Employees Verses Contractors


Employees Verses Contractors
7 Magical Keys to Managing Employees and Contractors


Not long ago I conducted a survey asking business owners and entrepreneurs, “What is your biggest planning challenge?”  To my surprise one of the answers I received was… “How do I manage contract workers?”  My immediate response was… “Why should it be any different?” When you hire a contract worker, they are working for you… their product or project is yours…. You have the right to dictate the specifics of the job, the measurements, and how you want things done.


In today’s internet world there are virtual assistants, online business managers, virtual staff, work for hour contractors, and many more.  For the most part you can hire any task you might want accomplished in your business virtually.  They might be long term employees or contractors, or maybe someone you hire for one specific task such as a graphic design or copywriting task.


First, there is the rudimentary difference between an employee and an independent contractor.  I suggest you look up the federal guidelines [I am not a lawyer and don’t play one on TV.]  A super resource is Jessica Eaves Mathews and her Leverage a Lawyer program.


There are several keys to managing employees and contract workers.  There really is no difference to managing employees and contractors.  Set yourself and your support staff up for success from the start.


7 Magical Keys to Managing Employees and Contractors


1.       Make sure you clearly know your specific requirements for the job or the project.

a.       Job descriptions should be clear, detailed and written including S.M.A.R.T. principles.

b.      Contracts should also be clearly written with all requirements of the job or project including timelines for deliverables and standards of performance.

c.       Communicate verbally and in writing your desired outcome.

2.       Include language in your job descriptions and contracts that includes an “out” for you if you are not satisfied with employee’s or contractor’s performance.  Sometimes you might want to include a probationary period so that you don’t get stuck with non-performance issues for contractors and employees.



3.       Always design a follow up or measurement aspect.  There are several ways to do this:

a.       Daily reports

b.      Staff meetings

c.       Status reports


4.       Hire slowly…. Fire fast.  This is great advice from one of my mentors Dan Kennedy.  Before you hire and simply throw a “body” at a project… Think!  Determine the requirements, the time line, the skills requires and everything you can think of before you hire.  Interview… Interview… interview!  On the other hand, once you do hire an employee or contractor, make sure your standards are clear and concise.  You will know quickly if someone isn’t working out. Don’t drag on with someone who isn’t working out.  NEXT! And QUICKLY!


5.       Set everyone who supports you and your business up for success from the beginning.  For example, be specific in the task requirement, the measurement tool or time line, final expectations, and encourage feedback.  Ambiguous instructions or tasks won’t work.  Assumptions will fail.


6.       Communicate!  Constant communication creates community and team.  Business owners, who communicate regularly, reward employees and contractors when good things happen and vice versa, will get better results and ward off more challenges.  Use staff meetings and measuring tools as a communication media. 


7.       Delegate…. Don’t abdicate!  Delegation is a wonderful thing!  Beware however, just because a task or entire job is delegated does not mean that your responsibility is relinquished.  You’ll definitely run into challenges.  For example, one business owner told her VA to do her marketing for a specific event.  The VA was not a marketer… what do you think happened?  Failure.  The business owner blamed the VA for the failure but soon realized that she was really the one who should have been the marketer and the VA the one who supported the marketing.


You might be wondering, OK, that’s good advice but HOW do I do this?


The illustration below generally depicts the flow down from your Strategic Plan to your job descriptions. 


Businesses which have developed systems and have an operations manual will definitely have an advantage.  Why?  Because the business owner has thought out and documented “how they do things and to what standard”.  Job descriptions that are written based upon the strategic business and marketing plan, and operations manual, logically fit together hand in glove.  As you develop your strategy and implementation plan the skills required by individuals to get things done will most likely become obvious.


If you need a little assistance developing your S.M.A.R.T. management tools and job descriptions a S.M.A.R.T. Start Partner may help.  Visit here for details.

Gail assists small business owners and entrepreneurs develop business systems and goals and strategic plans using S.M.A.R.T. Principles.  www.gailsaseen.com – Free Gift www.SmartBizToolsForEntrepreneurs.com. Gail Saseen is an author and information marketing business coach and consultant.  She has a unique ability for communicating complex marketing and technology concepts in simplified and understandable language.  Gail is an internationally recognized authority in the areas of: marketing strategy and planning, systems development, direct mail, social media marketing, website and technology implementation, product development, information marketing and coaching. 



8 Responses to “Employees Verses Contractors”

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  1. Great points here Gail! I especially like “delegate, don’t abdicate” – I see that all too often!

  2. Lisa Manyon says:

    Excellent overview… and the importance of overseeing delegation is so key.

    Write on!~


  3. Mitch Tublin says:

    Gail – thoughtfully presented and good guidelines to follow.

  4. Sue Painter says:

    That whole question about whether to contract or hire is usually a thorny one for small biz owners. You’ve made it clear how and what. Thanks, Gail.

  5. Gail
    Thanks! your graphics are excellent BTW!

  6. Great advice and reminders, Gail!! Really good stuff. THANKS! Katherine.

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