Pleasure for both parties

1. Ensure a contractor's workspace is ready to go on day one.

You are probably paying by the hour, so you don't want to waste their time and your money setting up desks, computers, phones and passwords, says Aucklander Colin Upchurch, who did his first, five-month contract with Bluebird Foods in 1988, as finance and administration manager, and has never had a permanent job since.



2. Be clear about expectations.

Set clear objectives and time lines and record them, says Suzi McAlpine, the manager of OCG's sales and marketing executive leasing business.

For development or creative projects, be clear about who owns the intellectual property.

Ensure staff know the boundaries too. Contractors can sometimes become dumping grounds for others' unfinished work, says McAlpine.

Hirers have to own the project but should provide contractors with contacts and define the authority of those with whom they will work.

Upchurch, who got into contracting after suffering redundancy, outlines just why setting boundaries is so important: "I did a contract where I had signing authority for a $23m budget I was responsible for - contractors don't usually get signing authority."

3. Introduce the contractor just to those people they need to know. "Don't introduce your contractor to Joe Bloggs in procurement if the contractor won't be working with Joe Bloggs in procurement," says McAlpine.

4. Don't treat leased execs as employees - they're not. Give them freedom and control and try not to micro-manage.

You hired them as experts so focus on results. But don't ignore them, either.

"The most positive thing bosses can do," says Upchurch, "is make sure you're not treating them as outsiders, even though in reality you are an outsider."

5. Focus on contractor skill rather than cultural fit. An ability to get on with staff is important, but given contractors' short tenure, says McAlpine, their technical prowess is more important.

Minimise the number of meetings contractors have to attend. "You're not paying them to attend meetings," reminds McAlpine.



6. Inform permanent employees of the arrival of a contractor so it isn't a surprise.

To minimise any criticism that the juiciest projects are going to an outsider, give permanent staff a shot at working with the leased exec, and perhaps include coaching and handover in the contract.

7. Encourage contractors to document their work. A written record of what they have done could be useful for future reference.

So how can contractors make the most of their perch? Don Smith, the managing director of Woodbine Associates New Zealand, makes these suggestions:

* Take responsibility for your professional development. You have to keep up-to-date.

* Volunteer for difficult or technically-challenging tasks that will stretch you.

* To avoid the resentment of lesser-paid people on a project, work hard and consistently. You are a hired gun - do the work and deliver the goods.

* Be conscious of your obligation to deliver value for money to your short-term employer. You'll get a good reputation, too.

* Avoid office politics, and don't think and act like a union member; you are an outside professional. If you don't like a situation, exercise your contractor's right to find better work elsewhere.

Executive Taskforce's Kevin Chappell says he had to counsel a contractor who got wrapped up in the politics of the office where she was working. That's a no-no, he says: the sort of person who does tend to invest in the culture and politics around them is best in a permanent position.



* Don't gloss over your legal obligations as a contractor: get on top of accident compensation levies, insurances, fringe benefit tax and the likes, and get a top accountant.

* Have a savings plan - use your relatively high earnings to accelerate your mortgage payments or to invest conservatively.

* Establish a cash buffer for emergencies, containing at least three months living expenses: the market can be cut and thrust, and sometimes inconsistent.

* Review your options from time to time. Are you still enjoying your work? Are you happy with the agency which places you? What changes can you make to improve your position? Seek outside help from time to time, and once a year, sit down and work through the plan and your circumstances.

That includes setting your own boundaries. Colin Upchurch is only half-joking when he says he doesn't roll out of bed "for less than $50 an hour ... lots of people do though".

Marketing contractor Sandra Goodwin adds that you have to be realistic about the differences between permanent and contract employment.

As a contractor, "quite often you'll be working on a project someone else has started - you might not be in there making all the decisions and there's not a lot of flexibility."

Contractors need to be "motivated by the big picture. If you worry about decisions already made you will go mad".

Contractors also must contribute from day one, she adds: "People want contractors who will hit the ground running. Because you've got a new perspective you may be able to see something that others haven't been able to see."

Short-term projects can be intensely busy - "it's quite taxing constantly going into new companies" - so breaks are essential.

But Goodwin warns that contracting is probably not a wise escape route for someone who is simply fed up with their full-time job and unable to find another. "I don't think that really works - I don't think it's the right attitude."

To be a successful contractor "you've got to enjoy seeing different companies".

It's that thrill of the new that keeps Upchurch seeking more contracts: he's worked on contract for big names like Watties, Telecom, Kiwi Packaging, Affco, Carter Holt Harvey, Blue Star and Air New Zealand.

"It's the challenge of new problems and a new environment, the thrill of the chase - living dangerously," he admits. "You've no idea where the next dollar is coming from, so you have to have faith in your own ability."