Contract Employment 101
Tips on
locating and hiring a Professional Contract Consultant who can actually do
the job
Looking for a Consultant? Click here!
How placement agencies work (or how they are supposed to work): Account Managers work hard to develop relationships of trust with client companies and to obtain job orders from their Clients. Placement agencies make their money by getting their Clients to hire Candidates that they represent. If an agency does not fill a job order, or worse yet, if a competitor fills their job order, a lot of time and money is wasted and it's another lost opportunity. Fail to fill enough job orders and everyone working at that particular agency is going to eventually need their own Recruiter....
So you'd think that Placement Agencies would be eager to make contact with experienced, qualified Engineers who have a long history of successfully completing engineering projects, right? .. and that they would treat these money making resources with the utmost courtesy and respect, right? Yes, you would think so, wouldn't you? Sadly, this process often breaks down during the recruiting phase where poorly paid, untrained "Recruiters" (who were selling refrigerators at Best Buy last week) disregard, insult and chase away Engineers who could be racking up major billable hours for their company.
Why I put this page up here:
It's tiring being jacked around by "Recruiters". It's tiring being
required to jump through hoop after hoop after hoop for jobs that
"disappear" at some point along the process. It's tiring being rejected
for jobs I could do in my sleep and be told "while your
credentials are impressive, we want to pursue applicants who more closely
meet our requirements". I am way past tired of people who are younger than
my Grandchildren demanding references so that I can be considered for a
project that I was an expert at before they were even born.
Interestingly enough.... I sometimes have occasion to hire people for
various projects that I get involved with. These same agencies who have
treated me shamelessly in the past can't seem to understand why I am not
interested in engaging their "services" to fill my hiring needs.
What goes around, comes around.....
If anything here offends you: Just consider the information here to be customer feedback. If all you care about is placing desperate, unemployed people who are willing to work for way below market wages while you charge the client top dollar for his time .... and then take 60+% for yourself for doing essentially nothing, then by all means, continue doing what you are doing.
So you have an employment opportunity?: If you think that dangling the possibility of employment over hundreds of candidate hopefuls entitles you to be arrogant and disrespectful towards those appying, you are probably beyond redemption. In case you are suffering from an identity crisis, your purpose in life is to find and place workers who will generate income for your company. Every time you blow off a qualified candidate, you have failed to perform your primary mission.
Why so few of my projects come through agengies
anymore:
- Step one: You are presented with an unrealistically long list of
required skills and experience that an MIT PhD with 30 years of experience
couldn't meet.
- Step two: The compensation for this so-called opportunity is typically
far lower than what a Technician without all of those qualifications
could earn in the local market.
- Step three: The "candidate" will be asked to jump through hoop after
hoop after hoop in order to be considered for this "opportunity".
- Step four: Invariably, even if you are able to meet most of these
skills "requirements" and if you are willing to endure the "Recruiter's"
extremely painful recruitment process, you will never actually get to
interview for this "opportunity".
- Summary: If you have an actual job that pays a fair wage, working at a
company where I will be treated fairly and with respect, I would love to
hear from you. But... am I willing to eat shit and be treated disrespectfully
just to be considered for an "opportunity" that doesn't even exist? Not
likely.....
Moronic "Recruiter" Questionnaires:
"Recruiter" questionnaire asks: Are you eligible to work in the USA?
Read my resume, fool! I am a US Military Veteran. All US Military Veterans
are US Citizens and thus can legally work in the USA!
If you are too lazy to actually read my resume, then I am too lazy to
fill out and return your bullshit questionnaire. If you can't tell the
difference between an experienced USA-born, degreed Engineer
and some zero experience Green Card holder from Bombay, you are
probably in the wrong business. Is your time so much more valuable than mine
that you can't take ten seconds to actually read my resume?
If you have to obtain answers to vitally important (to you), but inane
(to the rest of the World) questions
such as: "What do you feel
are your top three strengths?" or "Have you ever worked on contract before?"
before you will be willing to "submit my resume" (whatever that might mean),
you can save us both a lot of wasted time and go play these games with
someone else.
If any of this offends you... well, you can cry about it to the owner
of the used car lot where you will probably be working next week.
I get a pile of e-mail every month from Consultants all over the World
who read this page and write to tell me RIGHT ON! Dealing with
"Recruiters" who pull this kind of crap is a total waste of time.
If your objective is not to put a qualified Engineer on a project so that
they can earn revenue for your company, go bother someone else.
Off Shore Agencies: If you are a Recruiter in India or somewhere other than the USA, please click HERE
So-called "Great Opportunities": Please do not contact Consultants with a "great opportunity" and then ask them to spend the next week convincing you that he/she is qualified to take on the project.
I am not in the recruiting business: Please do not contact Consultants with a "great opportunity" and then ask them if they know someone who might be interested. Even if we did, We would not refer them to a cold caller.
Resume Mills: I do not work with resume mills. If your idea of "submitting someone" is to FAX their resume to the client along with a heap of other resumes, you work for a resume mill.
Open Rates: There is no such thing as an "open rate". Clients that have approved, budgeted projects always have rate expectations and ceilings. Please do not waste a Consultant's time if you are just snooping around trying to find out the going rate for a particular skill set.
Projects that are doomed to fail: I do not take on projects that are unlikely to be successful. If finding a Tech who will work cheap is your primary goal, I am most certainly not the Consultant for you. I have been doing this type of work for a very long time. The success of your project will be assured if I am working on it. Project success ought to be the Hiring Manager's primary concern. If it isn't, please don't waste my time. If your project is significantly under-funded, perhaps you should be rethinking your budget and design requirements. You just spent $Millions on hardware or software and now you want to find the least expensive and least experienced Tech to deploy it for you? Good luck with that!
Out of Town projects: Out of Town projects
involve travel and living expenses for the Consultant. If you are offering
less than the market value for a Consultant's time PLUS expecting
him to travel to the site, live in a hotel 7 days a week, rent a car and
so forth, you really need to find a different career because you are
never going to make it as a "Recruiter".
Checking a Consultant's availability:
Please do not waste a Consultant's time checking his rates, availability
and so on unless you have an actual, approved, funded project that you are
ready to begin in the next week or two.
What's the best number to call so that we can
talk?: See above. I do not invest my time in phone conversations with
"Recruiters" unless they are willing to provide me with the name of the
Client, job site location, the rate being offered, the estimated project
duration and a
general description of the project scope and objectives. Agencies that are
experienced in dealing with professional Consultants will provide this
information in their introductory e-mail, without being asked.
The "Recruiting" search process:
Most recruiters don't do more than Google a keyword search before
calling you. And they will customarily take upwards of 40 to 50 percent
of the revenue a Consultant bills for this gargantuan effort. The real job
requirements will not be known until contact is made with the hiring
manager -- earlier the better. If the "Recruiter"
wants to avoid that, he is probably just collecting information and adding
to his resume database for future reference. These facts are the main reason
why I rarely deal with "Recruiters" anymore.
Submittal Deadlines: Some Recruiters
try to create a false sense of urgency by claiming that the cut off
for resume submissions to the Client is a couple of hours from now. This
may have worked great at the car dealership where they were working last
week but in the job placement biz, legitimate hiring reqs are almost always
open until filled.
Contract to perm: If you are a hiring
manager doing a "contract to perm" recruitment, a contract
consultant is most certainly not for you. What you really want is a
so-called permanent "full time" employee that you can test drive
for a few Months to make sure they can do the job before you take them on as
"permanent" employees, right?
Take my advice: be honest with yourself and with the
candidate. If you want to recruit a "full time" Employee,
recruit a full time Employee.
Free consultations: Professional Consultants
are not in the free consultation business. I do not do free on-site or
telephone consultations so that you can avoid making major mistakes when
you try to handle your project on your own. If you are looking for free
advice, please waste someone else's time. Required candidate skills: Be realistic with
your "must have" skills list. If all you need is someone to do
Microsoft Windows desktop support, don't have a skills requirement list that
even a PhD with 25 years of experience could not meet.
More on required skills lists: Acquiring skills
costs money and having those skills is valuable.
If the job requires extensive experience, high levels of training and
certification on specific products and so on, expect to pay for it.
If you are offering a disproportionately low pay rate compared to your
required skills list, expect to be disappointed with the quality of the
candidates who actually respond. Skills assessment lists: I don't know who
thought these things were a good idea but they seem to be picking up
popularity especially with resume mills. Here's how they work: The
Candidate is asked to check off their years of experience and
proficiency level for a list of hardware, software and other
items. Typically, the lower the pay rate, the longer the list. Needless
to say, being a bigger liar than the other guy is the way to win at this
game. Personally, if some Recruiter looks at my decades of UNIX
Systems Engineering experience and has to ask
how many years of experience I have with vi, I figure s/he is
too much of an idiot for me to be wasting my time with. One exceptionally
ditzy Recruiter looked at my 30 years of UNIX exerience and wanted to
know how many years of experience I had with cron, since this was a major
client requirement. Duhhhhh.... If a "recruiter" can't
just look at a resume and figure out if someone is at least somewhat
qualified for a
particular position, they are probably in the wrong occupation. Just
what are these resume mills doing to justify their fee, anyway?
In any case, if you are too busy to actually read my
resume, I am too busy
to fill out your bullshit form.
Moron Recruiters - You know you are dealing with a
moron when the conversation goes something like this: Temporary employment or a contract consultant?:
Just because someone bids on a contract consultant project does not mean that
they are a professional contractor. There are a whole lot of
inexperienced, unemployed
Techs out there calling
themselves "Consultants". A five minute
conversation with them discussing some of their previous consulting projects
will shed some light on their credibility (or lack of it). There are also
a lot of folks out there calling themselves "Engineers" who (IMO) are
really Technicians or less. Specifically, attending a one week seminar
and passing the Microsoft MCSE test does not make one
a "Network Engineer". A four year Engineering degree and several
years of apprenticeship as a Technician is the road to being a credible
Engineer. Very few "real" Engineers are younger than late 20's,
IMO. Overqualified Consultants: There is no such
thing as a contract consultant who is "overqualified". True, you
may not need my expertise with DEC PDP-11 or RSX11M since the
only place you are likely to see that
equipment is in a museum. But the fact that I worked on PDP-11s when they
were brand new and the hottest thing around and then saw them through their
entire life cycle brings value to your project that a less experienced
contractor won't have. Ditto for arcnet, Banyan, X.25, Bisync, HASP,
SDLC and a pile of other
stuff that I learned when it was new and worked with until it went the way
of the moose. There are huge differences between the various contractors
who will bid on your job. But consulting is still a fairly competitive
business. Chances are that an "overqualified" consultant may not be
any more expensive than the other guy who may not even know what a transistor
was used for. Getting the job done right or finding someone cheap:
It makes sense (at least to me) that a hiring
manager's number one concern in locating a contract consultant is that the job
gets done right, right? Otherwise, why bother? Yet an amazing number
of managers choose a consultant based on the rate they are willing to work for
rather than their ability to bring the project to a successful conclusion.
Contracting is a very freelance business and there are a lot of hacks out
there. The less you as a hiring manager knows about the technical aspects
of what needs to be done, the more vulnerable you are to these guys. I
have personally made a lot of money taking over projects that were botched by
someone else. I can assure you that the guy who hired me was not pleased
about the lost time, project delay and wasted money, especially if the first
thing I have to do is scrap all of the "work" that the "bargain" he hired
did. In retrospect, his decision to save $10 per hour with this other guy
was pretty idiotic. Our Company always pays less than the market
rate:...ostensibly because it's an honor to work at this particular
company and they are doing you a favor by hiring you. Or because being
able to say that you worked there somehow has value on your resume. If
this works, more power to you. Personally, I think you get what you pay
for and even if you are able to attract competent people at low pay,
chances are they will bail the minute they get a better offer from
someone else. If the
high cost of turnover concerns you, pay people you recruit what their
time and skills are worth.
High Contractor rates do not guarantee competency:
I know a guy in this market who gets $180 for his time doing Openview
development that I
would be very happy to do for a whole lot less. In all modesty, there
are less than a dozen consultants in the USA who have my level of
expertise with NOC design and development and this guy is not one of them.
Sure, after a couple of months it becomes obvious that the guy isn't up to the
task, but at $180 per hour, that's a $30k per Month mistake! More about skills: Most contract
consultants get their training the same way that I do... on the job. I
work with all flavors of UNIX, various versions of Windows and Windows products,
a half dozen or so remote management applications and a pile of other stuff...
have a look at my
resume. And having Sun Solaris (for example) listed
doesn't mean that I just know how to log on. I know how to Administer
them! Expecting a contractor to be an expert at the latest rev of
pick_your_favorite_ product is a little unreasonable, in my opinion. In
fact, if I spend a substantial amount of time working in a Solaris environment
(for example), I go out of my way to land a contract working in a different
environment next time. As a professional contract consultant, I cannot
afford to get too focused or specialized with just a handful of products.
If that's really what you need, pay a VAR $250 an hour! In the vast
majority of projects that I have bid on, my ability to pick up new technologies
quickly (and without formal training) makes my cost savings to the client
worthwhile. Most successful contract consultants who have been at this for
a while have this same ability. In my case, I actually charge more per
hour for jobs where I won't be learning much. I'll usually give a client a
very attractive rate for a project where I will be learning a lot of new stuff. A word about recruiters: There used to be a lot
of professional recruiting firms around who would understand your recruitment
needs and would go on a focused search to find you the exact skill set you were
looking for. Due partly to the bad economy, most of those companies are
long gone. Their fees could be pricey but if getting the project done
right was important and you didn't happen to have the time or resources to
locate a good consultant yourself, these agencies could be a good bet.
What's left now are mostly resume mills and "recruiters" who were
selling appliances at Best Buy last week. If you're Agency's idea of
"doing a search" is to fax you over stacks of resumes for every
unemployed dork in Town, you need to rethink your strategy.
These days, all these "Recruiters" do is run a google search for
resumes with specific keywords in them when they get your job order. Or
post an ad on Monster, Dice, Craiglist or a similar site.
You can certainly do the same thing and save yourself a stack of money in
the process.
Off Shore "Recruiters": I get a fair
number of e-mails and calls each week from "Recruiters" from far away US
area codes. I've learned over time that these numbers VoIP forward to
people in the former Soviet Union, India or other former crown colonies.
Needless to say, these "Recruiters" know nothing about the local market
and in most cases don't know a server from a spatula. What they do have
in common are arm's length skills and experience requirements for jobs
that pay way, way, way below market value. In my opinion, any
employer who is using Third World Country Agencies to find Candidates
is probably not very likely to be willing to pay anything close to
market value for their time. Anyone who thinks that qualified NOC
Architects will be lining up to live in a hotel thousands of miles away
from home (at their own expense) for $60 per hour deserve the kind of people
they will attract.
My rates: I prefer to work W2 but I will do
1099 or corp to corp if you like.
My minimum is $50 per hour and in all honesty, I don't bill
at my minimum rate often. My "standard" rate is $75 per hour.
My "standard" rate for part time work (less than 40 hours a week) is
$100 per hour. I will look at projects anywhere in the world. I charge $25 per hour per diem
($50 per hour in high living expense locations) for work done at job sites that are too
far away for a daily commute. I take care of my own travel expenses.
To allow me time to find my next project, I require a 30 day notice for when my
services will no longer be required. You may terminate my employment when
ever you like, of course. But you will still be invoiced for the remainder
of the 30 day notice period. Discounts: I have some flexibility with my rates
and I try to be reasonable with my clients. For very short projects where I will be
using products that I really want to gain experience with, I may bid at a rate
that is lower than stated here. But that is done at my sole
discretion. If you really don't have at least $50 per hour to spend on your
project, you probably shouldn't be looking at contract help to begin with. Value pricing: Most consultants charge a
flat hourly rate regardless of the project. This is especially true of
Consultants who only work with a limited number of products or languages.
I generally bid on jobs based
on what I think my time is worth for the work that needs to be done. For
example, the going rate for a UNIX Administrator in this market is in the
$50 - $75 per hour range. The rate would depend on the location, project
duration and number of systems to be managed.
My rate for that project would therefore likely be in the $50 - $75 per hour
range. On the other
hand, even incompetent Openview programmers charge upwards of $150 per hour.
So
for an Openview Architect job I would be more likely to bid at $100 - $175 per
hour, depending on what needed to be done. I am not greedy at all but I am also in business and I know what the value
of my skills is worth. Rate depends on experience (DOE):
I get a fair number of inquiries each week from "Recruiters" who live in
former crown colonies. Invariably they are looking for people with decades
of experience who are willing to work for way below market rates. This
has become so pervasive in recent years that I rarely even return their
calls any more. If you are a hiring manager, I would suggest that you
contact one or two local recruiting agencies that are known to have
good reputations (assuming that you don't want to do the recruiting
yourself). To be candid, I just don't get involved with people who
are only interested in finding the least expensive body to bring onto
the job. I only work with people who's motivation is to reduce project
risk by bringing in someone who can actually do the job. Specifically,
if you are looking for an HP Openview Architect to travel thousands of
miles to your site and live in a hotel for months at a time, and
expect to find someone who actually knows what they are doing for $60 -
$75 hour, you probably need to lay off the drugs a little.
Extras: Unlike some US Presidents and
Presidential candidates, I have never used drugs in my life. I have no
tolerance for drug users and I certainly understand why you wouldn't want to
hire anyone like that. If you don't trust me enough to just take my word on this
and require that I take a "drug screen test" to prove it, that's
fine. Plan on adding another $25 per hour as a rate surcharge. I
also add another $25 per hour aggravation surcharge to work at a company that is
widely known to be an unhappy, unpleasant and/or oppressive place to be. I am
a mercenary ..and I will go where the work is.... but life is
too short to be put upon for free.. References: People who require references
before they will consider a particular consultant do not understand the contract
employment business, in my opinion. For complex, high paying projects that
present a substantial risk to the client, I am happy to give them a couple of
numbers to call so that they can talk to managers that I have done similar work
for. However, if you want to do a reference check to decide whether I am
capable of administering a few dozen Solaris servers, plan on paying an
additional $25 per hour reference check surcharge. Contractor or Professional Consultant?:
There are huge differences between the two. People who do the type of
work that I do are Consultants. Contractors tend to be more along the
lines of "temporary help" and are frequently unemployed Techs who
are willing to accept most any kind of work while they continue to look for
a "real" job. If all you need is a Microsoft Windows Administrator to
keep the servers running, a Contractor could work out very well for you.
Consultants typically help Clients identify problems and then propose and
implement Engineering solutions to those problems. These days, there are
very few Network and Systems Engineering Consultants who do the type of
work that I do. Most often, this need is filled by a VAR who will usually
have financial incentives for recommending one "solution" over another.
Obviously, these types of "recommendations" have limited value to the
Client. Professional Independent Consultants are typically a lot less
expensive than engaging a VAR. Since Consultants typically do not sell
anything except their services, their product recommendations tend to be
a lot more reasonable and responsive to your needs than what you might
get from a VAR.
The latest scam from India: Took me
a while to figure this one out. It's a so-called "boiler room" operation
running out of India. I get literally dozens of queries a week
from guys with former crown colony sounding names. In most cases, you can
barely understand them because of their extremely thick accent. These
outfits all seem to have USA addresses and phone numbers, but the "suite
numbers" usually look suspiciously like mail drops. I'm guessing that the
phone number is a VoIP connection to Bombay or some place.
You: I'm responding to your e-mail regarding a 3 month project in
"pick_a_City_2,000_miles_away_from_home".
Recruiter: Do you have experience with WhizBang Plus Version
7.31?
You: Yes, I've worked with WhizBang Plus a lot since it was released
10 years ago.
Recruiter: What about version 7.31?
You: I've worked extensively with Version 7.30 and earlier. 7.31 has
only been released for a few weeks and I haven't had a chance to see
it yet.
Recruiter: Sorry. The Client is insistent that he wants an expert
with at least 2 years of experience with 7.31
You: But.... well, what does the job pay? Maybe I could attend the
$5,000 one week Vendor training update for 7.31
Recruiter: The rate is "open" and tops out at around $15 per hour on
a 1099.
I first noticed this when I started getting a LOT of Google search hits
on my on-line resume from IPs in India. Invariably, I would get an e-mail
and a phone call from someone with a very Indian sounding name and a USA
reply phone number shortly after they found my resume. These outfits are
usuall
y
looking for someone with very high end skill
sets for a job that's thousands of miles away from home. The rate being
offered will be in the $60 - $80 per hour range, corp to corp, all
inclusive.
As I said, it took me a while to figure out how this works. The
Consultant agrees to take on the project for $70 per hour. Consultant
travels to the site at his own expense and pays all of his hotel, meals
and other living expenses out of his own pocket. Note that even though
the Consultant is working a 5 day, 40 hour week, he nevertheless has 7
days a week of hotel, meals and living expenses.... plus, he is away
from home for a very extended period.
These guys in India certainly know the value of the work being done
by the Consultant and are charging the Client accordingly. I get a LOT
of inquiries looking for HP Openview Architects... the going rate for an
experienced HPOVO Expert like myself is in the $200+ per hour range. So...
(this is the part that took a while for me to figure out), the way this
scam works is that the India company does the deal with the Client (for
as much money as they can possibly get) and
bills them once a week or every other week for your time. The Consultant
gets paid a fraction of what his time is worth when/if the guys in India
feel
like sending you a check. I've done projects where getting paid once a month
is
not that
uncommon. The Consultant could easily rack up $10k+ in expenses (plus
never being paid for hours worked) before he figured it out. The way this
scam works
best is if the guys in India end up paying the Consultant nothing as there
is absolutely no risk on their end at all. Try suing a company in India
for a civil matter like this! Or maybe they'll pay you just enough to
keep you working on the job so that you're really into your own
pocket by the time you figure this whole scam out.
Scams like this work best when there is little or no risk to the scam
operator and this one certainly qualifies. My advice would be to run like
hell when you see one of these characters coming. If you're REALLY hard
up for employment, at least protect yourself a little by demanding an
advance to at least cover your travel and living expenses. If anyone reading
this has first hand experience that they care to share, I will be happy to
put a link to their story here.
IT Managers constantly need experienced HPOVO experts and consultants
like myself who are experienced with many monitoring tools such as BMC,
CA, MOM and so on. My advice to hiring managers would be to Google what
you want yourself or go through a local, reputable placement agency that
will protect you with a W2 Consultant relationship instead of dealing with
potentially "fly by night"
operators. Since these guys in India work strictly corp
to corp and since they undoubtably substantially mark up what is essentially
a "pass though" service, there is absolutely no reason that I can see to be
going through these guys.
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