Secrets of Successful Contractors

Moving to contracting has been perhaps the biggest factor in my rapid income growth... it helped me triple my salary in the space of 3 years and live a life of flexibility and freedom. 

But I didn't even know contracting was an option when I was first starting out in my career and in Change. I thought there was just Casual work (paid by the hour) or Salaried work (paid by the year). Getting paid by the day... NEVER HEARD OF IT!

I was a few weeks into my first Change role when a recruiter told me the day rate for a Change Analyst position at another company. I quickly multiplied the day rate by 365 and almost fell off my chair.

I played it cool... but inside I was astonished...

This kind of money was possible?

So I asked a colleague - and she confirmed, yep that was normal. Even for junior Change roles!

I've always been focused on earning what I truly believe I'm worth, and from that moment on, contracting was my golden goose. It's made me more money in a year than I dreamed possible so early in my career, which has allowed me to pay off my home loan faster, live in a beautiful Sydney CBD apartment, take long holidays and sabbaticals, work part-time to build my side hustle AND hire a cleaner, buy organic and specialty food, and just really enjoy the best restaurants, cafes and experiences that I want.

I'm so comfortable spending a couple of hundred dollars for a nice lunch out with the girls (we just went to Totti's... it was divine!). Before contracting, that would have given me anxiety!

But contracting doesn't come without its challenges and those who have moved to contracting AND been successful there tend to have a few similar traits and habits. 

Here's 8 qualities I've noticed in myself and them:

1) They know the market rates

They stay across the current trends of day rates in the project space and account for any ups and downs. They have awareness of what they're worth with the skills, experience and style they have, but also all the things they need to factor in to their day rate... because salary and day rate are not like-for-like, there are pay and benefits you WON'T get when you move from salaried, and you need to make sure you're not worse off overall.

2) They are confident in themselves

A big reason Changies are reluctant to move to contracting is because they worry they won't secure another contract. They fear being out of work for weeks, months, or even years, and still have bills to pay. Successful contractors have a different mindset: they be like: "I know there'll always be more change, always be more projects, and I'm key talent so I'll always be in demand." To put it in perspective... I've never been out of a contract unless by choice (such as when I took 3 months off to travel or when I moved to consulting full-time). And I STILL get contacted by 1-2 recruiters a week.  I know other Changie contractors who do the same - funding their own maternity leave, travel time, side hustles, or just bouts of time off to do whatever they want. 

3) They treat themselves like a business

Being a contractor is being a business. Now the truth is, even as a salaried employee... you should be treating yourself like a business. But most people don't - they think they can't ask for more, set work up the way they want, or change jobs if they are not feeling served by their current role or company (they totally can). Contractors are literally independent workers, and some even invoice directly with an ABN... talk about treating yourself like a business! And the win for organisations is they don't have to bring on another permanent headcount to their books, and usually fund the Change talent from a project budget rather than a BAU budget. It can be a smart business contract from both sides.

4) They focus on the work, not the politics

I hate playing the games of hierarchy and politics in organisations. Quite literally - life is too short. I want to build great trusting relationships, deliver incredible value, and have amazing impact. Being a contractor means you're not constrained by the standard rules of career progression - when you are ready to move on or move up, you just do it (whether that's in the same organisation or a new one). Contractors focus on delivering high quality work as quickly as possible, and that's another reason why leaders and projects love hiring them!

5) They embed themselves in the organisation

Ok this seems to contradict #4 but hear me out... contractors who think they're "too cool for school", throw their weight around, or step on everyone's toes in the project or business usually do not last.  Yes, you might be hired as a contingent worker into the business. But to build the trusting relationships to lead great change, you have to feel like an employee of the business. This means:

• being proud of the company
• participating in Change team, project team, and/or business team rhythms
• completing people processes, like development planning, if it's required
• and just genuinely feeling part of the people and brand.

Not only does it make your experience better (I've made INCREDIBLE friends through my Change contracting work and found a lot of meaning feeling part of an organisation), you'll also lead better change and be more likely to get your contract renewed. Wins on all fronts!

6) They embrace flexibility and freedom

Projects usually hire Change late and aren't really sure what Change is or what to do with their unique skills. As a Changie, you'll often need to pivot on what you thought the project, responsibilities and tasks of your role were. This is especially true for contractors, who have less attachment to "role", "title" and "job description". This can totally work in your favour, too - I've started contract work not even knowing what project I'll be working on and found myself on huge transformations impacting 100,000 people. It was a happy Lata! :)

7) They make friends with recruiters

I have incredible relationships with a lot of the leading Change recruiters in Sydney and seriously - they are awesome, savvy, passionate professionals who know their space, their clients and their talent pools. Forget applying via job ads, really good recruiters know what you're about and match you to roles proactively (it's happened to me a few times!). Yes, they'll reach out to you in the midst of a contract, or coyly ask what your upcoming plans are - but honestly, that's part-and-parcel of what makes them awesome... and the opportunities abound.

8) They own their own development

When you're a salaried employee, you totally get more attention put on your training and development. Well, that is as long as you're in a good company that actually cares and has real budget to invest in you, no matter what level you're at... The beauty of contracting - you earn soooo much money that you can invest in whatever training YOU want. Contractors know they should be keeping their skills up to speed, especially with the future of work, and so lots of them invest in their own development. The difference is they often choose industry-based courses or executive coaching over university degrees and masters, because they want to apply the knowledge and skills immediately for their clients. 

After all this though, the top thing successful contractors do to get contracts and get contracts renewed is to be really good at what they do. The world of Change is changing and mediocre methodology-focused Changies, sadly, aren't always getting their contracts renewed anymore.  That's why a fit-for-purpose, practical application program like my "Leading Successful Change" course is awesome. 

Unfortunately I've just closed registrations for LSC while I kick off my March group cohort. But you can join the wait list here.

Talk soon, I've got a fresh group to get set up on their magical journey to leading great change :)

Lata xx