Employee or Independent Contactor?

An issue is starting to heat up that I believe will have significant impact in fields such as career development, workforce management, and the evolving nature of the employee and employer relationship. It involves the proliferation of private, entrepreneurial, and independent contractors and the hiring or contracting of them by companies. 

Projections are that a growing part of the future workforce will be made up of independent contractors providing relatively short-term project-oriented solutions for business. Where conflict may arise is in the legal enforcement of how employers classify and treat those among their workforce as to whether they are categorized as employees or independent contractors. 

Both federal and state laws have a history of protecting worker rights from employers who would seek to deny workers’ compensation coverage and other benefits to their employees by classifying these workers as independent contractors. In New Hampshire, for example, legislation became effective January 1, 2008, revising and broadly applying a consistent definition of “employee”, thereby increasing worker protections enforced by the New Hampshire Department of Labor. 

In the Federal government, Senator John Kerry introduced legislation in December 2009 matching a House bill that would increase the burden of employers to classify workers as independent contractors. The point being to secure workforce protections like workers’ compensation, Social Security, Medicare, overtime, unemployment compensation, and minimum wage for the greatest number of workers. 

It is good to know that the government is out there looking out for the little guy, and it undoubtedly keeps many employers honest. However, I am afraid that an unintended consequence of these protections may be to discourage employers from contracting with independent providers at a time when many of these workers want to work self-reliantly and to be free from the long-term obligations of an employee status with an organization. 

Employers may want to reduce legal compliance pressures by just hiring full or part-time employees and not take advantage of the strategic talent options available from independent contractors. This creates a challenge for highly motivated and skilled individuals who want more control over how they work. And it is to them that the burden lies in convincing business that contracting with them will not come with onerous worker protection strings attached. Otherwise, their dream of working creatively from one environment to the next will be in jeopardy. 

Independent contractors need to be noticeably clear with themselves that being independent means just that, on your own. Income and benefits both must be generated by the private worker. A networking trend that may help independents is in establishing exchanges or guilds that can negotiate for benefits such as health insurance. By using the economies of scale, independents may be able to provide for themselves the benefits they need but should not expect from traditional employers. 

Another area independents need to be clear about is in the language, terms, and conditions of their contracts. Contracts will have to be written in such a way that the independence of both the contractor and the hiring company is maintained. To write such a contract, both parties should be clear on the definition of “employee” for the state in which the working relationship is to take place. 

For example, in New Hampshire the recent redefinition of the term “employee” contains eleven conditions that must be met to exclude the independent contractor from employee status. And all eleven conditions must apply! Going into these contractual arrangements armed with this kind of knowledge places the independent contractor in a stronger position, because then they are then able to mitigate the concerns and reduce the hassles for the hiring company. 

There are many benefits for both parties in having temporary project-based contracted work. Despite the predictions of its imminent expansion as a practice, planning and foresight will be more necessary than ever. Here is yet another case in which adaptability and an orientation toward change will be called upon for success to be achieved. 

 

The Right Keywords for Your Resume

By now most professionals know how to strengthen a resume in a time of increasing recruitment efficiency and robust job competition. Attention needs to be paid to the use of effective keywords. 

Keywords are those industry buzzwords that let recruiters and hiring managers know which job niche you may be best at filling. Better yet, keywords alert Applicant Tracking Systems (ATS) that you may be worth interviewing, if the system has been programmed to highlight resumes with the keywords you have included in your resume. 

ATS is currently in use by many large corporations. It becomes an attractive tactic when the number of resumes submitted far exceeds the human eyeball-capacity of an organization. 

The technology is just a variation on standard search methodology made famous by Google. Instead of yielding web pages based on a set of search terms, resumes are selected based on a set of keywords specific to the position being filled. If you as a job seeker are being asked to upload your resume in plain text or rich text formats or to paste it into a web/database field, then chances are it could be screened by ATS. For your resume to not be rejected in a millisecond, it is necessary to have the right keywords which will prompt a selection. 

The challenge for job seekers and resume writers is to identify relevant keywords and embed them into resumes in a way that looks natural. Submitting a list of words and calling it a resume will not do. Resumes must be prepared in such a way that they can be read by an ATS and a human. 

How does one find out if they are utilizing the best keywords in their resume? There are several ways of doing this. For those seeking a new position in what for them is the same industry they have built their experience, then many keywords should be already known. It may just be a matter of systematically generating a list of terms directly related to your background knowledge and inserting them strategically into the resume. 

For those job seekers transitioning to a new or related industry some keyword research may become necessary. Here are some ideas on conducting that research: 

  1. Study online job boards for postings like or similar tothe kinds of positions you would consider pursuing. Note the industry vocabulary that is frequently used in both the headings and body of these postings.
  2. Identify the terms used in descriptions of your chosen profession in industry publications, professional associations, and the Labor Department’s Occupation Outlook Handbook web sites.
  3. Look at the profiles of professionals with similar positions on LinkedIn to see the terminology they are using to describe themselves.
  4. Poll your professional network to get their keyword suggestions.
  5. Staffing agency professionals, particularly those dedicated to niche recruiting, can be a source of appropriate nomenclature.

So exactly what kind of words should you use in compiling this all-important keyword main list? 

  • Words that are industry and job specific 
  • Words that highlight the job candidate’s experiences and qualifications 
  • Words that refer to hard professional skills 
  • And words that indicate useful “soft” personal attributes for the position. 

As an exercise, try writing your own ideal or fantasy job description. Which words are you using to describe the occupation? 

It is not enough to craft a resume with a killer profile, quantifiable accomplishments, richly worded qualities, and which is aesthetically pleasing. It is also imperative to populate the resume with the right keywords to land you that interview which could change your career and your life. 

Defining Yourself

If it is not too late, I have a New Year’s resolution suggestion to make to all professionals, whether unemployed, underemployed, or gainfully employed. The suggestion is to simply define yourself. 

Do so succinctly and economically. Define your value. What do you offer? How does your work community benefit from your input? Being able to professionally and exclusively define yourself is an advantage. To become known and recognized as a quality and reliable asset is a core utility of career development. The career gain that can be realized spreads across all employment scenarios. In fact, venturing forth without a way to define yourself leaves you at a disadvantage during a time when competition for great jobs is increasing. 

Large corporate institutions, as we have traditionally known them, are undergoing a transformation. It probably began way back with the growth of middle management but is now characterized as an increasing reliance on more horizontal teams that can cross-pollinate ideas and result in synergistic production.  

Many executives are becoming more coach-like in their function. Employees are desired for their ability to get along with others, have a strong work ethic, and to be creative problem solvers. Hopefully, your self-definition incorporates all these virtues. 

We know that small business is a major force in driving the economy. When small businesses start hiring, we can expect an easing of the high unemployment rate. What drives small business? People with ambition and smarts do. In the same way that an entrepreneur figures out and communicates their value proposition, each of us should be able to do the same. Being able to provide solutions, improvements, and advantages to the marketplace is the grist for small business employees’ definitions. You would not want your business to be a white bread commodity, so why tolerate it for yourself. 

The Internet has created a new entrepreneurial landscape that didn’t exist twenty years ago. In the decade just completed, expansion of information access by way of increasingly sophisticated gadgets coupled with the growth of social interconnectedness is spawning innovative and constructive self-employment opportunities. In the upcoming decade we can expect more information filtering and selection technology demanded, and perhaps created by, end users. Staying with this evolution curve can be the brand basis for many neo-entrepreneurs. 

Whatever your career direction or place in the workforce, knowing your niche, your unique importance, and your significance will advance your position with existing and developing prospects. And just as important as knowing your positive traits is to become skilled at presenting and displaying them. Be in the mindset that others, be they upper management, colleagues, customers, or clients need you and that your talents are worth acquiring. Find the self-marketing techniques that are right for you. Promote yourself with the confidence that comes from knowing who you are. 

So, with the start of this new year discipline yourself to go through some simple exercises. What I recommend involves selecting descriptive words about you. Begin with a single attribute that makes you employable such as “trustworthy”, “competency”, or “adaptability”. From there try seven word phrases like, “a valued professional expert solution management specialist”, “take impossible projects and make them happen”, “Communicate. Steer the ship as needed. Deliver!” Eventually, craft a complete sentence about yourself. Some examples include: 

“I offer focused and deliberate care to the patients of this facility”. 

“My extensive knowledge of CAD software and ability to work hard results in high quality production.” 

“Accomplished professional with a track record of improving educational and operational performance through vision, leadership, and team building.” 

Try it. Go forward into 2010 and beyond with your own definition of your worth. The benefit of doing so is within reach.