Posts Tagged ‘independent contractor’

The Employee is Dead

Wednesday, June 30th, 2010

I don’t know about you, but I’m active in various social networks. And, apart from what I consider to be a few disreputable professions, I’ll connect with just about anyone. After all, that’s what networking is about. First you connect, then you get to know one another. Then you might even “like” someone, and eventually you’ll get around to talking about the nature of your businesses.

Every now and then, I’m contacted by someone who’s looking for another job. Maybe the person has been made redundant, or works for the boss-from-hell, or would like to move to Europe or the US. Invariably, I’m asked the same sort of question: Do I know of anyone who is interested in their skills. Some even send me their CVs (resumes). My pat answer is that they’re asking the wrong question. It’s not a case of whether or not someone will give them a job; rather, it’s a question of the value are you offering.

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A typical “employee” costs the hiring company at least 40% more than the “employee” receives in taxes and benefits. The value that you offer must exceed, at a minimum, 140% of what you think you should be paid. If all you’re doing is filling time, then you shouldn’t expect to be hired. Any entry level person can fill time as easily as any unskilled person. The people who are entitled to higher pay are those, and only those, who bring much more value to the company than they cost. That’s the criterion. Age doesn’t matter, whether you’re married or not, is irrelevant, and your apparent seniority is of no value. So, stop pretending that it is. No one cares how many years experience you have. If you’re so good, then prove it.

If you want to get paid what you think you’re worth, then package yourself as an independent contractor and approach companies with a view to supplying their non-core business. Let them outsource to you.

I’ve had sales people and project managers tell me their the greatest, but that they want a company to hire them so them. I say, let them demonstrate it as independent contractors. If you’re the great sales person, then put together a plan for how you will sell their products or services as an independent contractor. But, don’t expect them to hire you. Why should they?

The flip side of this, of course, is that you’re not beholden to just the one company. Aim to provide your service two three or more simultaneously. It’s your expertise that you’re selling; not your time. If you do this, then you’ll never have to worry about being employed; and companies will clamour for your expertise.

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Poor Theo: Risking his children’s inheritance

Friday, January 29th, 2010

How often have we heard him say it? “Why should I risk £xxx,xxx of my children’s inheritance on . . .?” Of course, those entrepreneurs making the pitch for his investment money are too terrified to say anything back to him, so they just hem and haw, while being interrupted by an investor who is really asking what to him is a rhetorical question.

Well, Theo. I have a question for you. At the moment, it appears that you’re worth about £135 million ($223m). With five children, I make that roughly £27m each. Investing in small businesses is risky, don’t you know. So, however much fun it is to be a dragon, you probably ought to look for something to do that’s less risky.

Banking is out, of course. It was they who started the mess we’re in. Maybe, you should just put a big safe in the floor of the house you own, with its full gym and swimming pool, so there’s a place to store it. Oh, and stop acquiring all that “rubbish” that you’ve confessed to buying in your new book. Then, just maybe, your children will be able to start their lives somewhere above the poverty line.