns to know that this positive attitude is a feeling that lasts. The overwhelming majority of IPros are happy with their decision. Results show that 84% of IPros are satisfied working as an IPro and 88% are satisfied with the kind of work that they do.

Personality

The survey also shows that IPros tend to be proud of their work. They feel happy when they are working intensely, are enthusiastic and energetic. These are all signs of people who are matched to the right job. Their sense of personal wellbeing is high and this is no doubt an important contributor to their job satisfaction.

The independent way of working inevitably helps to build confidence. A high 97% of IPros feel they are prepared for most of the demands in their jobs and 99% are comfortable that they can usually handle whatever comes their way.  It’s a career choice that helps to develop highly competent and self aware individuals.

In the next blog, we will share with you the two remaining points to consider before committing to life as an IPro:

• Clients
• Keeping up your contacts

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4. Things you should know before committing to life as a contractor (Part 2 of 2)

So, you are contemplating becoming a white collar contractor (referred to as Independent Professional or IPro by Entity Solutions). In our last blog post, we outlined two areas that you should consider: Making the decision Personality In...

3 Comments for 3. Things you should know before committing to life as a contractor (Part 1 of 2)

Matthew Franceschini

Hi Stephen,

Thank you for your comment.

You have made a very relevant and valid point. The context in which ‘full time’ is used within this article is used as a term to distinguish between a contractor (with their working hours as agreed in their contract with their client organisations) and a permanent full time employee (who conventionally works Mon – Fri, with set hours). Again this can be left to interpretation with the introduction of benefit schemes implemented within some organisations, such as flexible working hours etc. However, in relation to the contracting space, you are correct in saying that ‘full time’ indeed relates to contractual hours as opposed to the method or capacity of employment.

Whilst we agree with your comment that sometimes contractors (referred to as Independent Professionals/IPros by Entity Solutions), might take longer than their finances can allow to land their next role, the same applies to other forms of employment (i.e. permanent employment).

We agree with you that a proper role/personality and desire matching needs to happen in order for the contract relationship to be successful. According to the IPro Index 2010, IPros generally feel that their current client organisations value their contributions and cares about their wellbeing. The results also confirm that many IPros do in fact, experience a sense of commitment to their current client organisations. This is a very pleasing result for organisations engaging the services of IPros and suggests there may be potential for a reassessment as to just what the client/IPro relationship can deliver. The ability to predict a positive matching of IPro and client goals is a key aspect of this result.

From our experience, IPros are engaged by organisations in multiple roles and in multiple phases of various projects.

Matthew Franceschini, CEO, Entity Solutions