Staffing Tip: Stop paying by the hour
Today I have a staffing tip. Let’s dive in!
??Staffing Tip: Stop paying by the hour
Procrastination is a part of life. I know, at some point in time, everyone has pushed something to the last minute and was surprised they were actually able to get it done.
This is due to Parkinson’s Law, which states that "Work expands to fill the time available for its completion."
Whether you knew what Parkinson’s Law was before reading this, I know you’ve experienced it in one way or another. So why do we continue to charge based on hourly rates?
Here’s a scenario:
After taking over IPPC, we had contract team members that had to log hours. Regardless of the work being done during that period, they somehow always managed to log 40-44 hour mark.
So regardless of workload, I was paying for 40+ hours of work PLUS distracting the team by having to log hours and send an invoice. That’s when I decided to completely move away from contract employees and bring everyone on as a salaried team member.
The results have been amazing. We get more done, have more team member buy-in, and waste less time.
So if you’re still paying by the hour, you might want to consider either paying by the project if using a freelancer or making them as a salaried employee. I guarantee you’ll get more done and save more time if you make this change to your agency.
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