Contingent Work by Mark Stone

July 2023. I've spent years as a contractor, and also built vendor management programs for handling contractors.

Contracting presents challenges and opportunities for both organizations and contractors. Pitfalls for the contracting organization include

  • Ratio of ramp up time to productive time
  • Barriers to contractors fully participating in company culture
  • Employee anxiety when headcount goes to contractors.

Contractor challenges include

  • a sense of isolation;
  • job security risks;
  • financial challenges due to limited benefits.

To ensure success, all parties must view the relationship as a partnership, not a transaction. The agency must understand the customer's culture and prioritize culture fit over mere skill checks. They should also encourage contract-to-hire opportunities to attract high-quality contractors.

For the contracting organization, flexible staffing offers a hedge against uncertainty and access to specialized expertise without permanent hiring.

For contracting organizations, transparency and fairness in contractor treatment are crucial, including agency rates versus contractor rates, contractor benefits, contract-to-hire policies, and agency diversity and inclusion measures. Prospective contractors should also seek transparency from agencies and ensure alignment with their professional growth goals, and to ensure that compensation and job security risks are understood.

In difficult economic times, contracting is an option for those "open to work". Do so thoughtfully, and in a spirit of partnership with the other parties in the relationship.

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