| Making the Most of Your Contractors
By John Folkestad and Amy Langer
Temporary employment has increased by 50 percent over the past 10 years, and the growth shows no signs of letting up. As we told readers of the Star Tribune back in April, "Contract employment is good for both companies and consultants…."
Employers need "just in time staffing" to handle temporary work crunches, or to tackle projects they can't get done with in-house talent. Associates are looking for the challenges and flexibility that contract work provides.
Defining the Difference
Companies who hire contractors are required to make a distinction between them and full-time employees. The IRS says so. But, that's not the only reason–or even the primary reason–for your organization to define the difference between contractors and employees.
The IRS rules seem to be based on a notion that contractors would really rather be employees, and that companies hire contractors to avoid paying health care benefits, profit-sharing, and other costs.
That's simply not our experience. Time after time, our consultants tell us that they view consulting as a fulfilling, long-term career option.
They welcome the challenge of a brand-new assignment every few months. They enjoy experiencing a wide range of industries and corporate cultures. Our clients likewise have particular reasons for filling a role with a contractor rather than hiring a permanent employee.
Because the contractor and the full-time employee have different needs, expectations and strengths, understanding the differences can help to maximize the effectiveness of both.
Building a Team
While contractors don't want to be employees, they do want to be team members. While it's often not appropriate for contractors to attend corporate outings and events, it's vital for them to have opportunities to get to know the roles, personalities and working styles of the people with whom they'll be interacting.
By looking for ways to include consultants in occasional team-building meetings and activities, managers can help them be more productive.
Making the Match
Finance and accounting specialists are good at "working with numbers." But, really, success always depends on "working with people." That's why it's so important to match personality as well as skill set when we recommend a consultant to a client organization.
The more information a client provides about the culture of their company and the dynamics of the project or role they're looking to fill, the easier it is to assist them in finding the right consultant.
Finding New Challenges
One thing that distinguishes a consultant from a full-time employee is the need for change. Associates crave the challenge of a new project and the opportunity to grow in a new role.
When consultants are a particularly good fit in a client company, managers may be reluctant to lose their knowledge and abilities. As one project or task draws to a close, it's often possible to move the familiar consultant into a new role.
Building a Relationship
Excuse the tiniest bit of bias when we say the best way for companies to deal with all of these issues is to work with SALO.
We'll help you to find a consultant whose skills and personality will be the best fit. Then we'll be available for the duration of the engagement to answer questions and provide direction. As the contract draws to a close, we can help you to define a new role if you choose.
By building relationships, SALO helps our clients build their businesses, and our consultants build satisfying careers.
At SALO, we believe contract employment is good–and we're continually looking for ways to make it better. For a candidate's perspective, see Dan Rutman's funny and thought-provoking essay.
To learn more about the IRS' definitions of independent contractor vs. employee, read this article.
If you're interested in reading the entirety of our Star Tribune article, click here.
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