The Rise and Rise of Contractors… and How to Get the Best out of YoursAs the UK continues to recover, the use of contract resource is becoming the norm across all sizes of companies and most industries. The trend is definitely upwards and - against this backdrop - it is crucial to understand how to recruit, manage and retain your contractors. Neil Goudge, an independent specialist in project, programme and change management, offers a valuable guide to making sure contractors are working in your favour.

18 MAY 2014 | www.pmtoday.co.uk

www.pmtoday.co.uk | MAY 2014 19

The latest figures from the Recruitment and Employment Confederation (REC) show that nearly half of clients who use contractors predict they will increase their usage of contractors in the next four to twelve months. In the last three months alone, there more than 5,000 project manager positions were advertised at an average rate of £425/day (ITJobsWatch.co.uk – 28th March 2014). It’s a career choice for many, whilst some just slip into it and never go back to a permanent job.

Getting the most out of your contract resource is a bit like managing a project. Contractors, like projects, are temporary, they’re unique, they introduce change, they generally work in a cross-functional environment and there’s a level of uncertainty about them! And that last point is what you need to understand and manage – getting the best out of them is about managing and reducing risk. To achieve the best outcome, you need to get inside the head of a contractor and understand how they tick.

Contractors need managing all the way through their engagement with you. This starts from the moment you recognise the need for a contract resource and continues right the way through to the moment you part company. The bottom line is, you get out what you put in, so by following these best practice guidelines you’re more likely to be celebrating success than trying to unravel failure.

1. Gain full commitment from your organisation at the outsetBe sure that you have the backing and the budget of your key stakeholders before embarking on recruiting a contractor. There’s nothing worse than spending time on recruitment and selection only to find out there’s no money coming your way.

2. Be clear about what you needThis is where you need to put in some horse-power. Think carefully about what the need is and put it on paper in the form of a job description. Write down the deliverables for the contractor to be successful. This process will also help you figure out what skills the contractor needs, the length of contract and the likely rate you will offer. Plus it will help the recruitment agencies or your HR team attract the right kind of candidates.

3. Determine the best route to bring in the contractorYou may have no choice in this but, if you do, you should decide if you are going to contract directly with the contractor or use recruitment agencies. If the former, make sure that you understand the process your company needs to go through – it inevitably involves HR and Legal. If the latter, take time to work out which agencies will be the most appropriate for you. This is important if you need a specialist contract resource.

4. Review CVs thoroughlyThis isn’t as obvious as it might seem. In my experience many hiring managers don’t put the effort in at this stage and end up wasting time by interviewing the wrong type of candidate. Check that there is continuity of contract employment and check they’ve have not had too many short-term contracts – a tell-tale sign that previous clients didn’t extend them, possibly because they weren’t that great. Do other checks at this stage too. Networking sites such as LinkedIn are a really powerful tool. You can see in seconds who in your network knows the potential candidate and a few quick phone calls can really narrow down the field.

5. Manage the selection processAll too often, hiring managers don’t put the time in to see candidates. Don’t delegate this and don’t ‘wing’ it. Have a structure to your interviews, define who else needs to part of the selection process, turn up on time with a copy of their CV (having reviewed it beforehand!), know what the selection process is going to be and how long it is likely to take – contractors need to know this as, quite often, they are comparing you with other opportunities at other clients and it can be first come, first served. This is your first time with your potential contractor and while it’s important they impress you, it’s just as important that you impress them. Check on their availability too. Some contractors can be immediately available but most will be on one month’s notice.

6. Keep in touch even when you’ve selected someoneOnce you’ve chosen the best applicant, it’s really important to ensure that you keep up a dialogue with your contractor as they go through signing up with the agent/HR and agreeing final terms. Be prepared to negotiate, sometimes on rate, sometimes on expenses. Negotiate a fair rate. If a contractor feels as though they have been screwed down to their minimum on rate, there is a good chance they will keep looking around even if they accept the role. So if you want stability, be fair.

“Contractors need

managing all the

way through their

engagement with

you. This starts

from the moment

you recognise the

need for a contract

resource and

continues right the

way through to the

moment you

part company.”

“Interview is your

first time with

your potential

contractor and while

it’s important they

impress you, it’s just

as important that

you impress them.”

20 MAY 2014 | www.pmtoday.co.uk

Contractors can receive multiple offers and you’ve not got them onboard until they’ve signed. So make sure that they know you care and that you respond quickly to any queries or negotiations. It’s a good time to understand any pre-existing holiday arrangements too.

7. Take time to manage on boardingYou should ensure that your new contractor is going to have a desk, a PC/laptop, access to the right systems, that people know they’re coming in and what their role is going to be. This avoids a huge amount of wasted time and ensures the contractor gets up to speed quickly. Take time to ensure they know their objectives, roles and responsibilities and deliverables. Advise them on the culture of your company, what goes down well and what doesn’t. Be clear about working hours.

8. Monitor progress and feed back regularlyTake time to manage your contract resource. If they feel you care, they are more likely to stay with you and go ‘above and beyond’ when needed. Contractors can be amazingly valuable resources – but you’ve got to ask. Find out what else they know, who they know and what else makes them tick. You might be surprised.

9. Manage changes wellOne of the contractor’s biggest fears is that of change. If things start to change around them and they don’t like the look of it, or they get no information or guidance, they are likely to start looking elsewhere. This is especially important when coming up to contract renewal. You need to be deciding about four weeks ahead of a renewal whether you are likely to renew or not. And you need to let your contractor know. This is really important. Be very aware of their end date.

You should manage rate changes – up or down – personally. It’s important too to understand the seasonality in the contractor market place. Bad times to be becoming available at the end of a contract are July/August (because there are significantly fewer contracts placed over the summer period) and November/December (fewer contracts placed just before Christmas). Contractors are acutely aware of these times in the year as this can adversely affect their income stream for a number of weeks and they can and do change contracts prematurely. So do pay more attention if the contract end date is in one of these months.

10. Manage exits wellIf the time comes to part ways with your contract resource, assuming they’ve not done anything wrong, then manage this professionally. If they’re good, you might consider using them elsewhere in your company. Make sure they do a good handover so that knowledge isn’t lost. Again, this takes time and effort but it’s well worth while.

The overall message is this: treat your contract resource well. Don’t think of them as second class citizens, they are potentially a very valuable asset. By taking these steps, you will reduce the risk of any unexpected changes. Manage them over the entire lifecycle of their engagement and you will get the best out of them.

About the ContributorNeil Goudge is an independent management consultant who has worked for more than a decade as a contractor with numerous blue-chip companies. He is the author of a book entitled “Break Free! Go Contracting!”, providing step-by-step advice on how to become a successful contractor (www.breakfreegocontracting.com)

Before this, Neil experienced life as a consultant with a number of the top UK consultancy firms including Accenture, Ernst & Young (now EY) and PA Consulting Group. In addition, Neil has spent 15 years in line management positions gained in engineering and healthcare companies. Neil has worked internationally across many different industries including Financial Services, Retail, Media, Pharmaceuticals, Healthcare, Engineering, Aerospace and Defence.

“One of the

contractor’s biggest

fears is that of

change. If things

start to change

around them and

they don’t like the

look of it, or they

get no information

or guidance, they are

likely to start looking

elsewhere.”

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