Contracting in the Learning Space

Over the last year I have seen more and more companies looking to bring on eLearning consultants instead of hiring full time employees.  Many learning professionals may consider this a blessing after the work doldrums of ’09, but before you jump into the ocean of contracting, you should make sure you understand some of the advantages and pitfalls of Contracting in the Learning Space.

Given the difficulty of finding new business for many contractors, it is common for contractors to find work through recruiters.   Before you sign a contract with a recruiter, there are a number of advantages and disadvantages that you should be aware of.

1. As a consultant, you need to know the vast majority of recruiters are not knowledgeable about eLearning or the training industry.  When you respond to a post on Dice, the recruiter is unlikely to know anything beyond what is in the post.  This means that you will not have a solid understanding of the work needed until you talk with the end client.  Unfortunately, the recruiter will require an hourly rate you are willing to work for, so you will need to have a number you are comfortable with regardless of job requirements.  Also, keep in mind the recruiter is going to bill the client significantly (often 35% or greater) more than any rate you accept.
2.  Recruiters want to make sure the time they spend getting clients and contractors is worthwhile, so they will only take on certain types of projects.   Usually they will only take projects that are 8 hours a day with a minimum commitment of several months.  This means that clients often will only work with recruiters for a project they can keep you constantly working on, such as converting hundreds of courses to a new eLearning tool.  These types of projects often will not be as rewarding as projects or clients you develop yourself.
3. Most projects will require you to work on site.  Even with eLearning and distance learning solutions becoming more and more accepted, many companies do not feel comfortable with you creating these solutions remotely.  This means you will often only be able to accept contracts at location geographically near your location.
4. Recruiters usually respond to a client’s request to fill a specific position.  They do not propose solutions or teams to complete a project more efficiently.  If you are working on a project and see a potential side project, unless it is filled with another contractor, the recruiter is unlikely to pursue the possible project.  Fixed bid projects or more complex team solutions are unlikely to be pursued by the recruiter and you do not have the ability to pursue these projects on your own.
5. Once you have signed the contract, the recruiter owns the client relationship.  You will be locked into partnering with the recruiter for any work related to that client for, usually, a year after the end of your current contract.  If the project requirements change or the client wants you to work on other projects, they need to go through the recruiter to make these changes.  This can be cumbersome at times, especially if the recruiter is not versed in the learning space.
6. Not all recruiters are the same.  There are a number that focus on the learning space, some that perform more project based solutions, and a few smaller shops that may have greater flexibility.  Working with these types of recruiters will often be easier because they can better describe the position and understand the type of solutions that are possible.  They may also be more flexible on the terms of the contract or solution.

There are some alternatives to using recruiters to keep work coming, but they are probably not going to be as prolific as using the job boards (and recruiters).  Working in conjunction with other contractors/consultants or small consulting companies may give you flexibility that you are unlikely to get from a larger organizations.  You are likely to be able to get better contract terms and find more interesting projects.

As the learning market improves, contractors need to find effective ways to engage with recruiters, as well as other organizations, to keep working.  The best way to make sure that the experience is positive is to have a solid understanding of the process of working with recruiters.