Full-Timers vs. Consultants? (part 2)
February 15th, 2009
… in which we continue yesterday’s post regarding the issue of hiring a full-time employee vs. a consultant or independent contractor. In case you missed it, go ahead and read the post. We’ll wait.
Ready? Good: Here’s what Rodger Roeser, owner and President of Eisen Marketing Group, had to say about the issue:
“This is a no-brainer in this economy. Hiring a firm (graphic, PR, advertising, marketing) is just soooooo much more cost-effective. You’re only paying for the work you need done. There’s typically a finite beginning and end. Agency doesn’t drink your coffee, never calls in sick. Much more expertise, WAY less overhead.”
Karen Tripi Associates, an executive recruiter since 1985, seems to agree with Rodger: Jamie Serino over at KTA forwarded a press release noting that the company has just launched “a new division that specializes in finding the highest quality marketing professionals for contract, freelance and short-term project positions. ”
“In this challenging time, companies are looking for alternative staffing solutions,” said Karen Tripi, President of KTA. Evidently.
Harriet Cohen of Training Solutions, a boutique consulting firm, notes that “the benefit I bring to my clients is the ability to be up on the trends and experts, and to be able to offer current state of the art high level staff at lower prices. I also offer more objectivity, in addition, I can tell the truth more easily without fear of being fired or labeled. I am finding more companies are outsourcing those foundation or creative programs that are adjuncts to their business and it frees them to focus on their business.
“The flip side of the argument,” Harriet notes, “is if the assignment is sensitive or deals with really understanding the culture and there isn’t a lot of time to get up to speed then internal is the way to go. Overall if the work can be done quickly efficiently and reliably by an outsourced agency thereby freeing internal staff to work on what is most important for the success of the company then outsourcing is the way to go.”
Meanwhile, something of a middle ground is noted by Jamie Pennington of Flexible Executives, who presents “a possible third option: Instead of hiring full-timers or signing up for lengthy retainers, the market seems to be moving toward hiring help on an as-needed basis, i.e. flexible executives. Marketing is our biggest category, with clients calling on our executives (who average 18 years experience, are fully vetted by our company, and proven leaders in their fields) being brought in as consultants on a project basis as demand warrants.
“For instance,” Jamie continues, “a company is launching a new product and needs to conduct market research, or hire a seasoned PR executive to handle the campaign – enter a flexible executive who comes in with a defined scope of work, outlined deliverables, no minimums and no retainers. Virtually all projects are priced not to exceed the total amount, without worrying about hourly fees.”
Finally, Joni Daniels of Daniels & Associates offers this sage advice:
“Any change will involve some start up costs (money, training, orientation) so that has to be figured into the decision,” Joni observes. “Focus on your current needs: Do you need a proven track record? Do you have enough work to keep someone active and productive full time? Do you foresee growing needs or know exactly what you need and don’t need input as to additional services/products? What happens if the individual leaves? (Can you endure time loss while a replacement is found?)
“There is no ‘right’ answer but there is a ‘best’ decision depending on the answers to these questions.”
Thanks to everyone who responded to my HARO query — I appreciate you all taking the time to offer your comments and share your insights — and thanks again, HARO: You provide an excellent service.
February 15th, 2009 at 3:08 pm
Great discussion, and timely for us. What if you’re a Township with daily communications needs, especially as you want to move to a more open, transparent, cross-department, citizen-inclusive paradigm? Hiring a firm would certainly help with the startup, but with the desire to post to the web, and maybe Facebook and Twitter at least a couple of times a day, as many govs are starting to do, wouldn’t the hourly rates catch up quickly to, let’s say, a good half-time employee with no benefits?
February 16th, 2009 at 10:04 am
in regard to Mr. Pennington’s position: this is exactly the kind of thinking agencies and freelancers loathe. items are typically done on a “hourly” basis because frankly, most businesses have no earthly clue how to properly manage a project efficiently. Before you know it, the hours are spinning out of control because the business cannot make an internal decision. Multiple meetings, multiple changes, multiple cooks. The agency or freelancer that put up a concrete dollar amount is now LOSING money. Work hourly or prepare finite scope, and ANY changes in scope must be approved in writing by the business before additional work or changes commence. Otherwise, Winning work can put you right out of business.