One great advantage of working in today’s bustling economy is the various ways that professionals can be employed.
In addition to the traditional nine-to-five job, employees might earn their entire pay from the comfort of their home or might work flexitime to make it home in time for their kids. Just as the professional workforce has transformed itself for this modern economy, recent graduates and young professionals can transition from full-time or part-time work into independent contracting and earn a great living wage.
Many sectors rely on independent contractors (IC) who have specialised skills to complete projects related to their industries. They might find work in a number of industries, including:
- Healthcare: within the healthcare industry, numerous opportunities abound for those interested in medical billing and coding to contract, in addition to opportunities for contracting as at-home care nurses.
- Construction: traditionally, construction has always relied on the contract system as it relates to the bidding process and building projects.
- Internet technology (IT): IT has seen an explosion of opportunities for professionals to work on contract to complete particular projects – for example, web design.
- Education: even educators can teach on contract, as a number of private online schools have launched in response to a demand for online tutoring and education.
These are just a few of the many industries where the opportunity to work as an IC is available.
The opportunity is there for professionals desiring to exit the nine-to-five schedule; however, establishing a business that will generate a living wage might be difficult. Those prospective contractors can approach this transition in one of two ways:
Slowly transition from full-time, on-site employment to independent contracting by contracting on a part-time basis. After establishing a client base, move to part-time status until retaining enough clients to support contracting work full-time. Transitioning into independent contracting is probably suited for those who have established a client base from which to work.
- New contractors could work for a payroll business, which is an intermediary between client and customer. Umbrella companies and limited companies can help would-be contractors develop a client base by acting as an intermediary between the client and the IC. With umbrella companies, a contractor essentially becomes an employee. Umbrella companies assist ICs with the administrative tasks related to payroll, providing help with IR35 and National Insurance contributions. With limited companies, contractors assume administrative responsibilities.
For those trying to get their feet wet before actually committing to working as an IC, the latter option is probably the best to establish a client base.
Independent contracting is a great way to gain valuable experience while building a business for both young professionals and recent college graduates who want workplace autonomy. A number of fields have adapted to the ever-increasing volume of work by going outside of the company to hire contractors in an effort to seek specialised expertise. For young people, independent contracting is a way for them to take control of their time, but more importantly, a way for them to control their salary.
