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Addressing Contracting Fears and Misconceptions
Want to try your hand at contracting but fears and doubt are holding you back? You’re not alone. While contracting can offer numerous opportunities, such as flexibility, higher earnings, autonomy, and better work-life balance, life outside the traditional employment setup can sometimes be dreadful.
As a contractor, you might sometimes feel isolated, especially if you’re working remotely. You may miss out on casual chats with coworkers, team lunches, and even social activities.
But don’t back down; there are steps you can take to put you on the road to a successful contracting career, leaving your fears far behind you. In fact, a recent report from Upwork, shows that the majority (80%) of contractors surveyed are optimistic about their career choices and growth.
In this blog, we will uncover some practical steps to help you slay your contracting fears. We’ll talk about how you can take advantage of the current market demand and some strategies to grow your contracting career.
Job stability: Overcoming the fear of job insecurity
One common fear among contractors is the lack of security and stability. Many people looking to penetrate the world of contracting may wonder if they can truly rely on it as a long-term career path.
But what does stability really mean in a job? The answer can vary from person to person based on their priorities and needs. For many, stability means having consistent income, a steady stream of clients, or long-term projects.
In short, it’s about not having to constantly look for new jobs or clients, which can be exhausting and stressful. While it’s true that contract work can involve frequent job hunting, job security isn’t guaranteed in traditional roles either—like how many full-time employees got impacted by layoffs or company’s restructuring during the pandemic.
In uncertain times, companies often favour contractors because they offer more flexibility in their staffing. Businesses can hire contractors to meet specific needs without committing to long-term employment, allowing them to scale their workforce up or down depending on current demands. In fact, the contracting industry experienced significant growth during the pandemic, as many businesses turned to contractors to navigate the challenges they faced.
Job security can also be about being able to work on your own terms. According to a 2024 survey by MBO partners, 65% of contractors say they feel more secure working independently. This sense of security comes from having control over their schedules, choosing their projects, and setting their rates. Many contractors appreciate the freedom to decide when and how much they work, which can lead to a greater sense of job satisfaction.
As a contractor, you have to learn how to shift your perspective and grab the opportunities that can arise during challenging times. Instead of viewing contracting solely as a temporary solution, consider it a viable career path that offers flexibility and the potential for growth.
Why job stability is important for contractor
Who wouldn’t want a stable job? Most of us would agree that career stability brings a sense of peace of mind. For contractors, having steady work means they are less likely to experience financial stress, which can lead to better mental health and job satisfaction.
A study published in the Journal of Occupational Health Psychology found that job security is closely
linked to lower levels of stress and higher life satisfaction.
So, how do you demonstrate stability in the workplace? Where should you begin?
- Upskill
Companies are turning to contract workers because of their in-depth skills and expertise. If you want to stay competitive in the market, you need to constantly improve your skills and learn new ones. Consider attending workshops, online courses, or training programs that can sharpen your skills. This not only makes you more marketable but also prepares you for future opportunities.
Our 2024 contingent workforce experience survey reveals that majority of contractors globally believe their skills are transferrable across multiple clients. This means you can leverage your skills or new skills you acquired to retain existing clients and attract new ones.
- Get online
Getting in touch with potential employers has never been so easy as it is today, thanks to online contractor or freelancer-specific job boards and outsourcing platforms. Make sure to create a professional profile that highlights your skills and experience. Don’t just stop at job-specific boards; be active on professional networking sites like LinkedIn, which can be a goldmine for finding new contracts and engaging with industry professionals. You can share relevant content to showcase your expertise and attract attention from potential clients. - Network
Networking is an important skill to have, as it can produce many opportunities in your professional life. There aren’t a lot of successful people that made it to where they are without the help of a strong network of peers, colleagues, and other contacts. Whether it’s to help you score your next contract or simply to have some moral support as you progress in your contracting career, a strong network is never something to be overrated.
To start, you can join a community, such as Out of Office, and network with your fellow contractors and get access to global remote opportunities.
The key to long-term success as a contractor is to stay relevant. Keep learning and stay updated on the latest trends in your industry.
Stability in a job: Building a long-term contracting career
Building a long-term contracting career is more possible than ever. Today, organisations are constantly seeking contractors to fill highly skilled positions and perform strategic delivery roles essential to the business. As the gig economy continues to grow, many industries increasingly rely on contractors for specialised skills, making it a viable long-term career choice.
Contracting roles in areas like data analysis, software development, cybersecurity, and digital marketing are in high demand. There’s also a growing trend for positions in artificial intelligence (AI). For example, among our contractor population in Australia, there has been a remarkable 200% increase in AI-related roles.
To take advantage of this demand, there are practical ways you can start, such as building a strong personal brand. Your personal brand is like your calling card in the contracting world. Use social media or build your own professional brand to showcase your portfolio and expertise.
If you’re a software developer, for example, contributing to open-source projects or sharing your code on platforms like GitHub, can help you gain visibility and credibility. This way, you can potentially attract new projects and clients.
Treating contracting as a long-term career rather than a temporary position allows you to approach your work more thoughtfully. This approach helps you focus on developing and refining your skills while also building a solid client base. Here are a few principles to keep in mind:
- Be organised and disciplined
Being a contractor provides flexibility, but freedom can be a newbie’s worst enemy. It will be up to you to determine a schedule that works for you, then stick to it. Being organised and managing your time effectively will be helpful in monitoring your performance as well and ensuring you meet deadlines. - Plan ahead
Being your own boss, as an independent contractor, you are essentially your own HR department, with your career path in your hands. Look ahead and plan accordingly. This also applies to your finances. Forecasting can help you potentially balance out your workload over time and if not, it can give you an idea of how to manage your budget to get you through any dry periods. - Sell, sell, sell
As a contractor, you should aim to minimise the downtime between contracts and be at work when you want to and not when the market wants you to. Learning and applying sales techniques enhances your chances of securing a contract at the rate you deserve, even at a time when market demand slows.
Why job stability is important for financial planning
Given the nature of contracting, the fear of inconsistent income is always there. Some industries experience seasonal fluctuations in demand that can affect the availability of projects.
However, achieving consistent income in contracting is within reach with the right strategies in place. One effective strategy you can implement is to diversify your client base. Working with multiple clients reduces your dependence on any single source of income. This way, if you lose one or more clients, your overall income won’t be severely affected.
Securing longer-term contracts, such as retainer agreements or ongoing service contracts, can also provide stability and help you achieve a more consistent income.
When it comes to filing taxes, it can be far less scary for contractors than regular employees. As a contractor, you have more options in terms of how you get paid and what business structure you operate under. You can also take advantage of tax deductions not available to employees.
Embracing the benefits of contracting
Don’t let your fear stop you from embracing the multitude of benefits of contracting. With opportunities come great responsibilities. Instead of running away from contracting, start facing your fear head-on. Focus on upskilling, networking, and building meaningful connections while having a solid plan to success.
Set goals financial and career-wise to track your progression. If you’re worried about the stability, there are practical ways you can do, such as diversifying your clients and expanding your skill set. Once you start seeing contracting through a different lens, you’ll see the potential for higher earnings and career growth.
Flexibility, higher pay, and control over your career are just a few benefits contracting can bring. But the real question is: are you ready to face your fears and slay the contracting world? The choice is all yours!
How CXC can help
Being a contractor can sometimes be lonely and overwhelming. Managing paperwork, taxes, and administration can be bothersome and time consuming. But you don’t have to do it alone.
When you partner with us at CXC, we’ll ensure you’re well taken care of right from the start and have the tech tools and human support you need. That means, you can focus on your work without worrying about compliance.
With over 30 years of experience in the contingent workforce space, you can rely on our expertise to guide you every step of the way.
Interested in learning more? Feel free to reach out to our team.
