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Maximum Work Flow, Minimum Head Count
By Marie C. Baca
B-Net
August 17, 2009
By any chance, has your organization asked you to do more work with less head count? Funny: Ours has, too. If you haven´t already found yourself turning to independent contractors for increasingly
mission-critical tasks, don´t worry. You will.
The reasons are simple: Freelancers cost less (no benefits, and you can hire them and let them go with
the ebb and flow of the work), and there are plenty of contractors with industry–specific experience on
the market these days. But working with contractors has its challenges, as anyone who has done it can
attest. It´s a delicate process: You need to assess areas where outsourcing makes sense, negotiate solid
agreements with contractors, and incorporate the contingent workforce into the day–to–day operations
of your business—all while preserving you company´s culture.
It´s well worth the effort.
Things you will need:
- $5,000 to $$25,000 and up a month, depending on the consultant and the nature of the job.
- Budget anywhere from a week to a couple of months to find someone and negotiate a contract, a few hours
to kick off the project, and an hour a week to check on progress.
- A Legal Eagle: Using a lawyer for the contract can save a lot of time, headaches, and money down the
road.
- A Clear Focus: Write out as much as possible and make yourself available to answer questions.
- Patience: All organizations have unique cultures and specific needs, so be willing to familiarize your
contractor with those of your business.
Step 1: Define the Skill Set
GOAL: ESTABLISH PARAMETERS AND CREATE A PROFILE OF YOUR
IDEAL CANDIDATE.
Finding the right independent contractor begins with a candid assessment of your
needs, resources, and required expertise. Don´t just do a Google search. In fact, Valerie
Frederickson, who runs her own human capital management firm, cautions that if you give this
part of the process short shrift you could end up having to hire a second person to mop up the
mess and finish your project.
It’s important to think about the types of people who have worked out best in your
organization, and to be aware of anything that might lead to a problem. “An ex-executive may
have a lot of great experience, but if he hasn’t reported to a management team for several
years, he might not be a great fit,” warns Janice DiPietro, a managing partner at executive
services firm Tatum.
Danger! Danger! Danger!
Confusing Long–Term Success with Short–Term Potential
It´s easy to assume that someone with a great long–term track record at one company
will automatically succeed under a shorter timeline. Not so, says DiPietro. Decades of
experience in a particular industry don´t mean that person will understand the demands
that come with a temporary position. For example, the former CFO you bring in to
review a potential acquisition may not brief the rest of the team on his accounting
methods, leaving the company in an awkward position when it opens the books to
potential investors. So look for people with both industry experience, and experience
as a contracting professional. When screening candidates, see if they are aware of the
distinctions. Even people who are just now making the switch from full–time roles to
contractual engagements should recognize that such projects require a different mix of
skills.
Step 2: Find a Rock Star
GOAL: IDENTIFY SOMEONE WITH THE SKILLS FOR SHORT–TERM
PROJECTS.
The Web is a great place to find part–time employees, but use it creatively when seeking a
skilled professional. The key is to think beyond Craigslist and CareerBuilder, which will lead to
a torrent of irrelevant applicants, especially in this economy.
Scour your personal network. Your BlackBerry is often the best resource for finding a
candidate or someone who can lead you to one. A former employee who left your company
on good terms may be ideal, especially since that person comes with an understanding of
the culture and personalities of managers. Also, seek out retired professionals. If they don´t
want the job, they´ll surely have extensive contacts. A note of caution: Beware of self–labeled
consultants. They have a tendency to exaggerate the relevancy of their skills.
Hit up professional associations. Professional and industry organizations are great for
finding people with specific skills, such as Web gurus, marketing consultants, and creative
directors. Remember, professional associations like to help. It validates their existence, and
that keeps members paying dues.
Consider a search firm. If you need someone fast — a temporary lawyer, for example, an
accountant, or even a top–level executive — a good search firm can cut your headhunting
time from two months to a week. But you should expect to pay anywhere from $300 to $2,000
to initiate the search and a success fee of $1,000 to $15,000, depending on the contractor´s
salary.
Big Idea
Delegate
Finding and training a contractor takes a lot of work, so make sure you have the time it
requires. Frederickson says managers often underestimate the necessary commitment,
and they end up with low–quality work and a high level of stress. Do yourself a favor and
delegate some of these steps to other employees.
Step 3: Let Them Loose
GOAL: INTEGRATE CONTRACTORS INTO YOUR ORGANIZATION
WITHOUT MAKING THEM VITAL.
Working a professional contractor into the mix is tricky: You don´t want someone to become so
critical to your business that it´s hard to cut him or her loose. Here´s how to strike the perfect
balance:
Talk to your regular staff. There´s nothing that says “welcome” like an employee calling
security after spotting a stranger (your contractor) wandering the hallways. Avoid awkward
situations by telling the staff that you´ve hired a temporary contractor. Explain why, and take
questions.
Supply necessary resources. That includes the obvious, such as relevant documents
and technology, but also be sure to introduce the person to employees that he or she
will be working with. This will allow the person to work efficiently and avoid unnecessary
communication gaps.
What Not To Do
Be Super Secretive
If you offer vague or misleading answers about why you´ve brought on a consultant, your
employees will assume the worst: that they´re getting squeezed out. The last thing you
need is a hostile relationship between your staffers and your contractor. If you´re bringing
in part–timers because of an increase in work, then your people should welcome them.
But you might also be looking for ways to run your company more efficiently by gradually
using fewer and fewer full–timers. In that case, Frederickson gives this advice: “Be honest,
but don´t say ‘This consultant is here because a lot of you suck,’ ” she says. “A better option is to say, ‘I´m concerned about how the group is performing, and this person is
here to help us implement a number of changes.’ ” Nothing you say will be perfect, but let
your regular employees know something about what´s going on.
Step 4: Check In
GOAL: EVALUATE PROGRESS USING MEASURABLE AND
REPORTABLE OBJECTIVES.
While it´s important to check on the project´s progress, micromanaging can strain the
relationship with your contractor. Realize that your contractor might have a different work style
than you´re accustomed to. His or her job is to deliver, not to blend in as a full–time employee.
So unless your contractor is disrupting your organization, you should focus only on what
he or she is producing. Establish clearly defined milestones from the get–go, which will help
everyone involved focus on results and not style.
Checklist
Three Ways to Measure Progress
Typically, people set milestones with a calendar: By May 31, for example, you will submit
the first 50 pages of the report. This approach, however, might not always make sense if,
say, you´re hiring someone to be on call for emergency workload surges. Here are three
other ways to make sure you´re getting your money´s worth from the contractor you´ve
hired:
- Account for the hours. Ask for weekly reports on the number of hours spent on the
task, with a brief description of what was accomplished.
- Show us the money. If you´ve brought someone in to figure out how to save money,
ask him to track the cost–saving measures along with the amount saved; require e–mail
updates tracking progress toward a predetermined dollar amount.
- Addressing those creative types. Creative professionals may work best when
evaluated on the work itself. Even so, ask such a contractor to submit portions along the
way, whether it´s marketing material or sections of a Web site in development.
Step 5: Say Goodbye...Or Not
GOAL: CUT THE CONTRACTOR LOOSE OR EVALUATE A LONG–TERM
RELATIONSHIP.
Even the most experienced professionals sometimes overstay their welcome by trying to
insert themselves into other projects. Such extended tenures can become more costly than
hiring a full–time employee. Stick to the original plan, and end the relationship once the goals
are met. Experts also recommend having a plan in place should the project drag on, such as
setting up other indicators—like money spent—that create a clear stopping point.
Of course, some people are worth working with again, or even bringing on full time or in
another capacity. So be sure to thoroughly evaluate your contractor´s performance and
effectiveness.
Hot Tip
Looking Forward
If your contractor added a lot of value, here are possibilities to consider:
Make him or her a board member. Often, that´s a great option for retired executives or
people with other obligations but a keen interest in your company. Board members are
generally paid a flat rate, say $20,000 a year, plus expenses tied to board duties.
Add an adviser. Making your contractor an adviser is a great way to keep ties with
someone you want to turn to for periodic help. That might be someone you use to help
with an acquisition, or someone whom you rely on for regular discussions about strategy.
Compensation can be a flat rate, equity, or a mix of cash and stock.
Ask them to invest. Many contractors have money. Retired managers, for instance,
often have the resources to invest but still work as consultants to stay involved in an
industry they enjoy. Plenty of private firms have option pools for investors.
Marie C. Baca is a journalist and editor whose work is primarily focused on technology, business, and medicine. As a freelancer, Marie writes regularly for BNET, The San Mateo Daily Journal, and Bay Area Parent Magazine, among other publications. She is an assistant online editor at NBC Bay Area, planning digital content for www.nbcbayarea.com and covering local news, technology, and health.
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