Nerd Life Employment

How do you want to work?
by Karin Call
October 30, 2000

The distinctions between the consultant, temporary, and permanent worker

As an IT professional, you are in the unique position of being able to choose not only where you work, but also how you want to work. It's not a simple decision. The boundaries between being a consultant, a temporary worker, or a permanent employee tend to be blurry at best. The following information can help you determine your preferred employment style.

The Consultant, Contractor, and Freelancer

There are as many terms for the consultant as there are defining issues. While digesting the following information, think about whether it throws you into a panic attack or makes you euphorically happy. If you feel good, chances are, you are a natural born consultant.

Consultants

Consultants are hired by companies to perform specific services for a specific length of time. If you don’t have an end date or a specific project completion schedule, you really aren’t a consultant.

You have to find your own jobs. Exciting and lucrative projects don’t necessarily fall into your lap. You must be able to market and sell your skills in order to get these projects.

It’s absolutely necessary to be self-motivated. If you easily lose sight of your goals, consulting may not be the way to go. Does this scenario sound familiar?

In the morning you log on to the Internet with the purpose of emailing information of interest to your client. But before you know it, the sun has set and you’re starving, having missed both lunch and dinner. Not to mention the fact that the information was never emailed.

Getting sidetracked happens as a matter of course for some people. But it should not be the norm.

Are you a clown? Or at least a skilled juggler? You should be. As a consultant, you’re the bookkeeper, tax accountant, marketing and sales director, project manager and the person charged with completing the project. It can be a Herculean challenge keeping all those balls in the air.

Remember, that no matter what rates you charge, you’re probably still cheap. Most employers like the fact that they can hire a consultant on an as-needed basis. There is no overhead for them, unless you work on-site. Nor do employers have to worry about withholding and paying taxes, social security and Medicare, or even unemployment taxes. What a deal. The downside is that you need to worry about that and build that into your rates.

Are you picky? That’s quite all right, if you are a consultant. If you are successful, you can turn away the mundane and otherwise boring work. Go ahead and retain the plum projects and thumb your nose at the rest – privately and without offending anyone. It doesn’t pay to burn bridges after all.

Do you find yourself geeking out on the computer at odd hours and sleeping during the day? As a consultant you certainly have the flexibility to set your own hours. But if you want to make a favorable impression, then you darn well better get the job done on time. Or better yet, finish before the deadline.

Temporary

Do you need more time to pursue an advanced degree or certification? Do you want to get out of that stressful corporate environment? Generally a temp worker is called in to cover for a person on maternity leave, sabbaticals, or for specific, one-time projects. There are obvious similarities between a consultant and a temp worker, but there are definite differences too.

Did a staffing agency hire you? Generally speaking, a staffing agency is the key to defining yourself as a temp as opposed to a consultant. The agency is responsible for keeping the assignments coming. You don’t have to search the wild blue yonder for your own projects. Plus, many times, benefit packages are offered, too. But naturally these services are not free. That will be blatantly clear upon receiving your first paycheck.

Agency loyalty is generally low and turnover is high. If the temporary assignment is over, and nothing else is immediately on the horizon, workers tend to move on to another company. Unless of course, you want the time off to finish building that fast-as-lightning new computer - and made enough cash on your last assignment so that you can afford to drop out of the workforce for a bit. It’s your choice. That’s the beauty of temping.

Are you a night owl? Generally the company requires that you work the same set hours as their other employees and do it on-site. Unless, of course, they have been made aware of your genius in the IT area. With a special, desperately needed skill set, you may be able to negotiate more flexibility with your daily schedule.

Permanent Employees

Since the lines can be hazy, the IRS uses guidelines to help distinguish employees from contractors. For instance, if an employer tells a worker when and where the job is to be done, that is an indication of permanent employment.

It’s a matter of control. For example, a permanent employee is specifically instructed how to complete a task by the company. A contractor is given the project and may pursue the work any way they darn please. No one from the company is assigned to train a contractor.

How are you getting paid? Many permanent employees are paid hourly, or are on salary. But a contractor is paid by the job. Or an estimate for a project is written detailing the hourly or daily pay, which ends upon project completion.

Final Words

Master your own destiny. Decide if you would like to spend your life being a consultant, temporary worker or permanent employee. It may even be in your best interest to overlap. Many IT professionals, who are commonly known for their unbelievable stamina and strong work ethic, are able to hold down a permanent job and consult on the side. As long as it’s not a conflict of interest, of course. You are the supreme judge of your personality and preferred work style. Now that you are loaded with information, it will be easy to choose what’s optimal for you.

Go make yourself happy.