Are contract positions worth the risk?

Well, first of all I am a tech at staples, and have been for 1.5 years. I do live at home and have responsibilities. I just got my A+ cert, working on net+ then CCNA, and I'm looking for a new job to break into the IT industry. I see a lot of jobs are offering contract positions. I'm worried about job security when considering them. My dad says he'd personally only take one if they were big name companies. I also live in the maryland area between dc and baltimore.

So what are your thoughts in experiences? I'd be willing to get a contract position tomorrow if you guys think it's worth it.

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N2IT

Worth it if you gain experience that puts you in the place you want to be. Most of my IT career has been as a consultant/contractor

Concerned Water

Contracts usually mean recruiters. When it comes to recruiters, you have to be careful. More than likely they will play with you. With the current market employers don't mind using you up and sending you home after a contract end, even if you do a good job. They see it as just business. Personally, I would play it safe if I have a solid job. My reason for this is that I work for a company that does this to people frequently. It's possible to find contracts that will lead into employment, but just fewer now. I believe you should focus more on meeting people and growing connections, keep gaining certs. From my point of view good IT jobs are gained by who you know.

powerfool

Well, there are TONS of contractors in the greater DC area... mostly for the federal gov't. If you want one of those kinds of jobs, they can mean good money, but you will need some form of public trust, like a security clearance (if it is DoD). Honestly, unless you want to be stuck doing help desk for four years, your first few jobs will be like contract jobs even if they aren't. You will be the low man on the pole and they will be quick to let you go if necessary (because of you or the company); on the flip side, you will pickup a lot of knowledge quickly and likely want more responsibility and pay just as quickly... Either way, you probably will get to about 2 years maximum at any of your first few jobs unless to fall into a good situation.

If you are worried about it... see if you can stay on a Staples part-time while you work as a contractor. If your contract comes up and you can't find other work quickly, then see if you can pickup more hours at Staples.

N2IT has a thread about considering working two full-time jobs and I can almost guarantee that his responsibilities dwarf yours (but I don't know you and could be wrong). He decided against it... but just think about it... with his responsibilities, he was considering it. Surely as young as you are, you can swing a full-time and a part-time? If any time in your life, this would be the best time to do it.

MattMcNabb

I say if you can swing being unemployed for short periods of time then go for the contract jobs. I took one in 2010 at an area hospital doing PC deployments for 5 months. It was hard work but was fun and I gained good experience. At the end of the contract my supervisor offered me a full-time benefitted position based on my performance during the contract period. While that may not happen with every contract position, it is always a possibility. Most of the others on my team had been picked from the best of the contract employees. I just considered the temp job as an extended interview and it worked out well. Also look out for any contract-to-hire positions.

N2IT

There are a ton of variables to factor in when making this decision. You have length of contract, profit, benefits or lack there of, companies name, job role and experiences, staff augmentation into a functioning operation or projectized engagement. You have to weight this baby when eyeing up this decision. Saying contracts sucks because recruiters blow isn't very good analysis of the potential situation.

I went from team lead/project coordinator back to a support role. At first I felt bad, almost like I failed, but now I see opportunities. I am making in roads as a contractor and consistently receive praises along with the team I am with. This could lead to a potential employment opportunity and then again maybe they just extend me for another year. Who knows they could kick me arse to the curb.

No matter what life is full of risk you will have to deal with regardless.

My advice to the OP is to get a book on risk management and learn how to measure and decided on which risk to take. Remember not all risk are bad, some are good.

Concerned Water

@N2IT

It kind of came out wrong. I meant it as something to be aware of, not saying their all bad. Yes, many are good (usually serious), the very reason I'm making money now. I just want him to be prepared, that's all.

paul78

I consulted for about 2-3 years back in early 2000. I thoroughly enjoyed the experience. But the toughest thing for me was the constant selling to land new consulting gigs. I would typically do 8-12 week contracts. Some were longer but usually only 20-40 hours a month. My bill-rate was pretty high ($75-$110/hr) so it was a bit tougher to find the right contracts. I left that life-style, frankly because I was not any good at selling and finding new opportunities. Also, I wasn't very diligent about accounting and tracking expenses.

I personally wouldn't have traded the experience. It was a great way to gain some practical business experience in self-employment.

armangua

Thanks for the replies guys!

I just talked to my parents and told them I want to go for the contract jobs and they are with me. I'll be 25 this year, no kids, not married, I'm friendly and I can talk to people without sounding like a complete nerd. I think I'll go far once I take the first risk/step, especially when I am doing something I actually want to do. I'm ready to leave this wimpy retail job with a hint of tech splashed into it, and get some real experience. I agree now is the time for me to go for it with the least risk.

NetworkVeteran

armangua wrote: »

I see a lot of jobs are offering contract positions. I'm worried about job security when considering them. My dad says he'd personally only take one if they were big name companies. I also live in the maryland area between dc and baltimore.

So what are your thoughts in experiences? I'd be willing to get a contract position tomorrow if you guys think it's worth it.

Well, if your options are "no job" vs "contract job", the contract job is a heckuva better deal. If your options are "full time w/ benefits" vs "contract job", take the full-time job. The exception might be if the contract job pays better--rare unless it involves a special consideration such as travel, security clearance, hazard pay, minimal hours, etc. or a spouse already has benefits! This assumes both jobs are in the same industry with similar characteristics.

armangua

NetworkVeteran wrote: »

Well, if your options are "no job" vs "contract job", the contract job is a heckuva better deal. If your options are "full time w/ benefits" vs "contract job", take the full-time job. The exception might be if the contract job pays better--rare unless it involves a special consideration such as travel, security clearance, hazard pay, minimal hours, etc. or a spouse already has benefits! This assumes both jobs are in the same industry with similar characteristics.

Well, here's the deal with my current job. I will never be considered full-time in my position, even if when I can work 35-40 hour weeks , and because it's retail, our (the tech team of Staples) hours we get are based off sales (which have been low lately). I'm been working 28 hours recently and there's too much unneeded stress coming from the sales manager (who weirdly enough has his A+ and Net+, obviously wasting it), even when I sell well. I'm exhausted and ready to move on. Benefits are always good, but I didn't even make use of what I had available while being here at Staples. I'll take the risk.

armangua

Another thing, I am a dual citizen American/British (US first), anyone know of anything benefits or companies to take advantage of that?

Please pardon the double post, I didn't want to make a whole new thread...

dave330i

NetworkVeteran wrote: »

Well, if your options are "no job" vs "contract job", the contract job is a heckuva better deal. If your options are "full time w/ benefits" vs "contract job", take the full-time job. The exception might be if the contract job pays better--rare unless it involves a special consideration such as travel, security clearance, hazard pay, minimal hours, etc. or a spouse already has benefits! This assumes both jobs are in the same industry with similar characteristics.

Many of the contract positions in DC area are long term which means full benefits. MD & VA are both At Will states, so no difference between full time and long term contract.

NetworkVeteran

dave330i wrote: »

Many of the contract positions in DC area are long term which means full benefits. MD & VA are both At Will states, so no difference between full time and long term contract.

I'm also in an at-will state. During my last job hunt, I entertained a few contract positions. As the salary negotiations went upwards, they had to change the offer to "full-time employee" because HR would not allow them to invest beyond a certain amount in a contractor. Even those with 18-mo contracts could not take advantage of the training budget, benefits when offered were lesser, stock options weren't there, perks (daily meal allowance, gym memberships, home phone & Internet) were not there, chances for special projects and career advancement opportunities vs. full-time members were lesser, etc. Contractors are given nothing if laid off and the first to go; employees get a year of pay. . I suppose a handful of experiences don't nail down a whole industry, but contracting is not for me.

The upside for some is, those same companies had a lower-bar for hiring contractors.

The only contractors I know with great incomes have roles with the special considerations I mentioned.

BigMevy

armangua wrote: »

Thanks for the replies guys!

I just talked to my parents and told them I want to go for the contract jobs and they are with me. I'll be 25 this year, no kids, not married, I'm friendly and I can talk to people without sounding like a complete nerd. I think I'll go far once I take the first risk/step, especially when I am doing something I actually want to do. I'm ready to leave this wimpy retail job with a hint of tech splashed into it, and get some real experience. I agree now is the time for me to go for it with the least risk.

Honestly it sounds like you're in a good position to do this. I haven't done contract work myself, though I did do some temp to hire stuff when I first got out of the military and started in commercial. I do have a friend who worked for a contractor for about a year and a half. He said it was stressful at times, and it was a lot of trial by fire as he was still learning, but he gained a lot of hands on experience which helped him to land permanent positions later.

Keener

My first few years in IT were on contracts, but they were long term contracts. I have not done any short term contracts (only a few months or the like) so I cannot make any judgements there, but my long term contracts were good. With them I was actually an employee with the recruiting form with the availability of paid time off, benefits, etc. Those situations are still out there and can be very beneficial. Heck, some companies are very difficult to get in as an employee, almost everyone has to start out as a contractor. This allows the company to evaluate them easier than as an employee. Then others have long term contracts. Look at AB. It is extremely difficult to get into their IT department as a full time employee. However, most of their contracts are 5 years contracts. That is also the max. If they don't convert you to an employee by the end of 5 years you know you need to find something else. I too think you are in a perfect position to be able to utilize short term contracts if they present themselves. One word of advice I offer is in regards to your budget. Don't spend to your current income level as you might go periods of time between contracts. As an example. Just because you earn $3,000 a month, don't go out and rent a place, buy a new car, etc and commit most of your $3,000 a month to other places. Set money aside to cover you when you may not be under contract. This is extremely common in sales positions as you will have parts of the year where your commissions are higher and parts of the year where it may be non-existent. I don't think this "mentality" is shared with IT people very often. I know it was never shared with me. Best of Luck to you and keep us updated on how things go for you.

dave330i

NetworkVeteran wrote: »

I'm also in an at-will state. During my last job hunt, I entertained a few contract positions. As the salary negotiations went upwards, they had to change the offer to "full-time employee" because HR would not allow them to invest beyond a certain amount in a contractor. Even those with 18-mo contracts could not take advantage of the training budget, benefits when offered were lesser, stock options weren't there, perks (daily meal allowance, gym memberships, home phone & Internet) were not there, chances for special projects and career advancement opportunities vs. full-time members were lesser, etc. Contractors are given nothing if laid off and the first to go; employees get a year of pay. . I suppose a handful of experiences don't nail down a whole industry, but contracting is not for me.

The upside for some is, those same companies had a lower-bar for hiring contractors.

The only contractors I know with great incomes have roles with the special considerations I mentioned.

I had a contract that had free medical, all federal holidays off, 11 sick days, 10 vacation days (initially), 1.5 OT and 10% bonus each year. I was close to Obama millionaire working for them and I wasn't in any special position. Just a peon doing grunt work.

There are great companies to work for full-time and there are great contract firms to work for. Just need to find them.

powerfool

One of the real measures is the contracting firm for which you work. If they treat you like a temp, then don't count on getting much more than a short-term paycheck out of it. If they treat you like a consultant, then you will get much more than your check; they will invest in your continued growth and they will take work quality very seriously. This would be the difference between a butt-in-a-seat job versus a trusted-adviser job. In my current position, my company treats me well and I reciprocate. I get very good medical, dental, vision, life, legal, and disability insurance, good paid time off and paid holidays plus flex time, a good formal training/education reimbursement figure with paid training time in addition to plenty of informal training reimbursements, and 10% to my 401k without me having to contribute a dime... that is all in addition to a very good salary (but not the best, because of the other perks... probably top 80% salary for the industry, as whole, though).

On the flip side, you can get a contract that will pay you less than a similar person at the company that is an FTE, with poor to no benefits, no holidays, and no vacation.

I guess the difference is if they hire high quality people, they know that they need to treat them appropriately... it's not like they are going to be able to pull the wool over everyone's eyes if they pick up bright folks with a good work ethic.

drkat

Dude take the contract - your pay automatically goes up for one. Two it will give you valuable experience that you're getting at staples. Three you will begin to network with people and hone your skills. I contracted for 5 years before landing a full time gig and as you gain experience and add stuff to your resume and continue hustling the job market you will always be employed somewhere doing something - esp at 25 with no commitments; I did this when I had a child and live-in girlfriend.

It's all about risk management - if you think you can come up to speed fast enough in an environment and hold your own go for it... you have to be cocky (dont wear it on your sleeve), relentless, and sharp - you dont want Joe Blow next you to thinking he can out perform you - ruthless is key in the contract game and just stay confident and the contracts will come - Even if they end your contract and you're outta work for a month, just pound the pavement for a new gig.

I remember coming home friday night and being called 2 hours after i left that the contract was over and dont come in monday... now that hurts but I kept on trucking and i'm better off because of it.

armangua

drkat wrote: »

Dude take the contract - your pay automatically goes up for one. Two it will give you valuable experience that you're getting at staples. Three you will begin to network with people and hone your skills. I contracted for 5 years before landing a full time gig and as you gain experience and add stuff to your resume and continue hustling the job market you will always be employed somewhere doing something - esp at 25 with no commitments; I did this when I had a child and live-in girlfriend.

It's all about risk management - if you think you can come up to speed fast enough in an environment and hold your own go for it... you have to be cocky (dont wear it on your sleeve), relentless, and sharp - you dont want Joe Blow next you to thinking he can out perform you - ruthless is key in the contract game and just stay confident and the contracts will come - Even if they end your contract and you're outta work for a month, just pound the pavement for a new gig.

I remember coming home friday night and being called 2 hours after i left that the contract was over and dont come in monday... now that hurts but I kept on trucking and i'm better off because of it.

I already made up my mind to take up a contract job next time I see one. I only wish I didn't reject the offers I recently had. Owell, here's to the future!

Now, I recently talked to a buddy who is a General Manager of data center that has managed services, has networking positions available. He has put in a good word for me, to try to get me into the company. He also asks how soon can I get my CCNA, I told him I'll start working on it now. I could study on average 1-3 hours minimum a day and try to get it by the end of the summer or in fall, is that reasonable? Ideally, I'd like to either work on Net+ or CCENT first to cover foundation, is that still necessary or can I get everything in CCNA? I could potentially have a decent job before the year is out.

Thought please?

Thanks in advance!

YuckTheFankees

Network+ will build a nice foundation. The CCENT is the 1st half of the CCNA, if you choose to go the 2 exam route. I personally went the Network+ to CCENT route, I think the Network+ definitely helped me with the CCENT studies.

MrBishop

Really, really good advice here when it comes to contract work. The only good thing about contact work is the pay and the experience you will gain. Did I mention the pay? Yes, you will be paid very well for most contact jobs but you'll must like will be out the door once the contract is done; no matter if they promised you a potential full time position.

NetworkVeteran

armangua wrote: »

I could study on average 1-3 hours minimum a day and try to get it by the end of the summer or in fall, is that reasonable?

I knocked it out in under two weeks part-time the first time, three days the last time. I'd say a couple months where you spend a couple hours per night is very reasonable for CCNA if you're new to networking.

Ideally, I'd like to either work on Net+ or CCENT first to cover foundation, is that still necessary or can I get everything in CCNA? I could potentially have a decent job before the year is out.

The Network+ is irrelevant if you're aiming for serious networking positions. Read the first couple chapters of one of the CCNA books. If it's too hard, perhaps the Network+ would help as a bridge to understand it. Of course, if you need such a bridge, then you will need to add more time to your schedule.

The CCENT requires passing the ICND1 exam. The CCNA requires passing the ICND1+ICND2 or a composite exam. Whether you go CCENT first or not, the path before you is similar. Given you have lots and lots of time to prepare I'd suggest taking them separately. It makes for a nice mid-way milestone to help motivate you and check that you're on-track. Also, if you fail one of the exams, you are risking less money than you do with the composite exam.

Zartanasaurus

Contract work is a great way to break into the industry. What are your career options working at a Staples retail store as a tech? Likely non-existent. Go for experience first and the money comes later. The fact that your parents support you means you can probably get away with some lower-paying work and being between contracts for a few weeks at a time w/o panicking about paying the rent.

If you have a choice between lower-paying with exposure to lots of technology where you could grow your areas of responsibility by busting your ass and more money to babysit a ticketing system at the help desk, take the former.

NetworkVeteran

dave330i wrote: »

I had a contract that had free medical, all federal holidays off, 11 sick days, 10 vacation days (initially), 1.5 OT and 10% bonus

Very nice! I've never seen contract positions that sweet without "special considerations" in my sector in my area. It's nice to know they are out there. I'll be wary but not auto-close the next time someone mentions the C-word.

armangua

Zartanasaurus wrote: »

Contract work is a great way to break into the industry. What are your career options working at a Staples retail store as a tech? Likely non-existent. Go for experience first and the money comes later. The fact that your parents support you means you can probably get away with some lower-paying work and being between contracts for a few weeks at a time w/o panicking about paying the rent.

If you have a choice between lower-paying with exposure to lots of technology where you could grow your areas of responsibility by busting your ass and more money to babysit a ticketing system at the help desk, take the former.

There's nothing for me here in the retail part of staples, the next step up is senior tech if anything. Its 95% retail/sales, just hint of tech to say I've had some experience. Even low end contract jobs add on $10k-$15k pay to my current salary.

I have car, insurance, phone and a loan, as well as help the parents with various bills. That's all within less than a $20k salary. Now that I have my A+ and if I get contract job, I should be around $30-35k or more I should be able to comfortably save for the in-between contract experiences.