Everything you need to know about sourcing, hiring, and working with contractors, freelancers, and suppliers.
If you’ve got an important project on your to-do list, then you’re going to want the people with the right skills and knowledge to be supporting you on it, and one of the best ways to do that is to source independent workers with those exact skills you require. But if you’re not used to working with contractors or freelancers, then the process can feel a little bit overwhelming – where do you find the right people? How do you choose the right people for your project? And what will the working arrangement look like?
If this sounds like you, then you’re in the right place. We’re going to break down everything you need to know about sourcing, hiring, and working with contractors, freelancers and suppliers to make it easy to get your project smoothly off the ground. This article will cover everything from the hiring process to creating the contract, managing the relationship and reviewing and paying for the work.
Sourcing independent workers
First things first, where and how do you find independent workers to support you on your project? One of the easiest ways to do this is via a recruitment agency. A good recruitment agency can take the work out of finding those with the exact skills and knowledge you need, and this can be appealing if you’re new to working with contractors or freelancers.
But be sure to pick the right recruitment agency for your needs, as there are pros and cons to each of them. Make a shortlist and set out to have a conversation with a few agencies before agreeing to work with them on sourcing your requirements.
Things you’ll want to consider include whether they have experience and understanding of the industry in which you work, how transparent they are about their fees, and is their knowledge on independent worker legislation up to date. The point of working with a recruitment agency is to support and guide you in the procurement process, so it’s important you feel in safe hands with them.
The other option is to source directly, which if you’re new to this can feel like a bit of a minefield but if you have the time to put in the work then it can be a great way to source suppliers without any added costs. The first thing you can do is have a look at your existing network to see if there’s anyone who fits the profile for your requirements. Check out any ex-employees, networking contacts or old colleagues – even if they don’t fit the bill themselves, they may be able to refer someone who does. Using social networks such as LinkedIn are great for this kind of thing, as you can connect with lots of potential suppliers who may also be looking for work.
If you’d like to know more about the pros and cons of sourcing directly or through an agency, you can check out our article for a more in-depth look from both sides.
How to choose the right person for the job
So once you’ve shortlisted a number of potential people for the job, now you need to figure out who’s the best fit for your project. Sifting through CVs can be time-consuming, but it’s worth taking the time to pick the right people to meet for an interview.
Hiring a contractor or freelancer isn’t like hiring an employee, so their CV or resume will usually only reference projects that demonstrate the skills you are looking for. And so when looking through resumes it can be helpful to view the hiring process more like a business transaction. Have your wants and needs in mind when looking through each person’s experience, and be clear on your objectives, because ultimately the person you choose will be responsible for delivering those objectives within a specific time frame.
Looking out for length of contracts and contract renewals (or lack thereof) can be a good indicator of how someone works and if you feel they’d work well on your project based on what will be expected of them.
Since independent workers are not going to be working for you permanently, and they tend to work remotely, you may not think that cultural fit is so important. However, it is still vital to assess their attitudes and values to see whether they align with yours. The last thing you need on an important project is someone that rubs everyone else up the wrong way. Not only will this make the project potentially painful to complete, but it may also result in not meeting your objectives when and how you wanted to.
When interviewing an independent worker be sure to find out if they are genuinely interested in working on the project, do they demonstrate initiative, and what are their communication skills like.
For more tips, check out our 6 do’s and don’ts when hiring a third-party supplier.
Creating your independent worker or supplier contract
Whether you’re hiring someone for six days or six months, having a contract in place is vital to keeping all parties happy and safe during the course of the project. Some independent workers will have a standard contract they use, or if sourcing through an agency they will have a contract they can put in place.
However, contracts and statements of work can be negotiated and tailored to your individual project, so if you’re considering drawing one up yourself, then there are plenty of online templates you can use for guidance if it’s your first time. A contract should always include a statement to say the worker is self-employed and paying for their own taxes, and that they work on their own terms. This will keep both parties safe in regards to independent worker legislation such as IR35 in the UK.
You’ll also want to consider if you want the supplier to sign an NDA and intellectual property clause if they are doing creative work for you such as logos, website graphics etc. Finally, a termination clause should be in place regarding how and when either party can end the agreement.
For a more in-depth look into statements of work and contracting, check out our article on How to Construct a Statement of Work (SoW).
Paying your independent workers
When it comes to paying freelancers, contractors or suppliers this is slightly different to paying employees as they don’t get paid a salary. Typically, independent workers will invoice the organisation either weekly, monthly, or after a project is complete, and this will vary depending on your working arrangement.
When it comes to pay, most freelancers will have a set rate or fee they charge, but the cost could vary depending on what is expected of them. Invoices are usually required to be paid within a certain time frame, and it’s important that you keep on top of these payments to ensure the working relationship is maintained throughout the project. The amount you pay your independent workers will be negotiated and agreed upon before the work commences, either via the agency or directly depending on how you sourced them.
Don’t let cheap rates tempt you, or higher rates fool you. Always be sure to get to know the worker and their wider skills and interests to determine whether they’re right for your project. Choosing a freelancer or contractor solely on price could lead to your project needs not being met in the way you’d hoped.
Managing the working relationship
So now you’ve hired your ideal supplier or worker for your project, but it doesn’t end there. To ensure you meet your objectives and ideal outcomes, you must nurture and support the relationship as much as possible.
While looking through resumes may require you to think of the sourcing process as a business transaction, managing the relationship requires the complete opposite. Building a strong relationship will ensure you get the best from your contractor or supplier, and to do this you must take the time to communicate clearly with them throughout the project.
Be clear about what you want and provide as much information upfront as possible to ensure there are no crossed wires from the get-go. Using a project management tool can really help in this area, especially when the supplier is working remotely. This way you can keep up to date on every step of the project and have a clear warning if deadlines won’t be met or if something isn’t quite right, so you can resolve it quickly and easily.
It’s important to treat your contractors in the same way you would your employees and create a stable and supportive working environment so that they feel included as part of the team for the duration of the project.
You can read more about managing relationships with independent contractors here.
Terminating the contract
Hopefully, you’ll be happy with the choice you made when hiring someone for your project, but it doesn’t always work out and that’s okay. If something isn’t going to plan, it’s important to speak up and be clear about what’s not working. This is where having a contract and a statement of work come in really helpful, along with documenting all work and feedback along the way.
If you need to let a supplier go, do not give them any more work to complete, including any revisions already submitted for feedback, and make sure you pay them for all the work completed until that point. If you’ve hired through an agency, then you won’t have to worry too much as they will take care of all the formalities.
Remember that the relationship works both ways, and the contractor also has the right to end the contract if they feel you’re not holding up your end of the agreement. Ultimately successful project work all comes down to clear, regular communication, and even still sometimes things just don’t work, but at least you can have peace of mind you managed the relationship as best you could.
So now you’re ready to hire your independent workers for your next project! For more useful tips on the organisation/supplier relationship, keep up to date with WorkSavvy’s latest content – sign up to our mailing list here.
Comments