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Monday, 23 June 2014

Employment v Consultancy Choices

Should I employ a Management Representative to carry out the duties of Quality Manager, Environmental Manager, Information Security Manager or Internal Auditor or should I use the services of an external consultant?

The choice may revolve around cost; employment costs are probably the biggest overhead that any company has to cover and finding the right employee can be both time consuming and expensive.
The alternative, which many companies are using, is to use the services of a specialist consultancy where a consultant is used for a specific task or period of time.

There are a number of advantages in this sort of arrangement; consultants are paid only for the work or time involved, consultants are not 'employed' so do not have paid holidays, sickness, time off for domestic or social reasons, do not require pension or other benefits. There is also no risk that a consultant will become involved in company politics. And as they are not employed, no disciplinary processes and/or extended periods of notice are required to terminate a contract.

The consultant is usually an 'expert' in the chosen field and will often have a greater depth of experience than the equivalent employee.  The consultant will have up-to-date information.

Select a consultancy that is covered by the rules of a governing body such as the Institute of Consulting and is covered by appropriate Business Indemnity Insurance. Ask for details of previous assignments to assess how effective the proposed consultant has been in the past.

Employment or External Consultant, the choice is yours, consider:
  • Employment Costs
  • On costs
  • Expertise   
  • Previous knowledge of similar organisations
  • Time scales
  • Ease of termination

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