|
Contract Employee's Newsletter
Helping Contract Professionals
Manage Their Careers
April 15, 2002
Edited by James R. Ziegler
A Companion to:
The Contract
Employee's Handbook
www.cehandbook.com
Sponsored by:
P.A.C.E. - Professional
Association for Contract Employment
www.pacepros.com
About The Contract Employee's Newsletter
The Contract Employee's Newsletter is a free e-mail publication
for technical and professional contractors containing news, commentary,
tips, links to useful resources, nuggets of wisdom submitted by
readers, and anything else that seems appropriate at the time. The
CENewsletter is distributed bimonthly or whenever issues warrant
and time allows. The subscriber list is confidential and will not
be disclosed outside this organization.
In This Issue
Read recent
issues of The Contract Employee's Newsletter.
Suggest A
Topic For The Newsletter
Ideas Anyone?
Thank you for your excellent suggestions for future newsletter
topics. Keep 'em coming. Chances are, if a topic interests you as
a Contract Professional it will certainly interest the majority
of our readers.
Guest Appearances
I would like very much to publish short guest contributions
to the Contract Employee's Newsletter. Maybe a marketing tactic
that works for you, or a true story of agency madness? I'll cite
your name, your e-mail address, and a link to your professional
website. I can't pay you, but I'll make sure that everyone who reads
the Contract Employee's Newsletter knows who you are and what you
do. It can't hurt, and, who knows, it might help your consulting
career. Contributions should be of general interest to all Contract
Professionals.
Mail your suggestions to suggestion@pacepros.com.
Return to Table of Contents.
Featured Topic
Create a Compelling Summary of Experience
Place a Summary of Experience at the head of your Skills Profile.
But not just any summary will do. It must be positive, proactive,
powerful, emotional, and 100% about the great service that you deliver
to your clients.
The Summary of Experience is not the place to be modest,
self-deprecating, passive, or dry. The Summary of Experience is
not about you. It is about what you can do for
the client who is reading the resume. Your Summary must immediately
grab the reader's attention or you will not even be considered.
Here is an example of what I mean. The following Summary is from
an actual skills profile for a highly qualified software developer.
Read it. Does it grab your attention? Does it get you excited? Does
it make you want to meet this person?
SUMMARY OF EXPERIENCE
I help my clients round out their software development teams.
I perform software modification and maintenance tasks so that
other team members are available for ongoing projects, or join
the team to develop new products. I am good at grasping the overall
structure of new or existing software. I come up to speed quickly,
and typically complete tasks ahead of schedule. I am also good
at documenting my efforts. I understand the importance of following
established procedures and not sacrificing maintainability for
the sake of expediency. I have experience in all phases of the
software development life cycle, so I can be useful at any stage
of development. I am self-motivated and work equally well independently
or as a member of a team.
And now, here is a makeover of the same Summary of Experience.
SUMMARY OF EXPERIENCE
Let me help you supercharge your software development teams.
My solid grasp of software structure and dedication to complete
documentation ensure that your projects will be completed on schedule,
using established procedures, with full maintainability. I bring
to you a wealth of experience in all phases of the software development
life cycle. I work equally well independently or as an integral
member of your team. Call me. Let me help you create super software
applications.
Quite a difference, isn't there? The second Summary is shorter,
snappier, more positive, and it bleeds self-confidence and
ability. How can you not want to read further and then call
this person in for an interview?
Pull out your own skills profile (I hope you are not still calling
it a resume) and reread your summary. Is it about you? Or is it
about what you can do for the client? Is it forceful, positive,
dynamic, and compelling? Is it forward focused? Does it ask the
reader to take action? Does it demand to be read.
Is shyness and lack of confidence keeping you from asserting your
worth? I suggest that you simply get over it. Contract Professionals
cannot afford to be shy. Take the time right now to write a hero's
summary, and then live up to your client's expectations!
Return to Table of Contents.
News and Views
Free Agent Events Spring 2002 Conference in Bellevue,
WA, Saturday, May 11th.
If you live and work in the Northwest the Free
Agent Events Spring 2002 Conference is definitely the place
to be. Featured keynote speakers are Dan Pink, and. . . ME!
Dan Pink is the author of Free Agent Nation, the controversial
and acclaimed book about the rise of people who work for themselves.
His articles on technology, economic transformation, and the future
have appeared in the New York Times, Washington Post, New Republic,
Fast Company and Salon among others. In the morning session Dan
will share his Thoughts on a Free Agent Nation.
Dan will be signing copies of the newly released paperback edition
of his book, which includes additional resources for free agents!
In the afternoon session I will discuss Lessons from Hollywood:
Contract Employment and the Real Hollywood Model.
Superficially, work in the corporate setting is coming to resemble
more and more the Hollywood Model in which people are assembled
into "projects" for as long as they are needed, and then
dispersed when their contribution to the project is completed.
But how Contract Professionals find work in the corporate
setting resembles anything but the Hollywood Model. My address will
contrast the recruiting firm model with the sports and entertainment
industries' use of sports agents and talent agents, and I will offer
some surprising insights into the workings of both systems.
Special speakers and breakout sessions will address a wide variety
of topics of interest to Free Agents and Contract Professionals.
Be there
or be square!
Return to Table of Contents.
Marketing Tips
Get Your Message Across With A Seven-Second Introduction
It goes without saying that your chances of finding work increase
with the number of people who know what you do and how well you
do it. I'll show you how you can use a simple "Seven-second
Introduction" to get your message across to every person you
meet.
The seven-second introduction is something you say over a handshake
while you are introducing yourself to someone. Say it every time
you shake hands, regardless of the circumstances and regardless
of who you are meeting. Here's one that I use:
"Hi, I’m Jim Ziegler. My business helps consultants
make more money."
Notice that I don't make a sales pitch, and I don't try to explain
what I do. All I say is something catchy and to the point. "My
business helps consultants make more money."
I want the other person to ask "How do you do that?"
A key element in my seven-second introduction is the phrase "My
business helps. . ." Notice that I focus on what I do for
others. No one wants to hear me boast that my consulting service
is the "biggest", the "best", or the "fastest
growing." What they want to hear is what I can do for them
and their friends.
Notice also that I use the phrase "my business". I want
people to know that I am a business and not a captive employee.
Keep it light, snappy, and add an emotional element. As the great
sales trainer Zig Ziglar says, "Sell the sizzle, not the steak."
Here are some tag lines that I've come across recently. Notice
that each begs the question "How do you do that?":
"My business resurrects dead networks."
"We're geeks so that you don't have to be."
"I'm a financial analyst. I help CEOs sleep at night."
"I supercharge software development teams."
Give a good, firm handshake. Look the other party squarely in the
eyes. Be upbeat, smile, and pass the other party a business card
with your free hand. Don't be embarrassed. As a consultant, promoting
yourself is what you do for a living.
Here's a trick that I learned about during the last CEWorkshop.
Have your tag line printed on the back of your business cards. That
way you can read it during your handshake, and the person you give
it to will have a permanent reminder of just what it is that you
do.
You might not feel like a superstar consultant, and I don't
want you to do something that's entirely against your nature.
But, give it a try anyway. Pretend that you're a superstar consultant,
and craft a seven-second introduction that will have 'em begging
to learn more about your valuable consulting service.
Now, practice your seven-second introduction in the shower, in
the car, on friends and coworkers. Before you know it, saying your
tag line to everyone you meet will become second nature.
In the next issue of the CENewsletter I'll describe how to expand
your seven-second introduction into a thirty-second pitch
that you can use as the summary in your professional skills profile.
Return to Table of Contents
Agency Madness
Questions To Ask Third-party Recruiters
As many of you know, the temp agency business model is intrinsically
harmful to both knowledge workers and the clients who use their
services. Yet, in a depressed economy one is compelled to use any
means possible to find work, including the use of recruiting firms
that take a minimum of 35% off the top for placing you with a client.
Of the 35% that recruiting firms take off the top, 15% is payroll
overhead. The remaining 20% or more is gross profit.
In sharp contrast to recruiting firms, Talent Agents and Sports
Agents are prevented from gouging the talented people they match
with production companies and teams. The various Federations, Guilds,
and Unions that represent entertainers enjoin agents from taking
more than 10%, and the agents must be franchised (certified) by
these organizations before they can represent their members? Did
you know that NFL Sports Agents take only 3 to 4% plus expenses,
and they must be certified by the NFL Players Association? The same
holds for Major League Baseball Agents, NBA Agents, and NHL Agents.
These agents work for the talent, not for the production
company or sports team. Like all professional services providers,
talent agents and sports agents disclose their fee structure, and
they operate in an atmosphere of full disclosure.
It is only the recruiting firms, that work for the client instead
of working for the talent, that charge obscene rates and hide their
margin from the consultants who actually do the work.
So, until knowledge workers have true talent agents to represent
them the way entertainers and professional athletes have talent
agents and sports agents I suggest that you take care not to get
suckered in by every recruiter that smiles and buys you a cup of
coffee.
Even though the person may be genial and appear to want
to help you, you must always remember that the business model
behind the recruiter is inherently exploitative.
Case in point: Thomas Jefferson, third president of the United
States and author of the Declaration of Independence was a wonderful
human being. Our great nation owes much to his legacy. That said,
we must never forget that he pressed his own children (some say
nieces and nephews) into slavery because their mother, Sally Hemmings,
was of African decent.
Don't for a moment think that good people are incapable of horrible
injustices when they are following the practices of a corrupt system.
How can you tell if you are working with "reputable recruiter"?
(That's a non sequitur if I ever heard one) Here are some questions
to ask. An honest business person should have no problem answering
these questions. A scamster, shyster, or other reprobate will try
to shine you on and generally evade straight answers.
- How is the recruiter's spelling and grammar?
A recent post to an e-mail discussion forum from a recruiter
contained eight typos in as many lines of text. Do you want someone
who is functionally illiterate representing you to clients? How
might that reflect on you? What might that say about the recruiter's
attention to detail? You are a professional. You want a professional
to represent you in negotiations with the client.
- How long has the recruiter worked as a recruiter?
The recruiting industry like all sales jobs has a very
high turnover rate. Do you want a rookie representing you to the
client? What kind of value proposition can a rank amateur make
on your behalf other than to spam your resume to hundreds of HR
departments. Work only with seasoned professionals.
- Will the recruiter disclose the billing rate that is charged
to the client?
The billing rate is what your consulting services are worth
on the open market. Knowing the billing rate is critical to your
career.
- What proportion of the billing rate does the recruiting firm
take off the top for
-- 1099 or corp-to-corp job matching and contract management?
-- W-2 employment in addition to job matching and contract management?
The 1099 pay rate should be at least 15% higher than the
corresponding W-2 pay rate. The margin taken off the top for straight
placement should not be greater than 10% (This is what true talent
agents get in the entertainment industry). If the recruiting firm
places you and also employs you then the margin taken off the
top should be no greater than 10% plus an additional 15% for payroll
overhead plus 5% for paying you in advance of collection from
the client. In other words, a 30% margin. Most recruiting firms,
however, won't settle for less than 35%.
The important issue here is that the agency will at least disclose
their margin. If they hem and haw and try to evade the issue then
you know you are dealing with crooks, plain and simple. Recruiters
who don't disclose their fee structure have a license to steal.
- Does the contract have a blanket noncompete clause, and
if so what are the terms?
Blanket non-competes should be limited to the specific
business unit where you are to work, and should have a duration
not longer than six months. Anything over one year is probably
unenforceable in a hi-tech environment. Find out more about noncompete
clauses at www.BreakYourNoncompete.com.
- Does the recruiting firm subcontract to other staffing firms
or consulting firms, and if so do they tell the contractor how
many firms are in the loop?
I have seen up to five firms subcontracted to one another,
each taking a bite out of the ultimate billing rate. Two or three
firms between the contractor and the client is not unusual.
- What perks and benefits does the recruiting firm offer the
contractor and
-- when and how does the contractor qualify for coverage?
-- how are the benefits paid for?
Recruiting firms offer notoriously poor benefits, and tend
to have long qualification periods. Does the agency you are interested
in care enough about its contractors to offer a decent benefits
package?
- Ask the company if it is a "recruiting firm", "temp
agency", "placement agency", "contract employment
agency", or other type of "staffing firm", or is
it really and truly a project-oriented consulting firm?
The company may call itself a consulting firm in an attempt to
make you think it is hiring full-time employees for it's staff.
Don't allow yourself to get hoodwinked by staffing agencies that
are trying to pass themselves off as bona fide consulting firms.
This type of misrepresentation is tantamount to fraud. Don't fall
for it.
- Does the company recruit contractors and full-time employees
to fill job orders from client companies, or does it recruit contractors
to work on its own projects?
For example, a software development firm may hire contractors
to work on a development project for a client. However, a recruiting
firm will place you as an individual usually at the client's premises.
- How long has the company been in business, and where on the
Internet can one go to find out more about the company?
I recently went to the domain of firm that represented
itself in a discussion forum as a "technology consulting
and software development organization". All I got was a placeholder
page with no content. The company barely existed, if it existed
at all.
How effective will a company with a poor web presence be at presenting
you to potential clients? Make sure that you are working with
a recruiting firm that has connections in your industry and really
knows the score.
- How many clients does the firm currently have?
Ask for a client list. Then call the clients and confirm
that the recruiting firm is actually an approved vendor.
- Ask the company for references from satisfied contractors.
A reputable recruiting firm will connect you with satisfied
contractors.
- How many employees (including staff and contractors) did
the firm process payroll for last month?
A firm with many contractors on current assignments will
likely find it easier to place you successfully.
Personally, I think that recruiting firms are irrelevant,
but if you must use one to locate contract work at least make sure
that you are working with one that is honest, professional, has
a good track record, and maybe (just maybe) has your best interests
at heart.
Return to Table of Contents.
Ask Dungaree Dan
Special Things To Consider For A Contractor Over
Age 65
Q: Dear Dan -- Are there any special things to consider
for a contractor over age 65? -- Signed: 65 and Still Climbing
A: Dear "65" -- You mean like "Get enough
sleep" and "Watch your blood pressure?"
<grin>
Actually, I suspect that you are referring to the issue of age
discrimination. At P.A.C.E. some of our highest billing contractors
are over age 65.
I think the key to getting work as a contractor is presenting a
compelling value proposition, regardless of your age, gender, ethnicity,
or any other discriminating factor. Clients want to know that you
can do the job. Period.
You will find age discrimination if you look for it. You will find
just about any other kind of discrimination if you look for it.
I'll let you (and everyone else reading this missive) in on a little
secret. In 1995 when I was 52 I asked my daughter "What is
the Internet?" And she had me sit in front of her computer
and we surfed the Internet.
Less than a year later I purchased my first computer and started
writing content for The
Contract Employee's Handbook based on my experiences as a temp-turned-contractor.
I will be 59 in a few weeks, and I now make my living entirely
on the Internet. My business, which I started from scratch four
years ago, now employs my daughter as P.A.C.E.'s VP and CFO. P.A.C.E.
has a (growing) staff of six, of which 4 are over 50!, and our Division
Managers, including several in their sixties, billed over $8 million
in 2001.
I am not aware of any P.A.C.E. Division Manager who has lost a
gig because of his or her maturity. Our clients are mostly
interested in results. P.A.C.E.'s current client list includes Apple
Computer, Clorox, Hitachi Data Systems, KPMG Consulting, Kroger
Foods, McGraw-Hill Higher Education, Microsoft, Oracle, Safeway,
Sandia Laboratories, State Street Bank & Trust, Tivo, USS POSCO,
and Wells Fargo. We have never had the slightest inkling that any
of our clients paid attention to age.
Granted, I am younger than your 65 years, but my own experience
as a technical writer, advocate, and business owner tells me that
maturity trumps youth on any given day. Needless to say, I have
never bought into the concept that age per se matters --
either on my side of the desk or the client's.
In the final analysis, what your client wants to know is "Can
you do the job and is your work worth what I am paying you?"
Your challenge as a "Senior" is to demonstrate that you
can do the job as well or better than anyone else regardless of
age, gender, ethnicity, or any other discriminating factor.
What specifically can you do to counter age discrimination?
I suggest that you demonstrate clearly and convincingly that your
skills and expertise are up to the job. Don't include work experience
older than 10 years in your skills profile, and do not list dates
of education or in any way provide information that will allow someone
to infer your age. I also suggest that you take care to avoid any
language or mannerisms that might date you.
I don't mean that you have to be hip and into techno music, tattoos,
and piercings, etc. What I mean is that you should avoid any language,
behaviors and dress that cry out "I'm an old fart, and I
am not interested in keeping current, and I am not open to new ideas
and personal growth."
Young people, because they are still young and inexperienced in
life, tend to favor energy over persistence, speed over accuracy,
expediency over maintainability, and spending over frugality. And
especially, they tend to discount the problem solving skills and
people skills that come from a lifetime of coping.
Young people are afraid that your skills are dated and that your
mind is fuzzy. You have to counter that bias with an attitude that
exclaims"I am a professional. My skills and expertise are
current. I am open to new ideas, and I am constantly learning new
ways to solve my clients' mission critical problems."
Focus more on what the client needs and less on your age. You will
be surprised at the results. -- Signed: Dungaree Dan
Questions for Dungaree Dan
Send your questions about contract employment to Ask
Dungaree Dan. We will try to answer all of your questions, and
we will publish the most interesting ones in The Contract Employee's
Newsletter.
Return to Table of Contents.
Contract Employee's
Glossary
Terminology For Contract Professionals
More terms from Appendix
B: Glossary of Terms for Contract Professionals of The
Contract Employee's Handbook.
Employment agency
Any person regularly undertaking with or without compensation to
procure employees for an employer and includes an agent of such
a person. Examples are staffing agencies, placement agencies, temporary
help agencies, contract employment agencies, and recruiting firms.
Employment agreement
An agreement or contract between an employer and an employee that
specifies the rights and obligations of each party to the agreement.
Also, employment contract.
Equal Employment Opportunity Commission (EEOC)
The EEOC is a federal agency that was created by the Civil Rights
Act of 1964 to administer and enforce that Act’s prohibitions
against discrimination in the workplace. Companies must comply with
EEOC rulings and requirements when dealing with staffing agency
temps under the company’s supervision.
Errors and omissions insurance (E&O)
Also referred to as professional liability insurance and malpractice
insurance. E&O insurance provides coverage for liability resulting
from errors or omissions in the performance of professional duties.
Basic E&O coverage pays your defense costs if you are sued for
negligence. Better policies also cover (at least partially, depending
on your policy) your costs if you are found liable and have to pay
damages.
Estimated Taxes
Individuals and corporations who have major sources of income from
which taxes are not automatically withheld generally pay estimated
taxes at intervals throughout the year. Most individuals who pay
estimated taxes send them to the IRS and to their state’s tax
agency four times a year.
Executive recruiting firm
Essentially synonymous with permanent placement recruiting firm.
Used to describe recruiting firms that specialize in management
and executive level placements.
Exempt employee
An exempt employee is one that the Fair Labor Standards Act (Fed
Wage/ Hours Act) defines as either an executive, administrator,
professional or outside sales person whose salary level and job
content meet the strict requirements of the law and, therefore,
are not required to be paid overtime.
Expense reimbursement
A business may reimburse its employees with tax-free dollars for
out-of-pocket, business-related expenses provided that they conform
with the provisions of an IRS-compliant accountable plan drafted
by the business. Employees must account for the business-related
expenses with original purchase receipts and valid billing statements.
Expense reimbursement form
The form on which an employee records out-of-pocket, business-related
expenses for reimbursement by the employer with tax-free dollars.
Extension clause
Terminology in a contract that specifies the conditions by which
the contract may be extended.
Return to Table of Contents.
Contract Employee's
Workshop
Look For The New, Online CEWorkshop
- Beat the recruiting firms at their own game.
- Get better gigs.
- Make more money.
- Keep your independence.
I am developing an online presentation that will allow anyone with
a telephone and a browser to attend live presentations of the CEWorkshop
over the Internet. The online CEWorkshop will consist of four, one-hour,
weekly sessions, each covering a different aspect of marketing your
consulting services.
Weekly sessions will cover the following topics:
|
Week 1:
|
Identify and Package
Your Core Competencies.
What are you selling?
|
|
Week 2:
|
Short Term Marketing
Tactics.
How to get work in a hurry.
|
|
Week 3:
|
Corporate Intelligence
and Research.
How to get inside prospective clients.
|
|
Week 4:
|
Long Term Marketing Tactics.
Build your credibility and your reputation.
|
New e-book on marketing
I am developing a new e-book called Nuggets in a Nutshell:
Marketing Tips for Contract Professionals. This invaluable
resource has over 250 proven tactics used by experienced recruiters
and seasoned consultants to land contract assignments directly with
client companies.
Every participant in the online CEWorkshop will receive a free
copy of this useful resource.
The online CEWorkshops and the e-book will be available within
the next 30 to 60 days. I'll let you know in the CENewsletter when
we are ready to roll them out.
Would you like to see me cover a specific topic? E-mail your ideas
and suggestions to Workshop@pacepros.com
Return to Table of Contents.
The Contract Employee's
Project
The Contract Employee's Project is the larger context under which
the following interrelated vehicles operate to promote and defend
the interests of Contract Professionals:
Copyright and
Publication Info
Copyright (c) 2002, James R. Ziegler. All rights reserved.
You may copy or forward this free publication provided it is left
intact with all links and this notice unchanged. Any unauthorized
duplication, including republication in part or in full for commercial
use, is an infringement of copyright.
Published by:
P.A.C.E. - Professional Association for Contract Employment
1355 Willow Way, Suite 244
Concord, CA 94520
USA
http://www.pacepros.com/
Editor:
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
(925) 680-0200
CENewsletters@pacepros.com
Return to Table of Contents.
Disclaimer
The Contract Employee's Newsletter is designed to provide information
in regard to the subject matter covered. Use is granted with the
understanding that the publisher and authors are not engaged in
rendering legal or financial advice. If expert assistance is required
you should seek the services of a competent professional.
The purpose of this information is to educate and entertain. The
publisher and contributors shall have neither liability nor responsibility
to any person or entity with respect to any loss or damage caused,
or alleged to be caused, directly or indirectly, by the information
contained in this Newsletter or by information contained in any
web site or resource referenced by citation or hypertext link within
the pages of this Newsletter.
Return to Table of Contents.
Subscribe to The Contract
Employee's Newsletter
The Contract Employee's
Newsletter: Sign Up Now! Useful News & Updates
Return to Table of Contents.
Sign-off
I hope you have found the information in this newsletter to be
interesting, informative, and provocative. I encourage you to share
the CENewsletter with your friends, colleagues, coworkers, clients,
and agency recruiters.
Why clients? Because you need every ally you can get. Why agency
recruiters? Because they need to know the jig is up.
Wishing you success in your contracting career,
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
Return to Table of Contents.
>>> Return
to the P.A.C.E. Home Page
|
