Hi everyone!

Today I've got a classic Hannah rant for you. About contractors.

Contractors are a term we use in Aotearoa New Zealand to describe temp workers. Here in NZ we have traditionally had a large temp workforce – especially in projects and IT and yet, so many people – many of them the actual contractors themselves – seem to utterly misunderstand the role and how it works. It's a tad mind-boggling.

There's a whole bunch of problems with all of this, but to get to the rant we first need to discuss the different types of employees. Because while they might all beep in using the same door each day, use the same office chairs, and all talk smack about Sandra in the lunchroom, they are in fact very different beasts. Let me explain ...

There are two types of employees

The permie

The actual proper employee! A delight!

Except for when they aren't. With a permie you have to manage their development, do all that health and safety nonsense, make sure you're giving them work they like, and generally keep them happy. And if they totally suck you can't just bail on them. Instead you have to go out of your way to help them to not-suck as much as possible. Performance plan here we come ...

But because you've assumed the risk of the employment, and because you've thrown in holidays, professional dev, Christmas parties and more, you get to pay them less. Huzzah!

In the event you need some additional capability but don't want to take on all the rigmarole of a permanent employee – the answer is: get yourself a contractor!

The contractor

Instead of doing the development, care, and all the rest of the nonsense, organisations can just outsource their responsibilities and the employment risk onto the worker. And people want to take that on because in return for assuming that risk and responsibility, they get to make (sometimes a lot) more money than permanent employees.

This is the lot of the contractor. Paid more, higher risk, lots of contract negotiations and extensions, very few one-on-ones with a manager, and no annual performance reviews (if I had to pick a single reason to become a contractor, the lack of annual reviews would be a very strong contender).

(If it isn't obvious, I'm exclusively talking about the corporate type of contractor and not talking about the huge number of "independent contractors" who are basically being exploited for tax purposes).

In sum:

1. Permies are paid less because they've assumed less risk and responsibility (I'm going to ignore the fact that given recent economics that statement is far less true than it perhaps was a few years ago).

2. Contractors are paid more because they're assuming more risk and responsibilities.

Here’s the rant part

It seems wild to me that people don't get the tradeoffs involved with each of these roles. But mostly, I want to rant about contractors taking the piss.

Ah, contractors! You're meant to be the hello fresh of employees, turn up, make it easy to get stuff done without the hassle of working out what to do with half a cabbage and a random assortment of cans. But that seems so rarely to be the case. Sigh.

Instead, there's a ton of contractors who act completely entitled to things they explicitly traded away. No, the organisation doesn't have to give you choice pickings of work, maintain your skillset, or spoon feed you directions. That's not the deal. The deal is you turn up, do the job (ideally well), and at some point they won't need you anymore. And don't forget that you did take on the responsibility of your own professional development. So, um, maybe you should actually do some? But don't worry, the bar isn't high here – maybe read a book or two? A few articles here and there? Keep up with the general chit chat for your role? Look up an unfamiliar concept online? Heck, just ask ChatGPT for the latest titbits. And if you end up on a project that isn't quite what you're used to or want – kind of tough biscuits mate.

You are there to fill a temporary capability gap in the organisation. That means that if choice positions come up, permies get dibs and you're compensated for the lack of consideration in your paycheck. And while we're talking about money, please, please, don't let that money go to your head – I've seen heaps of contractors who think they are more skilled than the people they're working with and that they're getting paid more because of it (they really aren't – they're being compensated for risk not for skill). Or if they didn't think that at the start, they begin to believe it after a while because why would they be paid more if not because they were more valuable (they're building a logical house of cards).

It's all quite simple. Transactional. And if you don't like it, then you have two options:

1. Build a niche, a network, and a strong rep (you'll have more choice)

2. Go back to being a permanent employee.

Because being an entitled jerk is making it harder for all of us.

End of rant.

As always, I would love to hear your thoughts on this (or anything else), so do reply to this email, DM me on LinkedIn, or send me a letter via pigeon. 

I cannot tell you how much I like hearing from y'all!

And until next time, stay excellent! 💖
Hannah