Becoming Your Own Corporation — Boon or Bust?

by Peter Zvalo

Financial experts today are advising workers to make a paradigm shift in how they view their place in the economy of the 21st century. They are being advised to stop thinking in terms of building a life-long career with one employer, but instead to view themselves as a one-person corporation offering specialized services to whomever is willing to pay the highest price. This advice is being heeded by a growing number of people, particularly by those who possess knowledge and skills that are in high demand but in limited supply. No where is this more prevalent than in the high technology sector, where companies are compelled to offer ever more generous pay and benefits to those who possess the best and brightest minds of the information age. In some cases, companies are engaging in bidding wars to attract talented individuals, and then continually sweetening the pot in an effort to retain them.

The spill over of the new order in the world of business is being felt by professional communicators, particularly technical writers and editors. Writers and editors with demonstrated experience and a good track record are being snapped up in increasing numbers by rapidly expanding technology firms. While the salaries of technical writers have not undergone the kind of increases enjoyed by computer programmers and engineers, increases have nevertheless been steady over the past several years. According to the Society for Technical Communication (STC), a North America-wide organization dedicated to advancing the arts and sciences of technical communication, the median salary for technical writers/editors of STC members in Canada increased from $40,000 in 1990 to $47,700 in 1999 (in the United States, salaries increased from U.S.$35,000 in 1990 to U.S.$47,560 in 1999).

Despite the favourable job prospects for professionals such as technical writers, many are opting to go it alone by becoming independent contractors. Some are attracted to contracting by the prospect of being in greater control over the type of work they do and in having the freedom to work as many or as few hours as they choose. For others, the opportunity to do some or even all of their work from a home office, eliminating the daily commute and the expense of child care, is attractive. But the biggest draw for many who choose this alternative is the potential income: experienced technical writers can command over $60 per hour.

Not everyone, however, is well suited to the life of a contractor. According to Bakr Ibrahim, a professor of management at Concordia University in Montreal, Quebec, people who choose to become their own corporation need to have certain personality traits in order to be successful. These traits include being comfortable with a lack of security and high risk, a tolerance for ambiguity, a high need for achievement, love of working long hours, independence, and the desire to be in control. Most independent technical writers are individuals who have worked for someone else but who won’t or can’t stay in a job for long because they have their own ideas and want to do things their way.

In the end, contracting is little more than capitalism in its purest form. Individuals with the entrepreneurial know-how to attract desirable clients, the technical and creative skills needed to produce a good product, combined with a little luck, can enjoy a lifestyle that would be the envy of those not similarly blessed. And while the rewards may be generous, there is no safety net: no paid sick days or minimum vacation time, no dental or health care plans, and no regulations restricting the number of working hours or working conditions. Certainly, there are no guarantees of a minimum salary or of the availability of work. The success or failure of a contractor is based not only on individual effort, but also on the market forces of supply and demand.

The "one-person corporation" mindset is likely here to stay for some time. People who have grown up in a time of economic insecurity, as was the case during the 1980s and early 1990s, understand that employment is no longer a lifetime promise. Consequently, we can expect workers — or at least workers who hold the right cards — to embrace work from the perspective of the capitalist rather than the traditional wage earner. Whether contractors or full-time employees come out ahead remains to be seen.

Peter Zvalo is a Contributing Editor for Writer’s Block.

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