History shows businesses should prepare for a spike in contractor demand once the economy begins to recover after a crisis. Organizations that hire contractors must prepare for this potential influx to ensure both full-time employees and contractor workers are on the same page, and to make sure operations continue without a hitch. Kim Holly, senior vice president of business development at ISN discusses the three “Ps†of contractor management: Preparation, People, and Platform.
As we work through the economic impact of the COVID-19 pandemic, the financial crisis we navigated in 2008 could be an indicator of what is to come with the employment trends.
The Great Recession showed us to expect a surge in contract work as businesses begin to recover. In fact, since 2010, the share of contractors at U.S. businessesOpens a new window has increased by 15%.
Organizations that hire contractors must prepare for this potential influx to ensure both full-time employees and contractor workers are on the same page, and to make sure operations continue without a hitch.
The 3 “Ps†of Contractor Management
Managing a substantial influx of contractors can be an overwhelming task. However, with the right principles — what I call the three “Ps†— you can incorporate more contractors into your operations with ease and achieve business success as a result.
1. Preparation
Pre-project preparation is an important factor in choosing a contractor. Without the proper preparation, contractors can end up hurting your business rather than delivering support and value.
Ensure contractors are prepared for projects by checking pre-qualifiers. For example, if you need to hire an additional construction contractor to your building site, there are many boxes to check before hiring:
- Does the contractor have their own insurance?
- Will they use your equipment or supply their own?
- How are their contracts structured?
- In the context of a crisis or unforeseen event — do they have the right personal protective equipment (PPE)?
- Does the contractor have a business continuity plan in case any of their workers gets sick?
Confirming these key, granular details about your contractors before the job starts improves your ability to select the right partners. Without preparation, you could end up with a poor work product and waste valuable budget spent in the process.
2. People
The term “people†applies to two parties — your existing employees and the contractors.
Existing employees and onsite management should be made aware of any increase in the presence of third-party contractors at your business. Due to the unfamiliarity contractors may have with your plant or job site, they may need additional training and oversight from your full-time employees to get up to speed. But when employees are not made aware of incoming contractors, it can lead to breakdowns in processes and create bottlenecks.
The risk for process breakdown is especially prevalent during a pandemic. Take onsite health and safety protocols, for instance. If onsite employees do not make contractors aware of measures like pre-shift temperature checks or proper disposal of PPE, it puts the plant at a higher risk for a possible infection outbreak.
To reduce the risk of inefficient operations, clearly communicate the addition of contractors to your employees and outline protocols for working with contractors. This step is critical to helping employees and contractors start off on the right foot and execute projects harmoniously.
3. Platform
To aid the preparation and management of employees and contractors, leverage a contractor management platform. This technology, which is accessible through an online portal or mobile app, gives your business a digital leg up in handling contractor relationships.
A tool such as virtual trainingOpens a new window can reduce the need for onsite orientations that typically require large social gatherings with contractors. Additionally, data and analytics technologies help you choose the right contractor with the ability to view their past performance. By using a comprehensive contractor management platform, companies hiring contractors can view historical data on incidents/safety performance, citations, job performance onsite and more, to better inform hiring decisions. By accessing an aggregate source of analytics on contractor companies, hiring organizations can feel more confident and informed in each third-party hiring decision they make. Contractor management platforms can also help examine contractors’ professional certifications and training qualifications to find the perfect match for your organization.
Contractor management platforms deliver access to a community of other hiring businesses like your own and regional contractors. These communities typically offer thought leadership discussions on contractor management and allow platform members to share the best practices with each other. And in the event that a contractor needs to pull out of a job unexpectedly, a platform enables you to swiftly find a reputable replacement.
Contractor management can seem like a daunting obstacle on top of the pressures of the pandemic, but when done effectively, it can help drive business forward. By following the three “Ps†of contractor management, you can lay the groundwork for success — regardless of the number of contractors you employ.