About Contracting

‘Freelancing’, ‘Contracting’, ‘Interim Managers’, ‘Contingent Resources’ – there are as many names for it as reasons why great people like you become “contractors.”

So what is contracting? For companies, particularly in today’s tight job market, there is a shortage of critical skill sets and a greater need for speed of delivery. This has resulted in a steady, year-on-year growth in New Zealand’s contracting workforce. Increasingly accepted, some companies are reporting up to 30% of their professional, ‘white collar’ workforce are freelancing contractors – self-employed, life-style contractors applying their talent to organisations to achieve outcomes, without the ‘downsides’ of corporate employment.

Common benefits and reasons people become contractors:

  • Contracting can facilitate an industry shift – proving skills are transferable
  • To bridge the gap during career changes
  • Enable some focussed delivery and immediate results without the induction and up-to-speed requirements and internal politics of employees
  • Increased choice and self-determination of working as a sole-trader
  • Life-balance versus working as a ‘corporate warrior’ – often able to telecommute
  • More certainty when term-contracting than experienced as an employee
  • Higher daily rates for the same work or an opportunity to enjoy less-demanding work for a period

Meanwhile, companies are bridging critical skills gaps with contractors, reporting:

  • Skilled freelance talent being engaged short-term for strategic reasons, to supplementing internal capabilities, and for operational outcomes such as seasonal spikes and extended leave cover
  • Higher return on investment and lower labour costs for contractors versus employees
  • Time to recruit quality permanent employees versus contractors ‘deployed next week’
  • Contractors are an ethical means to employ when undergoing or considering organisational changes
8 reasons business benefit from having contractors

Link to Ministry of Business, Innovation and Employment (NZ Government) article: Contractors v. Employees (Oct 2016)

Are you right for contracting…

Executive contractors need to be experts in their specialist area – with skills and capabilities organisations want to pay for.  When engaging an executive contractor, organisations often try to over-skill  for the assignment to be confident the job will get done effectively and with minimal on-boarding and preparation.

…and is contracting right for you?

Executive contractors need to be comfortable with periods of uncertainty.  Assignments can finish prematurely or be extended and assignment availability (demand for a specialist skill) can be unpredictable and vary greatly.  This is usually more a factor of the market and timing than it is for your skill-set.
You need to be comfortable with hitting the ground running right from the point an assignment begins.  Company inductions and time to acclimatise which are more facets of permanent employment don’t exist – it’s more likely to be ‘quick introduction to your immediate team, fire escapes, coffee machine and facilities, and then get down to delivering results.’

The Challenges – how we help

Even for seasoned contractors, there are some common challenges we hear about.

The most common challenge for a contractor is networking and finding the next assignment – while working on a current engagement. Often this results in gaps between assignments. We take care of this for you – we sell your services and capabilities into clients – our team knows your skills and our team are continuously networking and finding your next role.
How many times have you heard “not the required industry experience”? Our clients have tested Emergent and trust our judgement – making it more likely for an Emergent contractor to cross the industry-divide
We pay you and invoice clients, thereby bridging the invoice-to-cash period, covering various client payment terms and collection risks
A lot of the time roles are urgent appointments – clients need quality help now. There’s no time to call around personal networks to find available talent. Clients make one call to the only Auckland company dedicated to, and with a reputation for, delivering quality executive contractors at pace. Emergent.
Clients often require this of all contractors. Emergent can cover this at a minimal daily charge per project or point you in the right direction for annual policies (Note Emergent and its team members are not insurance or financial advisors)
Our automated systems request company approval as soon as you enter them on-line, anytime 24 hours a day.

Other things to consider that Emergent can assist with:

  • GST and withholding tax
  • Company set up
  • Invoice formats (if GST registered we create your invoices for you)