KEY POINTS:
Keeping your department running smoothly after a key member of the team leaves can put a real strain on those left behind.
A big gap can be created when someone resigns, becomes ill or leaves suddenly due to illness or an urgent family commitment. And the chances of replacing that person quickly with someone who can fit into the team is near impossible, given the ongoing tight labour market.
It's in these situations that an executive contractor may not only save the day - but prevent the rest of your team stressing out with increased demands on their time as jobs are delegated down the line.
A specialist in executive leasing is John Buchanan, general manager contracting at Executive Taskforce. He says the big advantage of leasing is that employers can get someone at short notice who is 'very experienced'.
'Businesses in New Zealand are now running pretty lean when it comes to staff numbers,' he says. 'So if a company is one person short there's not a lot of flesh left to cover someone's job after they have left.'
Buchanan says employers using contract staff don't have to worry as much about cultural fit, soft skills or succession planning. Sandy Murray of recruitment firm Momentum agrees.
'Contractors have a great deal of experience and are usually more highly qualified than the job requires,' she says. 'Therefore, they have a far greater skill set to bring to the role. The employer will get someone who can walk in and do the job.'
David Smith is a chartered accountant who has been working on the executive contract circuit for two years. He says he couldn't go back to a full-time job again.
'I enjoy the lifestyle,' he says. 'Accounting can be repetitive, so doing short-term contracts means I don't get bored or get into a routine.'
'I don't believe it is financially better working as a contractor - in fact it's probably worse as we don't get holiday pay or training costs,' he says. 'I can claim a few expenses against tax. But ultimately I'm doing this because it's a lifestyle choice.'
But working as a contractor can mean you are left out of the normal office water-cooler gossip, company events and after hours get-togethers.
Buchanan says this happens because contractors are perceived by their colleagues as someone with no long-term commitment to them or the company.
'Contractors need to be included in workplace social activities and lunch- time meetings,' he says. It is unfortunate that some contractors are left out on a limb - so it's up to their colleagues to invite them along.'
Fulltime staff should be aware though that the 'temporary' colleague could very well be taken on full time.
'It does happen,' says Murray. 'Contractors are sometimes offered a staff position or a job is created for them because the employer realises the value of a person like that.'
The way contractors are employed is much like any temporary staff. However, a contractor will probably negotiate the pay rate with the employer and may ask for things such as a training allowance or any other perks that fit the position. So employers should be prepared to work with the right person to reach an agreement, says Buchanan.
Buchanan says Executive Taskforce pays its contractors either an hourly, daily or weekly rate and invoices companies in return.
Security and confidentiality is worth considering. The person who's helping you this month may end up working at your competitor's office next month.
'Contractors will sign confidentiality agreements with employers and in fact we have all our contractors sign a contract with us that covers intellectual property rights,' says Buchanan. 'And when they go into a particular role they will sign anything the employer requires of them - everything is discussed and agreed up front. In any event, Auckland is a small place and if anything untoward happened it would soon get around and a contractor would find themselves in difficulty.'
Steve Hart can be contacted at www.stevehart.co.nz
- Extra, HoS
