Contract work the wave of the future?

Robyn young /for metro canada

Craig Barbisan plays with his two-and-a-half-year-old son Nolan in the basement of his home last week. He’s been a contract worker for the past seven years and says a benefit of contract work has been a more flexible work schedule which translates into more time with his family.

An IT professional, Craig Barbisan has spent the last seven years working contract to contract for different companies.

His longest project lasted about two-and-a-half years, and although his job security has at times been tenuous, he says he wouldn’t trade the experience he’s gained.

“You constantly have the opportunity to do new things,” he said, sitting in the living room of his renovated, Beach-area home where he lives with his wife and young son.

With contract work, each job is a new challenge; the learning curve is steep, he said, but a contract worker can come out of each project with a brand new set of skills and contacts.
And, as long as you manage your money well, contract workers have the potential to come out ahead financially.

The trend toward contract over full-time employment is in full swing, says Robert Waghorn, spokesman for Monster.ca.

“Within the … Canadian market, part-time has been the favoured option currently,” he said.
This movement is partially motivated by employees new to the workforce who prefer changing jobs and companies frequently, and partly the result of employers tightening their belts and choosing to save on benefits and pension plans.

Barbisan said for a young worker willing to take the risk and looking to build their resumé, the advantages of contract work can be tenfold but there are a few things to keep in mind.

“It’s important to have a good cash cushion and adequate emergency funds on hand to tide you over in between contracts,” says Tina Tehranchian, a Certified Financial Planner with Assante Capital Management.

Most financial advisers recommend stashing three to six months worth of salary in easy-to-access liquid funds for emergencies, such as a sickness or job loss, but it should also be a matter of practice for contract workers who are often between projects.

Another challenge is remembering to set aside money for taxes.

Working with his accountant, Barbisan has found it easier to pay his taxes monthly rather than saving up the cash and waiting until year’s end.

Maybe most important of all, Tehranchian said, is securing health and insurance coverage suited to the employee’s needs.

“You have to look at how big the risk you’re covering is,” she said.

These days, Barbisan is starting to lean toward full-time employment now as his family responsibilities grow with son and another baby due in February.
“Your tolerance for risk changes as your life circumstances change,” he said.