Mar
30

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The Pros And Cons Of Consulting During Job Search

The idea of consulting during job search sure sounds good. Sounds like I can:

- make some extra money or fill a growing hole in my bank account

- keep my skills fresh and perhaps earn my way into a full time role

- show employers that I kept busy working while I was “in-between”

Yes, it sounds good. And it can be.

But, as with most things, I like to look at both sides of the issue. Because there are times when “sounds like” isn’t good enough. After all, you don’t get a bunch of “do-overs” in job search. If you don’t do it right, you can damage your ability to get a first round interview and, eventually, make an offer hard to come by.

Why? Well, you’ll find your answers below:

The PROS

Well, you heard some of them in the “sounds like” section up above, but here they are in more quantity and more detail . . .

1. Clearly there is a significant financial benefit to consulting. If you were laid off and received a severance package, it can extend your nest egg for a few months. If you are into your savings already, consulting can ease some pretty big concerns. Consider this the number one benefit.

2. While there probably is not much real value to “keeping your skills fresh”, there is a perceived value here for employers who can see an extended job search as unproductive down time. The question you might fear from an employer: “Whatever did you do for 6 months?”

3. Consulting for a company, especially one on your target list, gives you a chance to test drive the environment, the culture and “the boss”. And, if you are a hit, you can build a nice story for yourself. One that can pave the way for a job offer down the road.

4. You’ve heard me say it before: you can’t search for a job 12 hours a day. So the benefit here is that consulting gets you out of the house in a business environment. This is important for two reasons. First, you are kept in business dress (even if business casual) which helps you get out of your shorts and flip flops. Second, you maintain active knowledge of the corporate culture. As you go in and interview for jobs, you have the correct sense of urgency. You don’t look like someone who has been shut-in staring at job boards for days on end.

5. Consulting is good networking. Not only does it get you out into the world of the working (the folks who are aware of those hidden jobs you’ve heard so much about) but it also opens a door to other companies. The boss who loves your consulting work should know that you are looking for full-time employment. They should also know a lot of other people with whom you could network.

The CONS

1. Consulting is a distraction away from your #1 objective – finding a job. How big of a distraction it becomes is up to you. A great consulting assignment can become all consuming, exciting and very financially rewarding. If you don’t manage your time, it can steal away precious hours of networking.

2. Contracts can be hard to come by. It takes really strong networking because consulting jobs don’t tend to show up on Monster or be bandied about by recruiters. You have to earn them and they can take time to find.

3. If you were expecting $200 per hour, you may be in for a letdown. Many consulting contracts are really not consulting at all. Rather, they are just contract positions. Glorified temp jobs. You are filling in for someone who is on disability or on maternity leave. So, don’t be surprised if the pay is less than you hoped.

4. Related to #3 above, consulting sounds nice because it carries the promise of a big, strategic assignment. That you’ll be brought in to solve a significant company problem or restructure a struggling department. Could happen. But, more likely, that project will go to a consultant who has done that before . . . as a consultant.

5. As a consultant, you are the person from the outside. Don’t be surprised if you are not invited to lunch and are not included in company functions. You come in. Do your job. Leave. If you are a social person who likes to be part of the fabric, this may make consulting a bit less interesting to you.

A Few RULES

1. If your name is Frank Johnson, everyone who sees that your last job was with FJ & Associates will know that it is just you. That there are no associates. Never were. So my advice is don’t create a consulting company just to do consulting. Unless you plan to move into that career full time and long term.

2. If you do consult for a company, list that company on your resume just like with any other job. However, instead of “Marketing Director” say “Marketing Consultant”. Everyone will get that it was a planned temporary engagement designed to generate income and maintain a tight grip on the pulse of business during your transition.

3. As a follow-up to rule #1, what’s the risk of establishing a personal name to go with my consulting assignment? Well, if I am a hiring manager spending many hours interviewing you and considering making you a formal offer, I’m going to want to know that you are intending to be a permanent employee. By establishing what appears to be a consulting practice, you now have entered doubt into my mind. How do I know that you won’t jump at the chance for another engagement?

4. If someone asks you about consulting, the correct answer is that was a great experience, one that helped pay the bills. And a practice that you will gladly cease for the honor of a full-time position with this new company. Any hesitation here turns doubt into fear and you go into the “hold pile”.

5. Set limitations on the hours you dedicate to consulting. Twenty hours a week allows you twenty-thirty hours left in the week to look for a job. Also, make sure the consulting hours are as much on your schedule as possible. What if a great interview opportunity comes up? ”Sorry, future perfect new boss, I’m consulting that day” may not be the message to send.

The Final VERDICT

So, should you do it?

Absolutely.

In an extended search it can mean staying busy vs. feeling slow. Making money vs. spending savings. Being useful vs. Feeling unwanted.

Do it. But do it right. And make sure everyone you interview with knows your final objective.

Permanent employment. With them.

Comments

Charles April 2, 2009 @ 6:46 am

nicely written, good points, easy to read.
Tim Tyrell-Smith April 2, 2009 @ 8:03 am

Thanks Charles. Glad it helped you!
Barbara Michalski April 3, 2009 @ 9:04 am

Beware of static due to consultng. Because most contracts are short term 3 months in and out, you are suddenly asked (even when approach with a contract!) how come your contracts were so short? Go figure because I have not figured it out. I contract as you say to pay the bills and stay in an active working mode. I have received a lot of negative reaction to the number of contracts I have worked even thought I stress I prefer permanent employment and am frustrated by contracting. Good Luck, Barbara Michalski, Member of Linkedin.com
Tim Tyrell-Smith April 3, 2009 @ 5:22 pm

Hi Barbara. Yes, you have to be careful with the possibility that employers will perceive your interest in consulting is stronger than your interest in regular employment. In the end, I think consulting or perhaps better “contract employee”) sends a good message (busy during search) as long as it does not look like you are “becoming a consultant”.
Sean Williams April 6, 2009 @ 4:46 am

Tim – This is definitely food for thought. I’ve wanted to start my own consulting company for several years, including having written up a business plan during my last layoff almost 4 years ago. Working in IT, I know several of my coworkers have done so. I’m not looking to jump ship, but rather increase my skillset, prove I am management material by showing I can manage projects, and as an added bonus, I have a “fallback” should I be laid off again. I just haven’t moved on it yet due to other priorities, such as my young clildren, and working on my MBA at the time (now completed with the latter). This does give me some thoughts on how to answer any questions during interviews, should I be forced to leave my current position and enter the job market search once again.
Thank you!
Tim Tyrell-Smith April 6, 2009 @ 6:41 am

Hi Sean -
IT is a great place to consult – especially if you are a good problem solver and have strong knowledge of how to bring efficient tools to business. Do it right and it can bring in that extra income without harming your job prospects . . . Thanks for your thoughts here.
susan kennedy April 7, 2009 @ 3:43 pm

if you are in the middle of a consulting gig and you get a job offer, the new employer will wait while you wrap things up. They will also respect the fact that you will not leave them in the lurch in the future.
Tim Tyrell-Smith April 7, 2009 @ 9:48 pm

Good points, Jennifer. Well said.
mark loscudo April 13, 2009 @ 12:26 pm

Tim,
The comments you make are quite valid. Doing consulting or contract work during transition can keep you sharp and on top of new developments in your field of expertise. In some cases consulting gigs can exspose one to new industries opening up new and unrealized opportunities for full time employment.
Mark
Tim Tyrell-Smith April 13, 2009 @ 9:00 pm

Hi Mark – Thanks for your note. Absolutely agree with your thoughts.
Mary Grimes July 10, 2009 @ 9:49 am

I have decided to sign an agreement with a company that does travel loyalty and rewards programs as an independent contractor. It is a commission only agreement and I am not an employee of the company. I also am hoping to get into corporate travel consulting as well. If I do not start my own consulting company what is your suggestion as to a business card designation? Independent consultant? Should I put in the logo for the loyalty program? As I am new to this I would appreciate any advice.
Mary
Tim Tyrell-Smith July 11, 2009 @ 10:59 pm

Hi Mary -
Based on what you’ve said, I would use a term that is consistent with the role or function in which you are consulting. For example, if you are providing marketing services, use “marketing consultant”. If these are business cards for use as part of your work with the company, then yes use the logo. If they are to gain additional assignments with other companies, I would not. If the cards are for networking into a permanent job, then I would not use the logo and would look for a decriptor or positioning statement that defines you uniquely (e.g. Marketing and Branding Expert”).
Hope that helps!
ISO 5i5ty July 23, 2009 @ 6:24 am

Hi Tim! I am running out of savings so I’ve decided to start my own company (solo) – (in my industry) while I still look – will that hender my search for full-time work?
Tim Tyrell-Smith July 23, 2009 @ 8:18 pm

ISO – Based on what you’ve shared, consulting will not hurt you, no. However, how you show this time on your resume is important. Starting a company suggests a longer term commitment to consulting vs. something you did to make money and stay busy during your search. Unless you think you want to be a consultant long term, I would include Consultant on your resume and list the companies you worked for vs. saying ISO Consulting Inc.
Kirk August 21, 2009 @ 5:13 pm

Tim, I was on the fast track early in my career, rising to the VP level of a major company in my 20′s. But I found my lack of diverse knowledge impeding my effectiveness. So I went out into management consulting (not contracting; doing projects, but advisory services to top executives at major companies). After more than a decade of this, I now feel I have the rounded knowledge to be highly effective in returning to a full time corporate role.
However, I am running into major obstacles in this. No matter how persuasive my argument, companies still have trouble conceptualizing my leaving the “glamour” of consulting. How could someone leave the 8-10 hours a week in airports/airplanes, sleeping in unfamiliar hotels, and eating out alone, to return to a “boring” corporate position with stability, responsibility, ownership, camaraderie, and the chance to go home at night?
Suggestions? A couple years of attempting to get back out of consulting is getting old fast.
Tim Tyrell-Smith August 23, 2009 @ 8:17 am

Hey Kirk -
I think the fear for a hiring manager includes a few key aspects. One, of course, is that you will get bored and leave after 6 months. Two is that other employees will perceive you as special, different and not one of them. Third is that you will struggle taking direction from others and living successfully within a corporate culture (the need to influence and be influenced by others, working within what can feel like a stifling process of red tape to get the OK to move ahead).
If you are truly ready for this shift back to a corporate role, here are a few suggestions:
1. Ask former clients (ones you are close with) to evaluate you as if they were considering hiring you. Perhaps there are some objections or concerns that you have not thought of yet. They might be able to provide you with certain aspects of your background or skill set to emphasize. Ask them to be brutally honest with you. I would try to talk with 3 former clients to get a balanced perspective.
2. I’m assuming you already have gone back to the executives you worked for and inquired about roles there. If you have not, this is important. Not only this, but asking for referrals to other companies. Networking will be key for you as some who don’t know you will carry perceptions that may prevent an interview from happening.
3. Emphasize your accomplishments. Especially any that involved implementation and working closely with multiple departments. This emphasizes that you have skill and experience in getting things done and doing so by tapping the strengths of others.
If you have largely been a “lone wolf” operator, emphasize your successes. Highlight the insights and new strategies you’ve identified to help companies grow, increase EBITDA or improve operational efficiencies (whatever it is that you do). Especially if you get in front of a division head or CEO, prove to them that any risk (see “fear” aspects above) is well mitigated by the significant impact you can have on the company. Who isn’t looking for some fresh ideas right now?
4. Consider contract work. And once you have been in there for a few months, begin a conversation about carving out a permanent role. This way they have seen your work, see how you work with others and can begin to envision a longer term role for you.
5. My sense is that you will either land a role in someone’s strategy department, find a company that needs new direction for a division (hire you as division head) or you will need to start back at a lower level (less likely, but possible – especially if the company is in a different industry).
I hope a few of these thoughts can be of help. This is the best I can do without knowing your situation more completely!
Good luck to you . . .
Tim
Mirna January 8, 2010 @ 8:13 am

These are very good tips, but I’m currently confused on what I should do. I was currently laid of and have considered starting up my own company providing the same service I did for my former employer but instead approaching several companies and offering them all this service for a fee. Here’s the catch I was just recently offered a position with a former co-worker who has started up his own company and offered to be his right hand person, thing is I don’t want to get caught up in the situation of being laid off in the future and my passion is to have my own company so I can expand my horizon. What do you reccomend?
Tim Tyrell-Smith January 8, 2010 @ 9:44 pm

Hi Mirna – The reality is that starting your own company takes time. And unless you have funding that allows you not to work, it is best to work a day job while you develop your own idea. There is always risk of a layoff – in any company – that should not deter you from working full time while you plan your new venture.
In fact, working for your former co-worker may actually be a great way to experience a start-up environment and learn lessons about how to do it successfully without putting up all the capital!
So, I would work the dual path: work a full time job while you develop your passion. Good luck!
Where Do You Go After CEO? May 20, 2010 @ 7:17 am

[...] So what happens? You get stuck in this cycle of waiting for the right job. At the right level. And doing a lot of consulting. And there are pros and cons of consulting. [...]
Where Do You Go After CEO? « ANDYWERGEDAL May 21, 2010 @ 11:44 am

[...] So what happens? You get stuck in this cycle of waiting for the right job. At the right level. And doing a lot of consulting. And there are pros and cons of consulting. [...]
Daniel Rose August 26, 2010 @ 8:27 pm

Nice article!
It’s interesting to consider that employers worry so much about what people were or have done in the past. Often much less thought is placed on the future…
Daniel Rose´s last blog ..What’s your “orbital velocity”
Tim Tyrell-Smith August 26, 2010 @ 9:53 pm

Thanks Daniel – Yes, employers are looking to reduce their risk. That’s why “the past” stays so important to the hiring company. I agree that anything a candidate can do to get the focus on the future is a positive.

The Pros And Cons Of Consulting During Job Search

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