Nowadays, contract work is becoming more acceptable in many industries as the global economy is changing.
According to a web polling conducted by recruitment consultant Robert Walters, half of the 4,288 respondents said that they were happy to take on contract positions. For respondents in Hong Kong, 42% said they were happy to take on contract positions and another 42% said that they would take up contract positions only if there are no permanent options.
It is obvious that employers tend to hire contract workers in tough economic conditions in order to control head count costs and maintain productivity. On the other hand, Matthew Bennett, Director of Robert Walters Hong Kong, comments, "Candidates are also increasingly focusing on the flexibility that contract work can offer; from hours worked through to the experiencing of different work environments and roles."
Benefits of Contract Work
Comparatively, permanent jobs are more stable than contract positions. Then, what are the benefits of contract work to job seekers? Sommer Owens, Contracting Division Manager of Robert Walters Hong Kong, says, "Contracting provides a foot in the door with an organisation or an industry sector that the job seeker may not ordinarily have the skills or experience for, as hiring organisations often show greater flexibility in terms of selection criteria for contractors than permanent staff." She adds that it is a stepping stone for the currently unemployed to move on to the next permanent position. "The job seeker's willingness to take up contract work shows a strong work ethic and is viewed positively by future employers. It is quite common for organisations to offer contractors a permanent position once the individual has shown a high level of capability and have integrated well into the company's culture."
As for the pay, Owens says that some companies are willing to offer an attractive pay for a short-term assignment or for a highly urgent role with an immediate start.
Contracting in HK
In Hong Kong, IT and telecommunications tend to hire most contractors because of their project-driven business nature. Yet, the current economic downturn has increased the number of contract roles in banking and finance. Owens adds that the business support sector also provides lots of contract positions due to secondments and projects that utilize support staff on a fixed-term basis.
What to Look for
In choosing contract jobs, job seekers should pay attention to the nature of the work itself, says Owens. If they take up a contract job while continuing to look for a permanent job, then they have to understand the implications of breaking a contract, both legally and in terms of their reputation. "If the contractor leaves part way through a mission critical project then the damage to their reputation may last for years," Owens says.
Owens reminds job seekers to ask the following questions when they look for a contract job:
- What will the duration of the contract be?
- What is the possibility of extension or conversion to permanent at the end of the contract?
- On payment: How do I get paid (e.g. by direct deposit or cheque)? How frequently will I be paid? How long do I have to wait to receive my first pay?
She also says, "Asking about the expected rate can be helpful but many firms will negotiate the rate based on the successful candidate's skills, so this information may not be available at the start of the recruitment process."
Source: JobsDB HK
Updated: June 2009