What Should You Consider When Hiring An IT Consultant?

When you hire an IT consultant, the first thing to consider is what you want their employment status to be. It’s critical to classify them appropriately as employees or independent contractors. The difference is that you have to withhold taxes, pay unemployment tax, Medicare and Social Security for an employee. An independent contractor is expected to pay these costs on their own. Independent contractors often ask for more money to offset these costs.

Toronto IT support professional, Scott Weingust from Sysoft, a local IT company serving the Greater GTA shares this important information when sourcing a new IT consultant.

What Are the Main Differences to Consider?

From a legal perspective, there are three main factors to consider in classifying an employee. They revolve around the degree of control and independence the contractor has and include:

• Behavioral: Does the company control the worker’s tasks and how they do their job?
• Financial: Are the business aspects of the position controlled by the payer?
• Type of Relationship: Is there a written contract and does the employer pay for benefits, such as vacation pay, insurance, pension plan? Is the work performed a key aspect of the business?

What Issues Arise if You Choose to Hire an IT Consultant?

No one factor determines whether the worker is a contractor or an employee. You have to look at the whole picture. Consider how much autonomy the worker will have and use that to help you make a decision. When using an IT staffing agency, co-employment issues can come up. This describes what can happen when two companies have obligations and rights as an employer regarding the same employee. Address any concerns with the staffing agency before signing a contract.

How Can You Protect You Intellectual Property?

Intellectual property is often a concern among companies hiring contractors. The last thing you need is a contractor who doesn’t turn over login information or holds your critical systems hostage. There are several ways to protect your company, including having the contractor sign a non-disclosure agreement. This protects the details of how you do business and any proprietary technology the contractor will gain access to.

You should also include standard language in the contract that states any intellectual property gained during the contract period belongs to the company, even if the consultant “thought of it first.”

What Is the Best Way to Conduct a Thorough Interview?

IT consultants are typically paired to core business systems. The best practice is to interview them as thoroughly as you would any other employee. Call to check up on references and ensure the candidate has the experience you need to get the job done. Explain how the role or project relates to your business so the contractor has a clear idea why what they do is important.

How Can You Learn More About Your IT Consultant’s Methodology?

Get to the core of how the consultant works and how he would handle a likely business scenario. This gives you a good understanding of their likelihood to succeed in the role. For example, if you need someone with a solid grasp of SEO, it’s not a great idea to hire a web developer with no marketing background. If you do, you might end up explaining to the CEO why your site traffic plummets after a misguided set of website changes.

What Should the Contract Look Like?

The contract should cover all the important details. This includes the hours, costs, deliverables, milestones, deadlines and who’s responsible for any outside expenses. If your company uses consultants often, it’s a good idea to have standard language that you pass on to each new consultant. This helps keep everyone on the same page. The scope of the project should be clearly delineated, but you might want to leave wiggle room in the scope of work in case the requirements change and the contract needs to be renegotiated. Ask for a single, main point of contact with the agency for consistency.

When Do Confidentiality Agreements Come Into Play?

Your IT consultant could be working with other clients. It’s important to understand if they are or might be working with your competitors. Even if they aren’t, confidentiality agreements protect your business. A Nondisclosure Agreement should be signed before the consultant gains access to your sensitive information and systems.

What Training Needs to Take Place at the End of the Project?

At the end of the engagement, the IT consultant should provide documentation and training for your regular employees. Get this in writing and ensure that the project estimate has training and knowledge transfer included in the budget.