Hiring A Contractor
WHY?
You may have chosen to hire a freelance worker for a number of reasons;
Immediate impact; you will typically be hiring to meet a specific requirement and can afford to identify a specialist accordingly, without investing in training or necessitating a broader skill set.
Increased flexibility; you will often be hiring on short-term contracts, which allows you to react to the market, internal changes or requirements as required. The contract is king and you don’t have the legalities surrounding the termination of a permanent employee as a result of a volatile market.
Rare skills; the competition is often intense for specialised employees, particularly if it revolves around new technology. This is soon recognised and the vast majority of candidates will turn to contracting only.
In hiring a specialist, you are giving up an element of control since they will often have a clearer idea of the daily tasks necessitated to meet your ultimate expectations. This is only exasperated by the frequent use of short-term contractors, when they may have little loyalty to your company should a competitor come calling.
KEY FACTORS TO CONSIDER:
Length of contract; is it over a period of time, against set objectors or a combination of both?
What specific services are to be provided?
What rate are they to be paid at? Contractors typically operate under a daily rate. If you’re unsure of what to offer; look at relevant recruiter adverts or divide the anticipated gross salary by 235 days (the average number of days a permanent employee may work per year).
They are responsible for their professional licences, taxation and a number of their insurances; for example, Professional Indemnity and Public Liability. In short, if they are representing you, you need to ensure that your liability mirrors theirs.
Whom are you hiring? Are they operating under their own limited company or under an umbrella group that will take responsibility for their paperwork. If the latter, does the contractor have the Right to Work in the UK or are they being sponsored by this Third Party?
Notice periods; are either party able to give notice to terminate the contract prior to its expiry.
Payment terms; are they to invoice with an accompanying timesheet at the end of every week or month? What are your payment terms, which can be anything between 7-40days.
When hiring a contractor, the most critical task is to clearly define your requirement and ensure that the contract reflects the objective without incurring greater liabilities on your company.
If you are considering hiring a contractor, please feel free to call!
The Barclay Search Team
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