Employer’s guide to boost productivity
We hear about it every day - “Times are tough” - yes, we are operating in a difficult market, but businesses who take a
proactive approach can make the most of the situation. To assist pragmatic employers, a brand new HR report has been
released that provides a “How-to Guide” for finding, hiring and managing professional contractors in New Zealand to
maintain productivity.
The report comes as a timely arrival for many employers who are considering executive leasing, in other words using
contractors, through these challenging times. The flexible cost structure of contracting appeals to business managers,
because it means they’re not locked into long-term financial commitments. And in the current volatile market, these
commitments can prove to be a real headache when profitability comes under pressure.
“It is time to start thinking outside of the square” says Tony Wai – Managing Director of Crackerjacks, the company that
has released the report. Along side his role with Crackerjacks, Tony provides management consulting to SME’s and has
seen the need to implement a resource for businesses that provides practical advice to maintain profitability, even in a
difficult market.
This “How-to Guide” is the first of a series of HR reports that’ll be available for proactive employers to get creative
with their HR strategies to minimise the effect of the recession.
Wai explains that the paper addresses a number of questions managers raise when considering using professional
contractors. The key sections in the paper include; current rate expectations of contractors in NZ, technical
differences between contractors and employees, a handy formula for converting a permanent salary into a contractor’s
hourly rate and tips for managing on-site contractors.
Interestingly so, the paper highlights the current rate expectations of professional contractors in NZ. Often HR
Managers and employers are in the dark about the actual hourly rate of a contractor when they go through an agency, as
the margin is included in their rate. But in this report there are no margins included – so employers can see the true
cost of securing a contractor directly. Key findings include; IT technical specialists charge out at $65 per hour, HR
Managers expect $70 per hour and an experienced Accountant (non-manager) expects $37 per hour.
Crackerjacks – the organisation that created this report, is an online HR tool that houses a database of professional
contractors. They have the ability to track rate expectations of contractors, so in-time will be able to show
fluctuations of the expected rates amongst various professions. Their candidate database has grown from 1,000
professionals in December last year to the current count of 2,388 professionals. There is no doubt the current
employment market has fuelled this dramatic growth.
It comes as no surprise permanent staff turnover has increased, in fact according to the RCSA, this figure peaked in
February 2009 at 50% PA in New Zealand. There now are a significant number of candidates circulating in the employment
market, and many of which are skilled professionals who’re now experimenting with contracting to get through this
difficult period.
But with the recent events of prominent global credit agency - Standard and Poor’s reassessing our rating from a
negative out-look to a stable footing and hiring expectations of NZ employers increasing from the last quarter, things
are starting to look a bit brighter for our economy.
Along with this rise of optimism, productivity is following, however, the big question remains - what will the future
hold? Many employers are scratching their heads wondering whether it is time to re-hire permanent employees or hold off
growth plans for another 12 months, when we could be well ‘clear’ of the recession.
In this situation contracting offers Managers a timely solution – they can reach the next level of growth, without
committing to long term fixed costs. Crackerjacks, a specialist tool in the professional contracting space has seen the
need for a resource that assists ‘newbie’ managers to the arena of hiring professional contractors.
For more information on this HR Report visit http://bizpromo.crackerjacks.co.nz to download a free copy.
ENDS