Guide to hiring the perfect contractor

Contactors provide an invaluable service harnessed by businesses of all shapes and sizes. For example, suppose a start-up lacks the resources to get their company off the ground, or a multinational organisation needs support filling a skills gap in their team; contractors are the temporary solution to plug the gap in any scenario where headcounts are limited, and candidate availability is scarce. 

Due to our experience within many industries, from business services to retail, we recognise how instrumental contractors can be to businesses looking to overcome their interim hiring challenges. So we've put together this guide to hiring the perfect contractor to help you understand the importance of contractor services and how they can deliver the results to take your business forward.

Within this guide, you will unlock the following:

How to source contractors

Many businesses engage with recruitment agencies to fill their contract openings, especially when they need a hiring solution at short notice to combat their immediate talent and skills shortages.

Researching agencies you want to represent you is a great way to understand your market and get a feel for how an agency advertises similar contracts. In addition, shortlisting agencies based on research will allow you to feel confident that you have an extensive understanding of their respective industries, sectors and hiring experience. When researching, you must look for an agency with a readily available database of candidates with the specialist marketing and digital skill sets you require. 

In addition, you should qualify with your contract recruitment agency whether they handle contract invoices, payroll and regulatory contract compliance. Although the markup varies, an agency typically takes care of these stresses so that you can focus on your day-to-day business operations. 

Another way to source contractors is by posting contract positions on job boards or contract recruitment agency websites. Again, utilising specialist sites are beneficial because they will have a wealth of individuals with the qualifications and experience you need. For example, you may use a specialist marketing temp agency like 3Search to upload a vacancy if you're trying to fill a role for your marketing contract jobs. 

What should you expect from a contractor's CV and interview?

A contractor's CV may not follow the "standard" format you’d expect to see with a permanent employee's CV. They may only list their most current and pertinent contracts because they apply for certain projects requiring specific talents. Therefore, you will need to approach their CVs differently than you would with permanent candidates, looking for specific skills and experiences that indicate the contractor is right for the job.

Since this is a business-to-business transaction, the contractor should be ready to present their expertise and services to you during the interview. Onboarding a contractor often happens quickly; this is your chance to determine whether they have the qualifications and experience listed on their CV. It is essential to understand why the contractor is interested in the assignment, as is establishing whether they’ll integrate with the broader team and work within the contracted time period/hours. 

Additional considerations include confirming if the contractor has the relevant insurance, licences or permits required to undertake the work and establishing how any additional charges will be handled or if their work comes with a warranty or guarantee.  

What does the onboarding process look like for contractors? 

A contractor's onboarding process differs from how you would onboard a permanent employee. For example, you don't owe the contractor any employer contributions, as they are technically self-employed. So, in most cases, they manage tax requirements on their own. 

To help you ensure that the onboarding process is as smooth as possible, we've created a list of steps that you can take to provide the best outcome for you and the contractor. 

1. Create a clear and concise job description

This is seen as the first step in the onboarding process. It’s crucial that you create a job description that establishes the day-to-day responsibilities of the contractor. You should include the work hours and location within the description, to name a few examples.  

2. Draft an agreement

In addition to creating a job description, you'll need to create a contractor agreement. Again, this paperwork needs to be different from the agreement typically used for a permanent hire. The contractor agreement should establish the relationship between your company and the contractor. The document would need to contain the following: 

• Scope of work
• Work hours
• Deadlines
• Tracking tools that the contractor should use
• Ownership rights 
• Confidentiality agreements 
• Payment and billing terms 
• Invoicing terms 
• Termination details 
• Notice periods

3. Training

Everyone needs on-the-job training to understand the context of the business. For example, if you are looking to hire a contractor, you would need to create training schedules and customised training programmes to ensure that your contractor is up to speed with how the business operates. 

You can provide training material on safety issues, workplace behaviour, policies and procedures. By doing this, you are allowing your contractor to understand the culture of the business and how it operates before they begin work. 

4. Access tools and process documents 

Ensuring that a contractor can access the correct tools and process documents is vital to ensure the project can begin without delay. You must provide detailed and up-to-date process documents to prevent this from occurring. Often referred to as a knowledge base, these documents can prevent trivial issues, such as what to do if a contractor has forgotten a password or something more role-oriented such as using a management system. 

Placing these documents in a shared folder through a cloud file-sharing system would be beneficial. This will ensure that the contractor can work seamlessly and deal with job-related issues without requiring much help from the permanent team. It will also allow you to control what they see and when, giving you extra security for the period after the contract is finished.

How can you end a contract with a contractor? 

You might end a contract with a contractor for multiple reasons. For example, it might be due to quality of work issues, a reduced budget or a change in the needs of the business. No matter the reason, you need to be aware of the elements involved with ending a contract.

Legal factors

If you have decided to end a contractor relationship, regardless of reasonings, you must consider certain legal factors before proceeding. 

As a contractor is a self-employed individual, you can't terminate their employment as you would a permanent staff member. Instead, you would have to release the professional services agreement and the statement of work between your company and the contractor. 

You would still be responsible for honouring the terms of the contract, but you can review the original agreement with the contractor and follow the correct termination provisions, notice provisions and payment terms. 

If you need help understanding the legal aspects of terminating a contract, it would be beneficial for you to reach out to your in-house legal team for more advice. Seeking clarity on the legal elements of terminating a contractor helps you honour the agreement with them and minimise potential risks. 

HR best practices

Parting on good terms is always the best course of action when dealing with termination. Ideally, you would want to treat the contractor like a permanent employee. Contractors are well-connected to other contractors doing similar work and could share their experience with their network. If you present a positive and respectful workplace, you could receive more contractors wanting to collaborate on projects. 

Here are some of the ways that you can show consideration to contractors at the end of their contract: