Contractors happy chappies despite pay cuts

Beverley Head
Tuesday, 01 September 2009 08:31

IT Industry - Market

Almost a quarter of Australian 1 million contractors have suffered a pay cut as a result of the economic slowdown, and 38% are facing increased competition for gigs – but most would prefer to remain independent professionals rather than become employees.

In what is being claimed as a landmark Australian study, a survey conducted by Monash University has found 80% of contractors are happy with their careers as independent professionals and 87% are happy with the sort of work they do. Only around one in five contractors is considering throwing in the towel.

And as for those paycuts – they weren’t so much forced on them, as negotiated, with contractors willing to share the pain with their clients as they navigate tough times.

The survey of 256 white collar contractors was skewed to IT , with most respondents performing work in that sector. Respondents were also mainly male (62%).

The mean age of survey respondents was 38 although the age range was from 18-74, with the number of hours worked each week ranging from 8-70. On average respondents had worked as an independent professional for just over three years and 81% of those surveyed held a diploma or university degree.

According to Dr Tui McKeown, Deputy Director of SEIRnet (Social and Economic Interface Research Network) at Monash University, which performed the research during July, this is the first research targeted at understanding what motivates contractors. “SEIRnet is a group in the department of management and we mediate between the academic world… and real problems that management face.”

She said that the research; “Really turns a lot of HR rhetoric on its head and clearly shows that there is a lot more value in these people,” cautioning against HR departments viewing contractors as nothing more than guns for hire.

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