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Contract Employee's Newsletter
Helping Contract Professionals
Manage Their Careers
Vol. 3, No. 11
May 23, 2003
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 online 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 published bi-weekly 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.
Featured Topic
The Resume Search Method Of Networking
In a recent
article published on Monster.com Barbara
Reinhold made the following point on the value of networking:
"In the world of work, networking is, indeed, a very
big deal–even the Wall Street Journal reported that 94 percent
of successful job seekers claimed networking had made all the
difference for them."
[Barbara Reinhold's latest book, Free to Succeed: Designing
the Life You Want in the New Free Agent Economy, is a useful
tool for deciding whether or not to have an enterprise of your own
and how to get one started if you decide to. It helps you evaluate
your own preferred work styles.]
Ninety-four percent is a very big number, and if the Wall Street
Journal is correct it means that any job hunter who fails to network
effectively is virtually doomed.
Personally, the statistics I hear most often indicate that 65%
to 85% of all jobs (including contract positions) are filled through
referrals. This statistic is so common that it may be simply an
urban myth, but few would deny that most hiring authorities would
rather interview someone who they already know, who they already
know about, or who has been referred to them by a trusted third-party
(such as a co-worker, colleague, or friend).
Hiring authorities hate having to review stacks of resumes.
It is time consuming, tedious, and thankless work. They would much
rather interview a few candidates who are already on their personal
short list.
So, if you are looking for contract assignments you definitely
want to identify and get to know inside contacts at
companies that use your skill set.
Just collecting names is not enough. You have to get to know the
contacts personally before you actually apply for work, or
at the very least get solid referrals to the hiring authority from
people who already know that person.
[Note: Anyone in HR is NOT a hiring authority, unless
of course you are seeking a job in HR.]
The hiring authority is that one person who will make the final
decision to hire you, and is usually the one who owns the
budget from which your salary or consulting fee will be paid, and
also the person who will supervise or oversee your work or at least
be accountable ultimately for the quality of your work. Although
several people may be involved in the hiring process, you will most
definitely want to identify and get to know the one person
who makes the final decision.
So, you ask, how does one get a line on these insiders? Let me
suggest what I believe is the single most powerful method you can
use to get inside a company. This method is so simple and so powerful
that if you follow the steps you will soon become a principle information
hub known to virtually everyone in your skill set who has the ability
to refer you or hire you.
The downside to this method is that only 1% to 5% of the out-of-work
people who read this article will actually follow the steps to their
logical conclusion. The upside to this method is that if you are
among the 5% or fewer who do follow this method you will be assured
of finding work quickly and negotiating a high billing rate.
I call this method the Resume Search Method of Networking.
Here it is:
Step 1.
Go to Google.com
and enter the following key words:
- "Resume" because you are looking for people, and resumes
have contact info.
- "Company Name" or "Name of City" because
this is where you want to work.
- "Skill Set" or "Job Description" because
this is what you do
For example the keywords <Resume IBM Lotus Notes Develop>
will return the resumes of people who have worked at IBM (and other
companies) who are Lotus Notes Developers or do Lotus Notes Development
(note I left off the final "er" or "ment" so
I would reach both Developer and Development.) My own search using
these keywords uncovered 4410 links, including many resumes.
Step 2.
Your job now is to search for resumes that resonate with
your skill set, and then actually meet these people by picking up
the phone and calling them. Focus on people who know more than you
do and have more experience. These "pros" can be very
supportive, and may even become like a mentor to you.
It is important to keep in mind that these people are not
your competitors. They are your colleagues, and collectively
they know everyone who is anyone in your profession.
Most will be full-time employees. Others will be self-employed consultants
and contract professionals. It doesn't matter whether they are out-of-work
or working. Any and all of these contacts are potentially immensely
useful sources of information.
Before you call a lead I recommend that you do a search for their
name in Google.com. You might uncover a personal Web site or references
to articles, talks, or published bios. The more information you
uncover the better.
Step 3.
Call each person who has an online resume that you have selected
and printed out.
When the phone answers you might say, "Hi Jack, my name is
Larry Domino and I'm a Lotus Notes Developer. I found your resume
on the web and noticed that you have worked recently at IBM in Research
Triangle Park, North Carolina. I'm interested in working in that
facility and I was hoping you could help me understand a little
more about the application environment there."
Now, pay attention, because this is what gets you in the door!
Follow your introduction immediately by saying:
"By the way, I'm putting together an e-mail list of
positions and leads that I am learning about during this networking
process. Do you mind if I send you a copy of my list from time
to time?"
Do you really expect anyone to say "No" to your generous
offer? Well, yes, some will turn down your offer, but you wouldn't
want to waste your time on those people anyway.
Ask for names, titles, and contact information of people who work
(or worked) on the same project. Ask about development plans. Chat.
Share experiences. Make friends.
This is how you generate genuine good will. And, of course,
you W-I-L-L deliver on your promise to send the e-mail list periodically,
because you are honest and you follow through on your commitments.
[Note: Any time someone gives you the name of a person
do an Internet search using that name. You may uncover articles
written by that person, an online resume or biography, references
to that individual's work or membership in professional organizations,
and all kinds of additional information that will help you in "talking
shop" and gathering even more information.]
Step 4.
Send the list and any other material that is relevant to your search
via e-mail to your contacts. Send your e-mails individually or use
the bcc: address field so that you don't violate your contacts'
privacy by broadcasting their e-mail address to everyone under the
sun.
Attach your skills profile to the e-mail. But don't make the focus
about yourself, but rather focus on what you can do for the other
party. Remember, this is not job searching (begging, pleading, etc.).
It is lead sharing. You are gathering leads by sharing leads
and demonstrating your good will and pivotal position as an important
information hub.
When you send the list follow up with another phone call to confirm
that your contact has received it. Use the opportunity to chat some
more and maybe share a recent experience or two.
[Note: Always give more than you receive. You will give
out copies of the same information to everyone you meet, but what
you receive in return from your contacts will be abundant, invaluable,
unique information and industry intelligence that in the aggregate
far outweighs your own generous contributions.]
Step 5.
Become friends and generate good will. Once you get some names in
your contact management system, and if the contact you are speaking
with still works at the company where you want to work, explain
that you come across lots of people with various amounts of Lotus
experience. Ask if you could refer some people you know (at no charge
of course) for positions where you yourself are not a match.
[Note: Never attempt to sell your information. If you
try to profit from your acquired knowledge you will totally blow
your credibility as an information hub that your contacts look forward
to hearing from.]
No one likes to be milked for information without getting something
of value in return. That's why I recommend that you call bearing
gifts. Lunch, e-mail list of leads, industry knowledge you have
learned. Do you have some examples of your work that might be useful
to the company? Do you have a thorny Lotus Notes problem that you
can discuss with your contact. Have you come across some interesting
competitive information about a rival company?
Always remember, as you acquire names look them up on the Internet.
The more personal information you know the easier it will be to
engage your contacts in conversation focused on your shared skill
set.
Step 6.
Don't drop the ball. Keep in touch during good times and bad times.
Keep everyone on your list abreast of your status. Your professional
contacts will appreciate knowing what you are up to, and that's
exactly the idea.
Very soon you will have many names in your contact management system,
including the names and titles of most of the key players locally
in your skill set, and you will be able to drop names with impunity.
For example, you will find it easy (and truthful) to say something
like, "Hi Jack, I'm a Lotus Notes Developer, and Mary Noteworthy
suggested that my experience with Lotus Notes might be a good match
for your own environment. You remember Mary, she used to report
to you before moving to IBM in Lexington, KY? Well, anyway, I was
speaking with Mary a couple days ago about her project in Lexington,
and she spoke very highly of you and your team..."
If you are not working at the present, then you have eight hours
during the day to make marketing calls, and several hours in the
evening to make more marketing calls and do additional online research.
The Resume Search Method even works if you are breaking into a
new field, or if the other party is far more experienced than you
are.
For example, your contact can tell you what it's really like (from
their perspective, of course) to work in a given field or organization.
They can also tell you how the field has changed or what they see
for the future.
They can help you understand the aptitudes and training needed
to get into the field and be successful, and they can give you the
inside scoop on certification and training programs.
They can give you insider information on companies, such as who
is in charge, what the culture is like, what kinds of people have
held the job you're looking at, what it takes to succeed in that
position, what new directions or changes might be happening soon,
how to customize your cover letter and skills profile to get noticed,
how to market yourself effectively and tips for interviewing.
Every once in a while, the person with whom you are chatting will
offer to put in a good word for you. When that happens, it can be
a real advantage for you. But whether you get that offer or not,
the information you have gathered can be invaluable in helping you
to sort out your options and present yourself more effectively.
Provided that you give as much attention to this process as you
give to learning and maintaining your skill set you will succeed
beyond your wildest expectations. Just always keep in mind, it is
NOT about you. It is about what you can do for the contacts you
are adding to your list. The abundant good will you generate will
take care of the rest.
Most of us use passive networking techniques to slowly build our professional
network. The Resume Search Method of Networking lets you turbocharge
the entire process and take full control of building your network
quickly and efficiently.
Return to Table of Contents.
Business Basics
Communicate Your Effectivness
One-half of all projects involving "external service providers"
will fail to meet client expectations according to a report issued
by the Gartner consulting firm at its Spring 2003 Symposium and
IT Expo.
The root causes of the failures, according to Gartner Managing
Vice President Linda Cohen, are a lack of groundwork set at the
outset, and a failure of communications to follow up during the
project.
Cohen is quoted as saying "The service receiver and service
provider should commit to regularly scheduled, formal meetings to
review the progress and achievement of objectives to ensure mutual
benefit. Failing to do this, the relationship can be seriously compromised
because corrections are not made in a timely fashion."
The lesson in the Gartner report for Contract Professionals is,
"Communicate, communicate, communicate." Effective communications
is essential, not only because it ensures that the project will
run smoothly, but it keeps your good work in front of the very people
who will refer you to future clients and recommend you for future
contracts at the same client.
This is why I recommend that Contract Professionals provide their
client supervisors with comprehensive status reports on a weekly
basis. Regular status reports document your work, and reinforce
your effectiveness to supervisors and colleagues.
This is not to say that it is OK for your client to require
regular status reports, because that is definitely not OK.
An employer requiring regular status reports is high on the IRS's
list of things that qualify a contract worker as a common law employee
of the client. What I am saying here is that you should voluntarily
provide regular status reports as a courtesy to your client.
Your strongest credential is your reputation, and delivering regular
status reports to supervisors and colleagues gives you an opportunity
to toot your horn without actually bragging.
Don't just report what tasks you have accomplished, but actually
explain to the company the value of what you have done. Dollarize
your accomplishments if at all possible, and relate them to the
future success of the project and the client.
Give copies of your current status report to supevisors when asking
them to write a letter of recommendation prior to the completion
of your project.
When creating your skills profile (functional resume) use past
status reports from your archives to create a bulleted list of benefits
to the client for each project you include in your skills profile.
You should also use your status report to document issues and concerns
relating to the project. Such documentation can save your backside
(and your reputation) if and when things should start falling apart.
Communicate, communicate, communicate. Do it often, and do it in
writing.
Return to Table of Contents.
Ask Dungaree Dan
Greedy Agencies -- There Ought to be a Law
Q: Dear Dan -- A few days ago, a copy of the agreement between
my agency and their client, came across my desk inadvertently. It
contained the rate at which they are billing for my head. Imagine
my surprise when I found I took a cut, down to $21, and they've
been billing $40. That's just about a 100% markup. CRIMINAL, in
my estimation. What is the law in the State of NJ and what is my
recourse, other than firing off a strongly worded email demanding
retro-pay, and withholding my last time-sheet until I see some results?
I've tentatively reached out to a couple of lawyer friends, and
some advocate groups that deal with this? I just feel, beyond anything
else, betrayed. -- Signed: Betrayed
A: Dear Betrayed -- I agree with you. The standard temp
agency business model supports evil, blood-sucking leaches, who
routinely take advantage of their privileged position as trusted
intermediaries to rob contractors blind. Boy, didn't that feel good!.
Unfortunately, treating contractors as so much chattel is not criminal.
Last year I wrote an article in the Contract Employee's Newsletter
called "How
Ordinary Staffing Vendors Incorporate Illegal And Unethical Business
Practices That Harm Both Contract Professionals And The Companies
That Use Their Consulting Services." Read it and weep.
From time to time legislators in the various states attemp to to
introduce legislation to limit the markup on human flesh taken by
temp agencies, but without a whole lot of success.
My advice to Contract Professionals is simply this: If you don't
like the way temp agencies and contractor recruiting firms treat
you, don't use them.
During the Viet Nam war there was a slogan that asked, "What
if the generals gave a war and nobody came?" I suggest that
the same applies to greedy staffing vendors. If you want to put
them out of business, just don't use them.
Temp agencies and contractor recruiting firms take at least 20%
above the actual cost of processing payroll for their contractors.
(Agencies take a minimum of 35% of billings, and payrolling overhead
never costs more than 15% of billings) That amounts to $20,000 per
year on a $50/hour billing rate, and $40,000 per year on a $100/hour
billing rate. That's money that goes toward the payments on your
recruiter's BMW that could just as easily be going into your pocket
instead.
The solution is to find your own gigs, using self-marketing techniques
such as the Resume Search Method of Networking described
above and other techniques that you can read about in the CENewsletter.
Once you have a contract assignment lined up you should immediately
Apply
Online to join P.A.C.E. in order to get the best possible
employer of record service and the best benefits package available
to ANY Contract Professional ANYWHERE in the USA. -- 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.
Older Workers Benefit Protection Act
This is a federal law that makes it illegal for an employer to discriminate
against older employees for benefits or to target older employees
for layoffs. Under this law an employer must give each employee
at least 21 days to consider a waiver not to sue offered by the
employer in exchange for early retirement benefits. Clients may
be subject to this law if they treat their contingent workers like
their own full-time employees and a legal claim based on co-employment
is filed for age discrimination.
On the beach
On the beach refers to unpaid downtime between consulting assignments.
The phrase on the beach is certainly appropriate when the downtime
has been scheduled in advance as well deserved rest and relaxation.
Nevertheless, on the beach is most often used facetiously to refer
to unexpected or unwanted downtime when a Contract Professional
is not billing and not being paid.
On the bench
On the bench refers to paid downtime between consulting assignments
for the salaried employees of consulting firms. The term derives
from the practice of consulting firms calling their off-site employees
home to work “on the bench” on inhouse projects when off-site
consulting projects are not available.
On-the-job training
Training that one receives while working for an employer or client.
Informal training outside of the classroom and obtained in the course
of one’s work. Resourceful Contract Professionals obtain their
best training “on the job”.
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:
- The Contract Employee's Handbook
- The Contract Employee's Newsletter
- The Contract Employee's Workshop
- Professional Association for Contract Employment (P.A.C.E.)
Return to Table of Contents.
Copyright and
Publication Info
Copyright (c) 2003, 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. We encourage you to freely
distribute hyperlinks to this issue of the Contract Employee's Newsletter.
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.
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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.
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