How To Sell Continuing Service As A Contractor

Hiring contractors can be an exciting prospect for whatsoever business. Information technology normally signifies growth and expansion, which is good news for owners and managers.

However, there are some pitfalls to be avoided, and you lot have to do your research. And then, let's take a quick look at some of the nuts: definitions, pros, cons, tips, pitfalls, sourcing, and handling.

Definition

A contractor is a business concern unto themselves – a supplier.  They differ from an employee, and getting this wrong can be very costly. And so before you hire, head to the ATO's online 'Employee or Contractor' tool.

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Pros

A contractor is selling you a result or set service, and that's what you're paying for – a limited article, both in time and scope. This tin can be reassuring for a business organization, particularly in a menstruation of early or temporary expansion.

Some other great aspect of this arrangement is that within the bounds of the contractual agreement it tin be more hands ceased or contradistinct than an employee agreement, allowing greater flexibility and reduced risk (i.e. it'due south not working out, have a look at the contract).

Many people who contract out do so because they want more than flexibility and more ability over when and where they piece of work.

A great example of this is total-time parents. They collectively incorporate some amazing skills that lay largely idle due to the mandatory flexibility they demand to support family and work. They are keen, capable, experienced and the market place is awash, so yous get your choice!

Cons

A contractor is an independent business. The contractor has a contractual agreement with you at an agreed remuneration for an agreed amount of work. This ways a contractor is well within his or her rights to reject additional work or charge you additional fees for that work. In this regard a contractor is much less flexible than an employee.

Because they are contractors they may dictate how they attain the outcome or service they are delivering, which may not exist the method that you first envisioned. Because they are contractors they may dictate how they achieve the consequence or service they are delivering. This may non be the method that you lot first envisioned. That's not to say that you have no choice, just y'all need to think carefully when faced with this situation nearly whether their method will change or devalue the consequence. If this is the instance then they may not be achieving the desired result, again depending on how the contract is structured.

Tips/pitfalls

Y'all need to be conscientious not to 'use' a contractor. What does this mean? Well if you engage in a contract that mimics an employee-employer understanding and then it may exist construed as such by a courtroom of police or ombudsman. This is designed to terminate employers from using contractors as a method of hiring employees commitment free.

It's important to ensure that y'all are very clear virtually your expectations and that this is articulated correctly in whatever contract, so that in the event of a disagreement a give-and-take tin occur around the facts of the agreement and not devolve into a he said/she said argument.

Proceed in mind you're paying for a result. Don't necessarily hire the keenest or cheapest contractor. The more thoughtful and/or reluctant contractor may have a better understanding of the situation. Therefore, have a college probability of success at the desired qualitative level, simply also may accept a higher attached price.

If a contractor chooses to sub-contract out some or all of their work they are absolutely responsible for the output of that work and at no time should you lot deal with the sub-contractor. If there is an issue with work and so yous need to treat the situation every bit if the work came straight from the contractor. If the sub-contractor is working 'on-site' y'all however need to provide the same safety working surround for the sub-contractor as y'all practice all employees and contractors.

Once the contract is complete re-assess your options, it could exist worth continuing the human relationship, or even putting them on as full-time/part-time staff.

Sourcing contractors

Sourcing contractors is similar to finding employees. Some skillful avenues:

• Freelancer – This is a not bad site and it's Australian. It allows you to appoint professionals for a range of tasks on a temporary basis. A good selection for short term one-offs. Similar sites include elancer.com.
• Seek – Advertising on this site is a good manner to get the maximum exposure on the contract very rapidly, of course it will attract the usual spam.
• Twitter/bloggers – Many bloggers and social media gurus do contract work on the side. Pairing the right kind of work with the right kind of call to activeness tin can attract some of the latest thinking to your chore.

Your own networks – don't forget to leverage these contacts. They can lead to the well-nigh trusted contractors and they may have better familiarity with your visitor and how information technology works.

Handling of contractors

Contractors aren't immune to poor treatment and they are almost e'er re-hired, if such work re-surfaces. A poor experience can mean that they don't return or they may add together a premium to their next contract. Contractors that have positive working relationships with their clients will become the extra mile whilst on the job and they'll be keen to return for the side by side round of work. If a disagreement does popular up then a contractor with a positive human relationship with their client is more probable to hold to an amicable comprise.

Have a systematic approach

Hiring a contractor is a multi-faceted exercise, merely like hiring an employee. Information technology has advantages, peculiarly if the work is of a finite nature. However, it tin can accept its own unique problems that demand to exist addressed.

Take a systematic approach, don't be deterred if you hitting some speed bumps, do your research and, as with all business, develop a positive relationship.

David Simpson is the managing managing director and founder of Melbourne HR which provides HR/IR services to the SME market.

Source: https://www.smartcompany.com.au/people-human-resources/recruitment-hiring/hiring-contractors-how-to-get-right/

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