What to do when government contract work dries up...

The changed labour market has had a huge impact on professional contractors at all levels of government. While we’re seeing definite signs of change now, as well as hearing a lot of positive things about the future and new public sector work programmes, we know that the past months have been decidedly tough for people working in the contracting space.

Working as a contractor means you’re essentially self-employed—in fact it’s the flexibility and chance to ‘be your own boss’ that attracts many people to contracting. But being a contractor during the good times is very different from life during the bad – so we’ve put together a few tips on how to manage contracting, particularly during a slow market.

1. Take advantage of your connections

As a career contractor, you’ll no doubt have plenty of friends in many companies across Wellington (or New Zealand). If you’re finding that work is drying up, the best move you can make is to start calling around to see where there are opportunities. Make a list of the people you know: recruitment consultants, managers, other people in your field and get on the phone!

2. Help your recruitment consultant!

If you’re working through an agency, chances are they’ll often be pitching for new roles. If they think you’d be good for a position, they’ll usually need some extra information from you to ‘pitch’ successfully. Make sure you answer all the criteria they ask for in a way that’s simple and effective. If you can, get it in ahead of the timelines, so if there are any problems they can get back to you quickly.

Be aware that there can be a lot of candidates vying for these roles, so you should always target your CV to specific pieces of work.

3. Focus on the good things.

While there are less contracting opportunities available during a recession and a time of government cut-backs, there are also less contractors around to fill them. Since the recession began, there’s been a slow move of contractors into fixed term and permanent roles. Many labour reports have shown that contractors are becoming more interested in finding a ‘secure’ role.

This means that if you stick it out, you may have less competition to get these positions. You’ll also have a chance to build your brand and network, so that once the market picks up again, you’ll have a strong reputation to leverage new contracts with.

4. Do what you have to do

Of course, if you aren’t finding new contracts, it may be time to consider a fixed-term role until the market changes. It’s important to think about what’s best for you and your business, especially if you have financial concerns. Your recruitment consultant can help you make the transition to full-time, permanent work.

You may also want to offer different services or extra services that will make you stand out from other contractors on the market; for example, taking on extra work, offering extended services or lowering your fees if you are trying to secure a long-term opportunity or business relationship.

We're operating in a changing times and the recruitment market doesn't look the same this year as it did last year, so we're all having to be innovative in looking at new ways to deliver our service offerings.