Recent studies have shown that hiring contractors instead of full-time employees can save businesses thousands of dollars a year.
However, while hiring contract workers can save you a lot of money, it can also bring about some unique challenges. When you need to fill a gap in your business, you need to consider a few important things. Here are the top five things you need to think about to help you make the decision.
Understand the Scope of Work
Before hiring a contractor, ensure you’re clear on the scope of work so that both parties can be aligned. Think about the role you’re trying to fill and develop a comprehensive list of projects, tasks, timelines, and goals associated with the position.
This will help you determine if a contractor will suit the position or if you’re better off hiring someone full-time. It will also help you set the contractor’s expectations for the role and afford you the opportunity to keep track of these details within a contractor management system.
Evaluating Experience and Qualifications
Just because you’ve decided to hire a contractor instead of an employee doesn’t mean you don’t need to take a look at experience and qualifications before committing.
Verifying that someone is fit for your open role is an important part of the hiring process, no matter what route you take! Depending on the type of position, ask for a portfolio of past work, proof of certifications or qualifications, and contactable references to make sure they’re credible and reliable.
Setting a Budget
One of the challenges of working with a contractor instead of a full-time employee is determining a budget and pay structure. Some contract workers will bill you per hour; others might charge per project.
You’ll need to set a budget for what you can realistically afford to spend and ask for quotes so that you can compare and weigh up your options. Keep in mind that more experienced contractors and larger and more complex projects will likely cost you more.
Understand How the Contract Works
As an employer, you need to have a clear understanding of how a contract works between you and a contract worker. You’ll need to set up a binding document, just as you would with a permanent employee.
Your contract should stipulate the duration of the contract, the tasks, projects, and other responsibilities of the contractor, the agreed-upon remuneration, timelines, termination clauses, and even how you manage your employees.
Communicate Effectively
Finally, remember that communication is key in any working relationship. Make sure they’re clear on what is expected of them, and take the time to check in on a regular basis to assess their work and progress.
You should also use these check-ins as an opportunity to offer assistance to your contractor and find out if they’re handling the project as expected. If they have any questions or concerns, being able to talk through them will only benefit you and the work itself.
