Good contractors should be cost-effective and deliver great value…so why expect they’ll be cheap?

Since moving from an employed to self-employed ‘status’, I've been surprised at the number of organisations that expect I should work for a much lower day rate that it would cost them for a permanent equivalent. Yet my contracted status already absolves a client of any HR responsibility, and delivers direct financial savings over an employed alternative - no national insurance, bonuses, health or pension contributions; no 'housekeeping' nor administration costs; clients do not fund my holiday leave nor public holidays; I incur no costs for training nor for the corporate ‘shindigs’ an employee would expect to attend.

During the course of a working partnership I commit the time clients have contracted to deliver the outcomes they require, with no guarantee of further work and during time away from developing revenues elsewhere. I’ll make myself available as quickly as possible when they want to turn the resource ‘tap’ back on again, at which time I will likely be asked to take the ‘hit’ of 45-day payment terms or worse - and that’s OK. My working world is of my own creation and is absolutely the right thing for me and for my clients. But it is a business, not a charity.

So I will continue to insist on appropriate remuneration for my experience, expertise, the fresh perspective I bring and the results I deliver…and my clients will continue to avoid the cost and responsibility of a full-time overhead!