The Care and Feeding of Contractors

Here’s how to get the most from your contractors, while reducing the overall risk to your project.

by Neal Whitten, PMP, Contributing Editor

WHAT DO I MEAN BY CONTRACTOR? A person who has been hired to perform one or more activities. The contractor typically resides at the purchasing company’s location and works alongside other contractors and company employees. The contractor might work under the direction of a representative of the contractor’s company or might work directly under the direction of the purchasing company.
Today, more than ever, contractors are integral to the success of most companies. However, many company employees -- some in management -- often resent contractors and treat them as second-class members of a project. This thinking is professionally immature, shortsighted, and, simply, bad business. Let’s look at a short list of actions that can help ensure that you obtain the best performance from your contractors.
Immediately Take the Time to Teach Them the Rules of Working in the Organization. Contractors don’t know the rules for working in your company and on your project. A 30-minute introductory class is an example of teaching them what they need to know...and informing them of what is off limits. Contractors are not to be treated as company employees, but they must have access to information and resources that are required for them to perform satisfactorily on their project.
Welcome Them as "Full" Members of the Project Team. If you expect to draw upon their full potential, contractors should be made to feel like wanted and needed members of the project team. Treat them with the respect and dignity of first-class members and they will perform so. This means expecting the same -- no more, no less -- from contractors as you do from other project members. For example, a contractor’s progress typically should be tracked with the same frequency, intensity, and method as any other project member’s.
Clarify From Whom They Take Direction. Contractors can operate successfully in a number of modes of giving or taking direction, such as being self-directed or taking direction from other contractors. However, whenever possible and appropriate, it is recommended that contractors work under the direction of a company employee. Typically, this helps a company to better maintain control over its interests.
Ensure Their Continual Education to Keep Them Satisfactorily Productive. Contractors are hired for their knowledge and skills. However, there almost always will be new information, technologies, and/or processes that they will need to learn. Expect to provide various types of training and education when needed. (Who picks up the tab is negotiable.) But take care to provide only the education and training needed -- and no more. Why? For two key reasons: (1) "over-educating" will cut into their productivity, and (2) contractors are usually considered a temporary resource; therefore, invest only to the point that you must to get the job done.
It is Far More Efficient to Weed Out Nonperformers Before They are Hired. Although most contractors whom you select will perform well, expect that occasionally you will discover a poor performer. Sometimes it can take months to do so...and more months to recover. Plan ahead to weed out the poor performers as early as possible. One technique is to beef up the interview process. Another is to give newly hired contractors a specific piece of work that they can demonstrate their skills on immediately -- something that can be completed within one to four weeks.
Awards Can Help Draw Out the Best Performance. Consider allowing contractors to earn awards. You might want to designate a specific award that only a contractor can earn. You are missing a great opportunity for motivating excellence among your contractors if you have no way to reward them individually for exceptional performance.

CONTRACTORS ARE A VALUED resource to cherish and nurture. Make the best use of this business investment. Everyone wins! [Note: You should always consult your legal representative regarding the treatment of contractors.]

Neal Whitten, PMP, president of The Neal Whitten Group (www.nealwhittengroup.com), is a speaker, trainer, consultant, mentor, and author in project management and employee development. His books include The EnterPrize Organization: Organizing Software Projects for Accountability and Success and Managing Software Development Projects: Formula for Success.

This material is reprinted from PM Network magazine (February 2001) with permission of the Project Management Institute Headquarters, Four Campus Boulevard, Newtown Square, PA 19073-2399 USA. Phone: (610) 356-4600. Fax: (610) 356-4647. Project Management Institute (PMI) is the world's leading project management association with over 70,000 members worldwide. For further information, contact PMI Headquarters at (610) 356-4600 or visit the web site at www.pmi.org. "PMI" and "PM Network" are trademarks of the Project Management Institute, Inc. © 2001 Project Management Institute, Inc. All rights reserved.

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