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With over one million independent contractors in the Australian labour force, MPA asks Matthew Franceschini, chief executive officer of Entity Solutions, for his advice on how to engage contract workers...

One of the biggest challenges small business owners face is the perceived need to wear every hat. Full-time employees that specialise in fields such as marketing, accounting, design and taxation may be out of reach for many small businesses, that don’t have the budget to take advantage of personnel with specialised expertise.

However, over the past 10 years there has been a significant shift towards employers engaging independent workers. Over one million independent contracts now exist within the Australian labour force, providing specialised skills and experience to small business while enjoying independent working lives. Offering a number of benefits to small business, contract specialists provide a high level of expertise and experience, often at short notice and for less than the cost of a full-time employee.

They are often entrusted with critical projects and are provided with a remarkable degree of freedom – which can be unsettling for employers who are used to dealing with more traditional 9 to 5 employees. Perhaps unsurprisingly then, contract workers often feel a high level of attachment to their client organisation. A recent survey conducted by Entity Solutions and Monash University found that in general, contract workers are enthusiastic and happy at work while being satisfied with their independent working life.

The survey also showed that many contract workers are open to close engagement with their clients, who they readily identify with and will, given the right support and encouragement, go beyond the extra mile to deliver quality results. How then does a small business take advantage of this experienced, knowledgeable and loyal workforce? Matthew Franceschini, CEO of Entity Solutions, offers his advice.

Character traits

According to survey respondents, contractors feel very positive about their work: 87% report that they are satisfied working as a contractor and 87% are satisfied with the kind of work that they do. Pride in work is almost a defining trait. They’re happy when working intensely, and bring an enthusiasm and energy to their tasks.

Their sense of personal well-being is high as the independent way of working also builds confidence. 85% of contractors feel they are prepared for most of the demands in their jobs, and 88% are comfortable that they can usually handle whatever comes their way. Most contractors are likely to be highly competent and self-aware individuals.

How they feel about you

From psychologists to HR management practitioners, much has been written about the need for gaining commitment to the organisation from permanent employees. Yet there is rarely any consideration given to building commitment among a company’s contracted workforce.
The good news is that a large number of contractors feel positively about their clients. One in two agree that they would be very happy to spend the rest of their careers working for their current client organisation. The same number feels as if their current client organisation’s problems are their own. 

These results indicate that contractors feel commitment to their client, which is pleasing for organisations that engage a contractor’s services. It also suggests there may be potential for a reassessment as to just what the client/contractor relationship can deliver. The majority of contractors also believe that the commitment is a two-way street. More than 70% believe that their client organisation cares about their opinions, is there to help if they experience problems, and that the client takes pride in their accomplishments at work.

These positive perceptions indicate that contractors are aware that any increased effort will be noticed by their client – and rewarded. It is a solid basis for the relationship and has important implications for employers, because contractors who believe they are valued are likely to increase their desire to help the organisation reach its objectives. In other words, if managed effectively the contractor /client relationship will foster mutual trust between the parties, matching the objectives and commitments of the contractor to the organisation.

Successful strategies

So how do you get the most from your contractors? The first step is to ensure you have ‘good’ contracts with your contractors. This includes clear start and end dates, transparency in expectations, and good communication and documentation. Being prepared prior to the commencement of the contract is helpful – as is paying your contractors on time.

Another aspect of a successful relationship is ensuring that you are compliant with the latest workplace legislation – paying your contractors on time every time; and managing your back-office processes as seamlessly as possible, in terms of providing a safe workplace and having all your insurance policies in check. There are organisations that can help with the entire engagement process: ensuring all insurances, statutory and OH&S and other legal requirements are covered, streamlining processes and establishing benchmark standards.

Another theme to emerge from the survey was the ‘hidden value’ contractors bring to client organisations. As their name suggests, contractors are independent and professional. Organisations engage them because of their expertise, so acknowledge their skills and consult with them where appropriate. A lack of integration between contractors and permanent co-workers can be a cause for frustration.

If your contractor is engaged for the mid to long term consider offering access to induction programs and including the contractor in team activities. If the project merits, you may even consider incentives such as performance bonuses or professional development opportunities.
Recognise that contractors like the challenging and demanding nature of contracting: give them the change and stimulation they seek. Understand that as a client you are the ‘significant other’ in your contractor’s working life, so show them that you appreciate their efforts. Encourage them in their work and they will more than likely repay you and your organisation with enthusiasm, energy and results. Finally, recognise that contractors choose to contract because they want the flexibility, variety of work and sense of freedom. Contented staff makes for a productive workplace.

Matthew Franceschini is the CEO and founding partner of Entity Solutions, an operator in the professional engagement services industry

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