Many companies have been moving toward a new business model for quite some time where regular full-time employees are being replaced with part-time professionals, freelancers and independent contractors.
Although this new model seems appealing to some business owners who are trying to keep costs down, working with non-employees, (independent contractors and freelancers) has its own set of challenges. The biggest challenge, by far, is that independent contractors typically work out of their homes, set their own schedules, and control the terms of engagement with those who wish to hire them. If a freelancer doesn’t like or get along with a client, she has the freedom to sever the relationship with little consequence other than non-payment of services. This can be devastating especially when the freelancer quits a job mid-stream and/or demands a much higher rate to finish and deliver a job, holding the company and its job hostage.
So how can you properly manage freelancers and independent contractors who aren’t under your custody and control? Your first and most obvious objective is to find a good and reliable freelancer, and they are usually found through referrals and/or through LinkedIn. There are infinite amounts of people who have paid the measly $300 – $400 to open their own LLC. Some are horrible, most are mediocre, some are great, and then there are a handful who are excellent. Once you’ve completed your due diligence and narrowed your choices down to a select few, consider the following:
1. When interviewing freelancers, discuss your needs as well as theirs to determine if the relationship will work. Any relationship is a two way street – both of you have needs and they must be put on the table. You’ll also want to discuss expectations on both sides.
2. Independent contractors and freelancers are typically most loyal to those companies that pay fast, as in the day the job is complete. Don’t expect freelancers to agree to those 30 or 60-day terms you have with other vendors. Many can’t afford to wait that long for payment, and may even be concerned they will get paid last. Idea: if you guarantee them a reasonable amount of work each month, they may extend a preferred rate to you and make you a priority when there is an urgent need.
3. When there is a problem, (and there will be problems), you’ll need to address them right away. If you’re not well-versed with effective confrontation skills, I-Messages, Shifting Gears and Active Listening, you’ll want to brush up – they teach you how to keep the waters calm and tempers down while solving issues. Also, practicing these skills will ensure a resolution where you both will get your needs met versus focusing on declaring a winner and loser of an argument. Again, keep in mind that freelance relationships are more delicate than employee relationships as you can’t pull a freelancer into your office for a Come to Jesus talk and threaten them with probation. If they are rubbed the wrong way, they have the freedom to send you an invoice for work performed and let all your calls go to voicemail and direct all your emails to the trash. At that point, it doesn’t matter who is right or wrong. Remember that good freelancers have multiple clients who pay them – not just you.
It’s mastering people skills. It’s more E.Q. than I.Q. management. And those who have the skills to build chemistry and communicate effectively with the right people will benefit the most from the new and the old way of doing business.