We’re seeing management-level roles hired on contract more and more. It’s a good way to inject some new ideas into an organization and sort of cross-pollinate best practices. But there are things you have to keep in mind if you’re going to make this part of your strategy. The good news is this is an economical way of adding to management crew; the bad news is that the IRS has some strict guidelines for how you can treat contractors. Here are some thing to keep in mind.
Expectations should be crystal clear
Your freelancer won’t have a good sense of the scope of his or her role. This is something veteran experience will have a better sense of, but this can be addressed. Understand that you’ll have to work hard to be clear about the expectations and goals of the role.
Onboard like a good sailor
With management positions you have to invest a little more upfront, and that means thorough onboarding so that the freelancer can better navigate through the company. It’s crucial that your managers be able to navigate through the company and know how to get things done. You have to help this by onboarding and introducing your freelance hire to everyone that she’ll need to know to get the job done.
Here are things the IRS will want to ensure your contract hire does NOT demonstrate. If they do, they can’t be considered a contract or freelance hire:
Including whether the company has the right to control how the employee does their job.
Including whether the employer controls the financial aspects of the job like providing tools and supplies.
Including whether the worker receives company-sponsored benefits.
Communication is key
It’s going to be crucial that you keep in at least weekly contact. Setting up a formal check-in twice a week is what we recommend.
More and more companies are contracting out leadership positions. As business cultures grow more and more dynamic, strategies and tactics are evolving to meet the needs. With a freelance position you get to inject some new blood into the organization, and someone who’s freelance is likely to be more of a self-starter, so you’re bringing in some ambition that can be infectious. And that’s the good kind of infectious.
NextGen is the brainchild of longtime telecom professionals with nearly 50 years of experience and millions of dollars in Telecom Recruiting Services. We focus on establishing long term relationships with our clients and candidates so we can recruit the best and the brightest in the telecom industry. This ‘quality over quantity’ approach is at the heart of everything we do and has resulted in successful job placements at Fortune 1000 firms worldwide.