A Bi-Monthly Newsletter
Volume 6, Issue 3, May 2003
Careers & Education
STC WVC Home > Newsletter Table of Contents > So You Want to be Self- Employed?
So, You Want to Be Self-Employed?
On April 17, 2003, The STC Willamette Valley Chapter hosted Thomas J. White’s presentation of The Independent Contractor in an Economy That Sucks—Or Why I Gave Up My Autonomy and Went Over to the "“Dark Side”. Tom White is a senior member of the STC, and a frequent seminar presenter for the Willamette Valley Chapter. He has been a technical writer and communications consultant in the Portland area for over 24 years.
This presentation was especially topical, considering the state of the economy and employment opportunities for Technical Communicators in Oregon at the moment.
Does the Promise Match Reality?
Tom’s presentation took us full circle through his experiences—from the initial excitement of deciding to become self-employed, through the realities of being completely responsible for keeping the jobs coming in, negotiating and administering contracts, collecting the bills, living without benefits, getting the products out the door, and returning to find comfort in the relative security of being a captive employee.
Why Do Clients Hire Contractors?
According to Tom, clients usually have very specific motives for using contractors. Some of those reasons may include
- drawing on specialized skills not available from their other employees,
- meeting tight deadlines when resources are short, being able to obtain the services without the expense of providing benefits,
- filling a short-term need without a permanent commitment,
- and injecting the influence of a neutral party into a problem-solving situation.
Which Should It Be: 1099 or W-2?
Tom reviewed some of the differences between independent contractors (contractors) and staff writers (employees), and there is certainly more than just the income tax reporting differences between the 1099 and the W-2. Because Tom has spent time in both roles, his discussion of the pros and cons of each was based on considerable, hard-earned experience.
A brief overview of some of the differences in the two roles reviewed by Tom is included in the table below.
Table 1. Some differences between independent contractors and employees.
| Independent Contractor (1099) | Employee | |
|---|---|---|
| Revenue/Income | Irregular – based on having billable hours to invoice and the payment practices of the client. | Regular pay periods. |
| Benefits | Must pay for own benefits – expensive. | Provided – usually includes training and other perks. |
| Cost to Client/Employer | Usually a negotiated hourly rate based on services to be provided and current market rates for those services. | Total cost of an employee to the employer is typically two times the employee’s salary. |
| Business Development (marketing) | Totally responsible for all future jobs—can accept or reject at will. | Work is assigned—usually based on a commitment made by the boss. |
| Time Management | Must juggle time between getting the business (10% to 25%), managing the business (5% to 10%), and doing the business (65% to 85%). Can be flexible on work hours. Can usually focus entirely on the assignment, unburdened with other business management responsibilities. | Must meet employer’s schedules, but has regular time off. |
| Work style/resources | Usually works alone and with limited resources. | Frequently a member of a larger team with additional resources to draw upon when needed. |
| Impact of shifts in the economy | When economy is bad, rates become very sensitive; contractors are usually first fired, but first hired when economy recovers. | Business may absorb some of the impact, salaries tend to be more stable, but jobs are still at risk. |
Although there is often a perception that independent contracting bears the greatest benefits for technical communicators, the reminder was that there are risks and trade offs not generally borne by the staff communicator.
Tom indicated that there was a “self-employment paradox.” To quote directly from his presentation, he said, “You trade flexibility for complexity. Although your time is your own to use as you please, it gets fragmented and more difficult to manage as you juggle multiple clients and broader responsibilities.”
What Are the Trends?
Tom wrapped up his presentation by touching on some of the trends occurring in the technical communication profession in the Portland area. There is an emphasis on relevant, recent experience; a focus on skills with the tools of the trade (Robohelp, Authorware, etc.); and the ability to be an information manager. There is an increasing migration of technology jobs off-shore. Opportunities continue to exist – but not in high tech at this time.
Still Want to Be a Contractor?
The bottom line is that anyone choosing the path to self-employment needs to develop a long-range strategy with measurable goals and objectives; realize that building a business is a never-ending process; and clearly understand the risks as well as the benefits.
Kay Wiggins is a Technical Editor with a consulting firm that specializes in engineering, natural resource assessment, and land use planning. She is a member of STC, and is currently concluding her course work for the PCC Technical Communication Certificate. Kay can be reached at wordsmith46@attbi.com.
