10 Rules for Working with #Contractors at Your Business

At AGPR we do a fair amount of work for clients utilizing trusted contractors. This is often a must for a smaller agency, particularly with short-term projects or accounts that require specialty services as part of the overall contract. Many types of businesses utilize contractors, from copywriters to a custom home builder, and most of the time it is beneficial for all involved.

However, after nearly seven years in business, I have picked up a few rules for working with contractors that may serve you well. So, if you are considering hiring a “1099”, read on for 10 Rules for Working with Contractors at Your Business!

1. Get a contract with your contractor. This sounds simple, but many businesses operate on a handshake or vague emails that fail to detail expectations. This will bite you in the butt later. Guaranteed!
2. That said, establish a scope of work detailing exactly what your contractor is being paid to do, what they are being paid and what is NOT in their assigned duties. For example, never leave it to chance that your contracted social media manager–not you–is supposed to fix his mistakes.
3. Make sure contractors are held accountable. Establish deadlines, a code of conduct (especially if your contractor communicates directly with clients) and provisions or even sanctions for late, low-quality or incomplete work. Otherwise, you may be cleaning up the mess after your contractor drops the ball, and (gallingly!), you’ll still have to pay him.
4. Get a W-9 before you pay a contractor one dime. When a business pays an independent contractor $600 or more over the course of a tax year, it is required to report these payments to the IRS on an information return called form 1099-MISC. Businesses use the name, address and Social Security or tax identification number from form W-9 to complete form 1099-MISC. A vendor can face fines from the IRS for not sending a W9, but who needs the hassle? Get the W-9.
5. Pay Your Contractors on Time. We make it a policy to pay our contractors as soon as possible–that usually means sooner than the typical 30-day invoice. We believe it encourages better quality work and keeps top contractors in our orbit. We also think a bonus is in order for superior work!
6. Vet Contractors. We’ve occasionally worked with contractors who looked great on paper and our first meeting, but their work quality declined quickly. Do a thorough background check and ask tough questions of references. Remember, you are trusting a contractor with your customers–your very livelihood. Make sure they are reliable, professional, and know what they are doing. If a contractor slips through who is not performing well, get it corrected immediately–or let them go as soon as possible. Remember, you are putting your client/customer relationships at risk when you allow sub-par work to be performed.
7. Hire Cheap, Get Cheap Work. It’s not always possible to pay top dollar for the very best talent available, but hiring cheap just to ensure a better profit margin is ultimately self-defeating. You get what you pay for…
8. Communication is Key. Make sure you talk with your contractors often and ask for regular progress reports. Some contractors will assume if you’re not in touch you do not care. I once learned a very important lesson about management: your employees (and contractors) will value what you value. If you appear disinterested or disparaging of a task, client, or project, they will often adopt that behavior, also.
9. Spot check. Always check your contractors’ work. If they are updating a website, make sure it is to spec and on time. If they are posting to social media, make sure your contractor is sticking to client goals–not to mention posting items that are spelled correctly with valid links.
10. Respect your contractor. Most contractors want to do quality work and help you succeed. Enable your contractors to do that by ensuring they have the information, tools, and time they need to do the job. Take care of your contractors, and nine times out of ten, they will take care of you.

I hope these tips are useful, no matter what your business may be. Remember, if we can help you with your marketing, PR, or management needs, please get in touch!

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