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.
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.
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,’ ” he 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.
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:
1. 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.
2. 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.
3. 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.
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.
