This week’s question is from Anon;
Can you please advice on how an experienced project manager can switch from permanent employment to contractor?
Thanks for your question; there are two initial things to think about before making the switch from permanent to contract work – are you looking for a jobbing contractor role or something more specialised like a consultant position? The jobbing contractor project manager is someone who takes on any project going on a contract basis – generally the project may have lost its project manager and a contract project manager is brought in to ensure delivery carries on. The jobbing contractor project manager may also be brought on board when an organisation is lacking in available resources and needs to kick start the new project ASAP. These contract project managers take these projects on, on a case by case basis and will generally be operating as a self employed or limited company basis.
The second type of freelance is something a little more special – a project manager who operates more on an interim basis – brought in for their specific expertise on a certain type of project, sector or business need. These “contractors” are still operating as a limited company but they have chosen to build a business around their specialist or niche. Their success is totally dependant on ensuring there is a market for their specialism – without it, there really is no market for your USP.
Typically:
- An Interim Manager operates at a senior strategic or executive level within an organisation. Typically engaged to deliver a strategic piece of work or to cover a senior post until a permanent hire is placed.
- A Contractor brings a high level of skill and knowledge in their chosen field and is paid a day rate for their services. The majority of Contractors operate through a Limited company or use the services of an umbrella company.
Once you have thought about where and how you want to operate in the marketplace the six million dollar question is when? Opportunities for contract project managers tend to be filled quickly – after all, the main reason why a contractor is often taken on is availability. Many project managers who decide to go contracting have to give up the permanent job first – and this risk is only for you to decide if it is worth taking (taking into account your personal situation, family committments etc)
It is also important that a new contract project manager gets into the mindset of a contractors life – you may face objections at interviews that you have never been contracting before and these objections are based on a number of things. The contract project manager is expected to hit the ground running in a new contract – no time for a few days grace whilst you settle into the new surroundings. You’re expected to make an impact immediately – with the team, the sponsors and stakeholders – and to do this, hiring organisations look for track record as some kind of guarantee. If you’ve not been contracting before, an organisation may consider you a risk – but that’s for you to prove your worth in the interview.
A contract project manager also has to be savvy – it’s difficult managing projects in an organisation where you are viewed as the contractor – it can mean difficulties in gaining access to certain systems, tools, financial information – but you need to use your tried and tested approach to get things moving. Finally, there is a game to be played around the political situation. In a permanent role you are part of the organisation and with that, part of the office politics, good contractors learn to stay away from this – keep focused on what they have been brought into do, but this too can be difficult. Projects by their nature means the project manager can be drawn into battles and in-fighting and its down to the contractor to effectively manage the balance.
To find out more about the practicalities of moving into the contract market, check out the Tipoffs article from August;
> Making the Switch from Permanent Employment to Contractor
Want to send a question?
Each month we feature a Question and Answer section in the monthly newsletter Tipoffs and I’m also the careers columist for PMI’s subscription magazine PM Network (the last one is here for you to take a look at). So I thought, why not start something up on the Camel – after all, the Camel is all about careers and recruitment in project management. We already have the Project Management Recruitment Ideas as a series of advice-style postings, but the Q&A Project Management Careers is giving you an option to post a question directly to me. You can do this on any blog posting – including this one – or just send it through on the Contact Us form. Just let me know if you prefer to be kept anonymous.
Very valuable post, Lindsay. How about sharing part time permanent and part time contract job? Have you come across such cases?