The Consultant’s Paradox

Paradox:  noun

1. A statement or proposition that seems self-contradictory or absurd but in reality expresses a possible truth.

2. A self-contradictory and false proposition.

3. Any person, thing, or situation exhibiting an apparently contradictory nature.

4. An opinion or statement contrary to commonly accepted opinion.

I am well into a Controller search for a global manufacturing company based here in the northern suburbs of Atlanta.  The client has identified two lead candidates and I have three back-up candidates in the queue for insurance.  One of my backup candidates is particularly interesting as he has been doing consulting/project work for the past eight years.  He is interesting because his consulting experience has largely been with manufacturers, making him a viable candidate.

Early in my career it was not uncommon for the unemployed to present their time between jobs as "Consultant" whether they had actual clients or not.  At that time "Consultant" became a euphemism for unemployment.  There was a greater stigma attached to unemployment in those days.   The realities of the past 30 years have helped people understand that competent people can be displaced through no fault of their own.  Industry restructuring leading to mergers and acquisitions and subsequent right-sizing, and down-sizing has affected most us, one or more times.  In all of this turmoil, the decision to terminate particular Executives is more like Survivor Island than we would like to admit.  The individual decisions are often more politically driven than for competence and potential.   Thankfully, opinions have changed about people taking on consulting/project assignments while unemployed.  There are of course other biases against consultants, even those from established consulting companies. 

We live in a different world today.   There is still a lot of work to be done, but companies are reluctant to add to staff.    In this environment out-sourcing is a very desirable alternative.  It is easier to terminate a contract than to fire a difficult employee.  Given this reality, I have long advised my candidates to consider freelancing.  It is a good way to maintain one's cash flow needs and a viable job-search strategy.  The activities one must engage in to find a consulting assignment are no different than those required to find a job.  The effort is complimentary.  From the employer’s perspective the “Temp to Perm” analogy comes to mind.   In the example of the candidate, mentioned earlier in this post, freelance work gave him the opportunity to gain new experiences, strengthening his resume, making him a more viable candidate.   There is a balancing act one must consider.  The longer one is employed as a freelancer the more difficult it becomes to find full-time employment.  It seems that the inflection point is in the two to three year range.   By this time one must decide which path to pursue or the consultant path may be chosen for you, like it or not.

As with any bias or prejudice, the employer’s predisposition toward consultants is due to a lack of understanding about the challenges faced by the freelancer.  The freelancer is a self-employed, small business owner.  Fundamentally, they must be competent and able to work with people to complete an engagement and generate referrals for new business.  More importantly, however, the freelancer must be good at business development to land their assignments.  They must be successful networkers and good sales people, skills that are valued in any successful organization.  They must be good financial managers as well.  These traits may not be well understood by most employers.

In conclusion, businesses need freelancers to help them achieve their goals while minimizing their labor exposure.  Displaced professionals are available to do freelance work while looking for full-time employment.  The paradox is that after a certain period of time a freelancer may become unemployable and type-cast as a consultant.  Understand the trade-offs and plan accordingly.