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When Good Contracts Go Bad...

Chris Souther
There are people in this world who thrive on contract jobs. My step-father for example, makes enough money working contract jobs part of the year to support his household, and has enough left over to also enjoy a full-time saltwater sport-fishing hobby during the summer months. He's a nuclear engineer. We should all be so lucky.

Others, like me, make good money on contract jobs, but usually only enough to keep from tapping into savings in between the contracts. While not bad, it lacks the regularity and relative safety that a permanent job offers. For people like me, contract-to-permanent job opportunities are the holy grail of employment possibilities. You get to see how well you fit into the organization and they get to see if you're a good fit. If things work out, then you probably made a pretty good contract rate for a few months and now you get all the benefits of a permanent position.

But what happens when contract-to-perm never materializes? What if you've done your absolute best for three months, or six, and near the end of the contract you're told that they won't be able to renew it or hire you on permanently, "At this time." Regardless of the reasons they offer for not renewing your contract or hiring you on permanently, most of us still question our performance and wonder if it was something "we" did or didn't do that made the difference.

Contractors are by and large good adaptors. Given the variety of people and managers we work with, we've learned how to adopt an organization's culture and work within the parameters we're given. As such, we usually can tell if there are performance issues at play. So if we did our jobs, what other reasons can cause contract jobs not to work out?

Budgeting: Many companies, especially publicly traded ones, live from quarter to quarter on allocated budgets. Most contracting positions are factored into a quarterly budget and if that budget should shift significantly from one quarter to the next, usually the first things to get cut are contract positions.

Requirements Change: In today's ever-evolving business world, department requirements are in constant flux. Quite often, a contractor is able to come in and get the job done, without having to get involved in office politics which can bog down projects. Many managers find that having a contractor onsite for a few months is enough for them to catch up. Once caught up, there may not be enough immediate work to justify the position.

Internal Politics: I mentioned this briefly previously, but one cannot underestimate the power of internal politics. Most managers would agree that they could always use more headcount. If one department manages to acquire an extra body, other departments are bound to be jealous. This can cause myriad problems internally and quite often, it's just easier to cancel the position until something else can be worked out.

Personality Conflicts: How many times have you ever clashed with those closest to you? Probably many. Given that personalities, even among family members and best friends, often clash, it's not surprising that personality conflicts occur between contractors and permanent employees. Unfortunately, the problem is not always made apparent as many people aren't confrontational and prefer to settle problems quietly rather than making public waves. In this situation, there isn't much the contractor can do. Should you decide to speak with the manager or parties involved, be sure and do so from a "What could I have done differently," stance rather than appearing defensive. Even if a manager didn't care for you personally, if they were satisfied with your work, they will usually agree to provide you with a good reference; and that's worth a great deal.

These are just a few of the reasons, other than performance issues, that contracts can and do end prematurely, don't get renewed, or simply fail to turn into permanent positions as one hoped. Contracts are an accepted form of employment these days, so just remind yourself that no matter what happens, every contract is another notch on your resume.

About the Author
©2005 All rights reserved
Chris Souther, Marietta, Ga, USA

csouther@mindspring.com

Chris Souther is a writer based just outside of Atlanta, Ga. When he's not fighting traffic or chasing his son around the house, he's...not doing much else. He used to enjoy woodworking, landscaping and fishing. For more information, you can view his not-oft-updated website at: http://www.mindspring.com/~csouther

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