How Contingent Work Can Benefit You
by Jennifer Sedna
NelsonJobs Contributing Writer
A sought after workforce
Temporary, contract or contingent work is one of the quickest growing employment sectors in the job market today. With a wide availability and variety of challenging and professional assignments, contingent work has experienced a revolution in its image. Project-based and temporary work is less viewed as the only way for some people to find clerical employment, and is increasingly sought after by a variety of professionals and entry-level employees alike. Here we will explore some of the benefits of contingent work, and why more people are taking contract and temporary positions instead of regular, full-time ones.
Interim work between jobs
The most common reason people seek temporary employment is an unexpected lay-off. Being forced to take contingent work is not the best introduction to this market. However, temping has advantages that go beyond just making ends meet until you find your next full-time job.
With paychecks coming in from your temping, you are able to be more selective about taking long-term positions. Whether it’s the company that disinterests you, the type of work, or low salary, you are much less apt to take something you are not passionate about when you have a steady source of income. You also will not be forced to take a job that is a lower-level position than what you had before.
Sometimes you can gain experience that you wouldn’t otherwise be competitive for. Steve Israeli, laid off by Lucent in 2002, got his first chance to be a manager by working in a temporary position. Long-term temporary workers, such as Israeli, “enjoy the best of both worlds: they get the same benefits as full-time employees without feeling the need to give face time or flatter the boss“ says Jyoti Thottam, Editor for Times Magazine. Additionally, since it was a higher-level position, Israeli actually got better pay than his previous job.
Since you can be selective about the next job you take, it will prevent you from having gaps in your resume that can be scrutinized by potential employers. Experience you gain from temping will allow you to achieve the opposite; it can make your resume more robust if you take assignments that you have little or no experience doing.
Break into tough job markets
Depending upon the job market, it might be highly competitive to enter the field you are interested in. Educated yet inexperienced employees face a particular challenge for competitive positions. Since contingent work is available in virtually all fields, being willing to take a temporary entry-level assignment is a great way to gain immediate experience.
Taking a temp job is a great opportunity to learn more about the industry. You can gain experience for your resume and build your network within the field. Networking will allow you to hear about other openings and get advice on what companies and managers are great to work for. Additionally, if you make a good connection you can ask them to be a professional reference.
Working in the field will also allow you to gain perspective on where you want to focus your career. While your actual assignment may be narrow, you get exposed to what types of positions are available and what types of personalities excel in those positions. On the other hand, if you get an assignment that allows you to do a little of everything, you can figure out what you enjoy and are most interested in.
Take your new career for a test drive
Unlike your parents, and grandparents, you are more likely to change jobs if you are unsatisfied, or if just want to try something different. Indeed, the average employee will change careers approximately 10 times in their life before they reach the age of 40, according to a 20-year study done by the Bureau of Labor Statistics. Before making a big leap, or even a small one, you can take a temporary assignment to explore a completely new career, or a different position within the same field.
Temp-to-hire positions are an excellent opportunity to learn about the work environment prior to accepting a job. For this type of position, you get to work with your potential supervisor and determine if the company culture and management style meet your needs. It is also a great way to network and learn what coworkers have to say about the company as well as other companies you are considering. You can save yourself from committing to a full time position that is not the right fit for you.
Students and Generation Y
An increasingly high percentage of students seek contingent work during summer and
holiday breaks.
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“Working with Nelson during the summer will allow me to get extra cash.
More importantly, it will help me build my resume so I can get experience
while
allowing me to get a college education.” says undergraduate Alex K.
Many college students take internships during the summer and school year, which are in their very nature temporary. However, unlike many internships, you can earn a salary while you get real world experience in your field of study by temping.
Being a student isn’t the only reason younger employees seek contingent work. Increasingly younger employees, those born after 1979 (Generation Y) are less rigid with their careers than prior generations. A recurring theme about this generation’s regard to work is that they view their careers less permanently and more as “contingent work life” says labor researcher Damian Oliver. Generation Y workers organize their lives according to different priorities and are more comfortable changing jobs. They have been stereotyped as the “generation uninterested in a job for life” says Oliver.
Not ready to retire
Contingent work is now a great resource for those entering and exiting the job market. With baby boomers retiring, a talent shortage has caused many companies to seek retirees to supplement the workforce. Employers are looking towards the retired population to get “an economic return on the accumulated knowledge and skills of what might be called the young old” says Dan Kadlec, Reporter for Times Magazine, who predicts the idea will appear on the presidential trail in 2008.
As retirement age increases from 50 to 65, and even into your 70s, retirees can choose contingent work as a viable employment option. For the majority, seeking a way to supplement social security benefits is not the only reason to seek temporary work. After a few years of freedom from the daily grind, some find retirement to not be as fulfilling as they expected. It is also a great way to keep your mind sharp and active, essential for staving off age-related conditions and diseases.
Temporary executive positions are increasingly being filled by semi-retirees for the same reasons. Contingent positions are offered at the executive level when there is an unexpected opening (e.g. a CEO steps down), and for new or established companies that need help strategizing. In addition to the challenge and stimulation these positions offer, the pay can be quite attractive (in the thousands/day).
A path to career independence
Over time, employees have become more individualistic about their career. This is especially true with more emphasis being put on the importance of leisure and family time, for both women and men. More Generation Y workers will be entering the work place, so this trend will likely continue well into the future. With temporary and contract work lasting anywhere from a few hours to over a year, you are able to pick and choose exactly what works with life’s other demands.
The increasing labor shortage has only reinforced employees to demand the flexibility they need and desire. If their current employers can’t provide it, many people look towards contract work. According to the Bureau of Labor Statistics, this demand for flexible work arrangements and schedules is expected to continue rising.
The following statistic speaks to the fact that, for some, the independence contingent work offers far outweigh the benefits of full-time employment. A study by the Bureau in 1996 found that 9 out of 10 independent contractors—one of the largest sectors of contingent workers— said they prefer their temporary work arrangement over regular employment.
Employers needs vary
There are many reasons employees seek contingent work, to fulfill short-terms needs, and for some, long-term ones as well. While the advantages of temping have increased over time, the disadvantages are becoming less relevant.
Depending upon the industry, temporary work can pay better than regular full-time work. The tight market for talent will also help keep temporary wages rising in 2007, according to Irwin Speizer, editor for Workforce Management. In particular, shortages in the health care and high tech industries will keep overall temporary wages up.