‘Soft’ contracting skills become even more important when times are tough. And contractors investing in them increase their chances of staying in contract, having a choice of contracts, and maintaining a successful and profitable contracting business.
Whilst contracting as a whole is thriving, times are getting tougher for some contractors across virtually ever sector. For example, although engineers are still in demand, the latest labour market statistics from the Recruitment and Employment Confederation and KPMG show a sharp fall in IT contractor demand. And, according to the Monster Employment Index, online demand for interim marketing and management contractors fell away during May.
Yet, time and time again we are encountering up-to-date anecdotal evidence of the well-established truism: it is not the best qualified contractors who get the best and most lucrative contracts; it is those who are the best at finding and winning contracts who get the best contracts. That means having highly developed marketing, sales and negotiation skills, all part every contractor’s essential ‘soft’ skills set.
...it is not the best qualified contractors who get the best and most lucrative contracts; it is those who are the best at finding and winning contracts who get the best contracts.
Dave Chaplin - ContractorCalculator
Even if you are in a contract, there’s still the challenge of getting paid. Research from Bacs shows that the UK’s small to medium sized enterprises (SMEs) are owed £35.3bn in late payments. That includes all limited company contractors, but also many umbrella companies and niche recruiters in the contracting supply chain, who will be facing payment delays from their clients which will ultimately be passed onto contractors.
How do you deal with persistent late payment by your agency or client? There are simple tactics you can use to minimise your financial exposure to agencies and clients who may not be financially sound. And at what point do you draw a line, stop work and start debt recovery proceedings? Most business owners learn the hard way; if you invest in your contracting skills, you won’t have to.
But it is not all doom and gloom. Economic uncertainty creates opportunities for contractors, as many organisations prefer to take on a low-risk flexible worker rather than a high-risk employee. And there are some sectors that continue to do well during economic downturns, offering sustained or even increased contract opportunities. The process of identifying and targeting these sectors and clients is a basic contracting skill.
Fortunately you don’t have to go far, nor invest too much time and money, in enhancing your contracting skills. You can now access the ultimate contracting skills resource in updated and expanded form: the just-published Contractors Handbook 2nd Edition.
The new expert guide for UK contractors and freelancers retains all of the best original content used by tens of thousands of contractors to hone their contracting skills. It also includes the latest tax, Agency Workers Regulations, expenses and company law guidance – even including the May 2012 IR35 changes. There is also detailed, easy-to-follow advice on how to become better at finding and winning contracts, tackling late payment problems and a wealth of other solutions to your contracting challenges.
Just because some contractors are finding it tough, it doesn’t mean you have to. Use the resources available to invest in those key ‘soft’ contracting skills that will keep you winning contracts and getting paid – well paid.