4 Things to Consider before Hiring a Contractor

There are a lot of benefits to hiring contractors for the average business, but that does not mean that it is safe to do so without giving the matter a lot of thought. There are a few things that ever manager needs to consider before they decide to hire a contractor if they want to be confident that they are making a good decision.

Cost-Benefit Analysis

The first thing to consider is a simple cost-benefit analysis for the business. You should understand what you stand to gain by hiring a contractor, and calculate the value of the work that the contractor will do. That will be easier for some contractors than others. If you can’t get precise values, you should make the best estimate that you can based on market research and your prior experience.

Once you have figured out the value of the contractor’s work, you should compare it to the cost of hiring that contractor, including any administrative expenses or taxes that apply. If the expected value exceeds the cost of hiring the contractor and hiring that contractor does not prevent you from taking advantage of superior opportunities, you can move on to the rest of the decision-making process.

Reputation

Contractors get work based on their reputation, so you should take the time to do some research on any contractors that you are considering. Look up their portfolio and check to see if they have worked on successful projects in the past. If possible, speak to their former employers to see if they worked well with other businesses. This will help you figure out if the contractor will be a good fit with your business and is capable of being productive.

Do You Need Help?

You should also take a moment to consider whether a contractor is truly necessary for your business. It may be your only option if you need somebody with skills that none of your employees have, but it may also be possible to send one of your current employees to a training session instead. On the other hand, that may not be a good investment if you do not expect to need somebody with those skills very often, or if it takes a long time to acquire them.

Scheduling

The final factor that you need to consider is the contractor’s availability. Most contractors try to maintain a large pool of clients, so they may not always be available right when you want them. In that case, you need to decide if you can afford to adjust your schedule to match their availability or if you should seek out an alternate contractor so you can move ahead on your project as quickly as possible.

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