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Professional contractors and fixed term employees are a key component of an organisation’s workforce, but with HR mainly focused on permanent staff’s development and management, this group can be overlooked.  To counteract this, Crackerjacks have developed the following tips for managing contractors and fixed term employees, to ensure top performance from your contingent workforce.

Setting expectations for contractors

Be clear in your own mind about the scope of the contract. Be explicit in explaining the specific tasks that will be involved and the expected project outcomes to the contractor. It’s important to have clear parameters to ensure the contractor doesn’t become too involved in the organisation; for example, having a contractor deliver a lot of operational tasks can end up being expensive.

Keep a tight and controlled relationship to ensure the expectations of the role and/or project are shared by you and the contractor, and that the contractor delivers. Contractor rates are often at a premium; aim to get the highest performance from them.

Ensure you include information on:

• What is to be delivered and when this should be completed
• Milestones you want achieved and reported on and how often
• Who owns the work that the contractor produces
• Any provision of materials, equipment, data or premises
• Confidentiality – an agreement providing that during the contract term and after the contractor will not disclose information relating to your business
• Terms of payment – is payment on invoice? At what intervals? What information is needed?
• Termination arrangement to clarify how the contract will be terminated, by whom, and for what reasons
• Exclusivity – can the contractor work for anyone else during this contract?
• Standards of work and behaviour

Ensuring a smooth arrangement

Have a brief and keep it simple; a contractor needs some guidelines on inputs and outputs.  If it is a permanent position they are backfilling, then the existing position description may suffice.  However special projects may need a list of objectives and requirements.  After a week, it’s a good idea to follow up with your contractor to ensure you’re both on the same page.

Establish a time period for the work where the contractor has the right of renewal after this date. While most want ongoing work and will be keen to say “yes” to another three months, there are other opportunities in the market, so if it hasn’t been an enjoyable assignment for them, you may be faced with having to find a replacement to finish the project.  It’s best to decide on a comfortable timeframe from the outset and keep talking to your contractor on the possible tenure, thus developing a rapport.  Confidentiality and liabilities must be considered. The contract between your organisation and the contractor should have these risks covered and in a legally binding way.

Measuring a contractor’s performance

Give the contractor specific objectives relating to what they need to deliver. It’s important to keep track of project milestones and hold the contractor accountable to meeting these, so emphasise the importance of the bigger tasks and ensure they report back regularly on milestones.

Spotting a good contractor

Loyalty is a common issue for employers of contractors. Will the contractor care enough about the job?  Will they drive the project hard enough?  Will they see the job through?  Remember that although contractors are “all care and no long-term responsibility” – that’s what they’re paid to do.  However, a true professional’s reputation is as good as their last assignment so they will always produce their best results.  Similarly, you must provide loyalty to the contractor in terms of resources, commitment, backing and mandates to fulfil your part of the bargain.

Good contractors need to be experienced enough for the role, happy with ambiguity and have the ability to communicate with a wide variety of clients. You don’t need to look at a contractor’s career progression goals, instead take more of a short-term view.  They need the necessary skills at the time of the project, unlike a permanent employee who has time to develop into the role.

Ensuring good results

Communication is the key. It’s a good idea to sit down regularly and have a ‘no-consequences’ discussion on the job.  As the employer you are responsible for managing outputs, so invest as much as you need in order to get the right result. It also helps to blend the contractor into your team to make them feel included.  Ensure the role and requirements are well-defined in your mind beforehand, and try to keep the focus on a specific project or role. Set clear objectives with associated timeframes.

It is also important to establish clear and simple reporting guidelines to measure the effectiveness of the contract to date and to clarify outstanding requirements.
As the contract’s end approaches, set up a process to debrief the contractor and ensure knowledge is maintained by the organisation.

When the contractor reports back on milestones achieved, it’s important to provide them with feedback and direction on their work, especially in a changing environment. And when the contract ends, make sure you provide feedback to help them along with their professional development as well. Let them know what you thought of how they went about their work, what you felt was good, and what could be improved. Be diplomatic though – constructive criticism works better than just criticism.