Asian and Asian American professionals work as independent contractors
By Ron Chepesiuk
Most workers expect a regular paycheck and the health insurance benefits a nine-to-five job provides. But times are changing. A growing breed of young, highly skilled workers, many of whom are in the high-tech field, are opting for freelance, independent contracting careers. For these trailblazers, climbing up the corporate ladder isn’t part of the plan.
Take Zhou Joe Yin and Jing Wang, a married couple from Beijing, China. Zhou came to study in the United States in 1996, and after earning a MBA from Butler University and a master’s degree in Information Systems Management from Seattle Pacific University, he decided to stay. Zhou got a job with Van Waters and Rogers Inc. in Seattle as a systems manager, but since then, he has signed on as an independent contractor with the Redmond, Wash.-based Comforce Information Technologies, an employment agency that supplies high-tech professionals to companies worldwide. As a freelancer, Zhou controls the sale of his skills and services that he contracts out.
“I enjoy freelancing because I’m not interested in a long-term commitment to a company at this time,” explained the 29-year-old IT (information technology) professional. “By changing jobs, I’m able to get exposed to may different computer systems and gain experience, while making more money than I would in a permanent position.”
Zhou’s wife, Jing Wang, came to the United States as a student in 1998. Last December, Jing earned a master’s degree from the City University in Renton, Wash., while working at Van Waters and Rogers Inc. About a year ago, Comforce helped Jing get a job with Microsoft as a program manager.
“Using an agency like Comforce to find a job is a lot easier than trying to find one myself,” Jing said. “There’s a shortage of IT workers in the United States, so I can always get a job freelancing.”
Zhou and Jang are two of the estimated 25 million U.S. workers who are regularly employed as independent contractors. However, this freelancing trend isn’t just limited to the high-tech field. Independent contractors can be found in a wide range of occupations, including sales, management consulting, real estate and advertising.
“Independent contracting works well in industries such as advertising that are multifaceted and project oriented,” said Jane Garaghty, a New York City-based executive with White Door, a global recruiting agency that provides freelance talent for the advertising and communications industries.
The End of the Ride
Chinese American Eddie Shieh is a 31-year-old New York City-based advertising writer, who has been working intermittently as a freelancer during the past 10 years. Shieh’s parents wanted him to be a doctor, but he was a creative child. It took his parents a long time to accept their son’s choice of careers.
“That didn’t happen until they saw the first creative ad I ever did — a Heineken commercial — when I was working my first job at BBDO, one of New York’s oldest ad agencies,” Shieh said.
Ten years later, after beginning his career with BBDO, the ad writer is back with the company, helping to create an online advertising presence for startup companies. Though he’s not having trouble finding work, he said others aren’t so lucky.
“The economy has not been kind to freelancing,” Shieh said. “I know a lot of colleagues who are getting stressed out, trying to figure out where they will get their next gig. Jobs are scarce, and interactive agencies are cutting back on their staff.”
He added: “A couple of years ago, beginning with IBM, a lot of major companies started to concentrate their work in one ad agency because it was cheaper to do and easiest to deal with. That’s why a lot of freelance work has dried up, and the opportunities seem to be getting fewer and fewer.”
Äe’s not alone in his opinion. James Cheung, a 35-year-old advertising writer in New York City, said because of the recent economic slowdown, very few freelancers in advertising are making money.
Cheung has been freelancing since last September and has done it three or four times in the past 10 years. He said there are both pros and cons in being an independent contractor.
“An ad writer working in a regular job is usually responsible for one account, which he might handle for two or three years,” he explained. “That’s all he’s responsible for, so the job can lose some of its challenge because you keep working on the same thing month after month.
“On the other hand, in bouncing around as a freelancer, an ad writer can have a difficult time establishing a name in the industry,” he added. “You can do that, though, by working on one account.”
Harrison Liu, a 37-year-old software developer for Boeing Corporation, has been using Comforce’s services since 1997. A native of Beijing, China, Liu came to study in the United States in 1990 and earned a master’s degrees in physics and computer science. In 1993, he got his green card as a result of the U.S. government’s response to the 1988 Tiananmen Square incident.
“Citizens of China who had come to the United States before Tiananmen and were living in the United States at the time were given their green card,” Liu explained. “I have found that I can make more money as a freelancer.”
At Boeing, Liu is part of a team of developers working on a project designed to provide Internet access on airplanes. The work has been steady, but like others, he doesn’t believe the good times will last forever. “You are the first to be let go when hard economic times come,” he said. “Although I don’t see signs of that happening yet here at Boeing, I’m worried about the economy.”
Getting Their Worth
Nevertheless, Comforce’s business, where both Zhou and Jing got their jobs, is booming, and demand for IT workers remains strong. Comforce has branch offices worldwide. In its Redmond, Wash., office alone, the company has 18 recruiters and over 11,000 workers under contract.
Asians are playing an important role in filling the need for IT professionals. According to company officials, American companies are eager to hire workers from Asia, especially those from India and China, where people get good training in the field.
A recent study by the Washington, D.C.-based Employment Policy Foundation (EPF) put the annual salary of high-tech independent contractors at just over $51,000 annually, not significantly different from what high-tech professionals holding traditional jobs in the industry are earning.
Other studies indicate freelancers are actually coming out ahead. A survey by Contract Professional magazine found that independent contractors are earning more than permanent workers. According to the survey, independent contract rates paid by Fortune 500 companies averaged $41.51 an hour (equivalent to some $82K annually). In contrast, the average salary they paid to permanent workers was $59,000. Meanwhile, small companies paid $34.71 an hour (equivalent to some $68K per year); permanent workers earned an average salary of $53,000.
Although the financial advantages of freelancing can be significant, there are also “hidden” expenses. Independent contractors may have to pay for their own equipment and supplies. And if they don’t work for a temp agency that handles benefits, they must@foot the bill for health insurance and retirement investments.
The EPF study found that the independent contractor industry is “well prepared for both health and retirement security.” Most high-tech independent contractors or agency temps have health insurance (83.2 percent) and pension plans (64.4 percent).
It’s clear that a lot of misconceptions surround the independent contract sector, but one thing is certain: it can offer viable employment opportunities for the right kind of Asian and Asian American professional. Some thoroughly enjoy the work style, while others prefer to combine it with traditional job opportunities.
As the EPF study concluded: “Independent contractors are neither permanently stuck in their position, nor are they at a disadvantage in terms of salary, benefits and the type of employment they prefer, and are happy with that decision.”
Business reporter Ron Chepesiuk is a Rock Hill, SC-based journalist. He can be reached at 100423.2656@compuserve.com. |
