1099's in the House

Enterprise by Design (Part 5)

It’s a vendor, it’s a customer – no, it is an independent contractor.  Independent contractors, 1099’s, are a significant part of the American workforce.  There are certainly 1099 vendor only contractors but these are easier to work with and defined.  The 1099’s that impact operations and relationships in an enterprise are those that blur the definition with activities and characteristics as both a customer and a vendor. 

The opportunity and challenge is in knowing which hat each party is wearing at the point where money is a part of the conversation.  This is particularly true in companies that use independent contractors as their primary staffing of projects and sales organizations where the sales are not necessarily company driven.

Consulting companies, particularly IT services companies, frequently employ 1099’s to bring specific expertise to client projects.  This use makes sense as hiring a permanent employee for a limited time project would not be a good decision. It allows the company to meet demand without having high overhead.  It also means that resources are not necessarily instantly available when you need them.

Real estate companies, due to licensing laws have a special arrangement with independent contractors that aligns the 1099 with the company closer and for longer terms than the 1099 who is basically a freelancer. A real estate agent, associate broker who affiliates with a broker is differentiated from staff first by compensation.

Particularly in situations similar to the consulting 1099’s and real estate licensee 1099’s, the enterprise needs to see them and provide interaction to meet the needs of both customer and vendor relationships.

They are a customer in that they need tools, services, expertise, management and resources of the company and purchase these with either a fee or a portion of earnings.   They are a vendor in that they have tools, services, expertise and in some cases, either relationships or inventory that the company will leverage and profile as its own through the affiliation buying these at a negotiated rate, contingent fee, or fee for service.

So where do the challenges occur?  Recruiting is a great example in both consulting companies and US real estate companies.

It seems that the pursuit of the independent contractor due to either need or competitive pressures often seems to have what the company is offering of value fade to the background.  The independent contractor feels the power that is driven by the passion of the company’s pursuit and the balance that should be the value received by both vendor and customer, in the negotiation is lost.  It is almost as if these companies come in with wallet open saying what do you want and what will it take to get you? 

Most recruiters in the pursuit not only abdicate negotiating position but also set in motion an expectation that will continue throughout the tenure of the relationship and into any subsequent negotiation.  It is often the beginning of a management nightmare.   A lot of this occurs because the recruiter is compensated on immediate recruiting results rather than good judgment, quality or alignment with the long term needs of the company.

The impact to an enterprise is even more significant than a company that has only one core business.   The value and opportunities that could be leveraged across the enterprise have not been a part of the value proposition in the beginning and will be difficult to engage without significant work, probable negotiation and competition of outside relationships that the 1099 may have had prior to affiliation or contracting to a project.

It is both a customer and a vendor relationship that should be defined by value given and received.  The 1099 strategy for staffing is a great option but one that needs a business focus from the beginning. 

Perhaps in negotiations some of the lyrics from either the Black Eyed Peas song called “House” or LMAO, Steve Aoki song – “I’m in the House” should resonate in the owner and recruiter’s heads.


oakleyses said...

ugg boots, oakley sunglasses, replica watches, ugg boots, nike air max, cheap oakley sunglasses, nike free, michael kors outlet, polo ralph lauren outlet, longchamp outlet, jordan shoes, longchamp, ray ban sunglasses, michael kors outlet, prada handbags, ugg boots, oakley sunglasses, chanel handbags, uggs on sale, oakley sunglasses, polo ralph lauren outlet, christian louboutin outlet, ray ban sunglasses, burberry outlet online, michael kors outlet, louboutin outlet, ugg boots, louboutin shoes, michael kors outlet, louis vuitton, nike air max, ray ban sunglasses, prada outlet, louis vuitton, louboutin, oakley sunglasses, tiffany jewelry, louis vuitton outlet, burberry, kate spade outlet, louis vuitton outlet, nike outlet, tory burch outlet

oakleyses said...

michael kors, oakley pas cher, kate spade handbags, ralph lauren uk, ralph lauren pas cher, north face, michael kors, michael kors, burberry, hogan, hollister pas cher, nike roshe, sac guess, ray ban pas cher, ray ban uk, coach outlet, true religion outlet, air force, coach purses, nike roshe run, lululemon, coach factory outlet, coach outlet, timberland, true religion jeans, vanessa bruno, nike blazer, nike free, nike air max, hollister, new balance pas cher, vans pas cher, nike free run uk, nike air max, lacoste pas cher, louboutin pas cher, air jordan pas cher, michael kors, sac longchamp, north face, true religion jeans, abercrombie and fitch, tn pas cher, air max, longchamp pas cher, true religion jeans, converse pas cher, mulberry, hermes, nike air max

oakleyses said...

pandora charms, ugg,ugg australia,ugg italia, moncler, ugg pas cher, moncler outlet, vans, thomas sabo, canada goose, barbour, bottes ugg, louis vuitton, moncler, karen millen, hollister, marc jacobs, wedding dresses, canada goose outlet, moncler, pandora charms, ray ban, louis vuitton, montre pas cher, canada goose, supra shoes, louis vuitton, barbour jackets, ugg boots uk, toms shoes, moncler, converse outlet, moncler, juicy couture outlet, pandora jewelry, sac louis vuitton pas cher, doudoune canada goose, converse, replica watches, nike air max, lancel, canada goose, coach outlet, pandora jewelry, juicy couture outlet, moncler, doke gabbana outlet, ugg,uggs,uggs canada, canada goose outlet, links of london, canada goose, gucci, moncler

Unknown said...

Coach Outlet
Cheap Coach Outlet
Oakley Outlet Online
michael kors outlet online
Oakeyley Sunglasses Wholesale
true religion outlet store
Oakley Sunglasses
Cheap Oakley Sunglasses
fitflops sale
michael kors outlet online
cheap oakleys
Oakley Outlet Stores
Coach Outlet Factory
oakley sunglasses
Louis Vuitton Handbags
fitflop sandals
Oakley Sunglasses
ray ban sunglasses
michael kors outlet
toms outlet store
Jordans For Cheap
true religion jeans
Michael Kors Purse
Cheap Uggs
Oakley Store
Michael Kors Handbags
Michael Kors Bags
Cheap Air Jordan
Cheap Oakley Sunglasses
cheap oakley sunglasses

chenlina said...

michael kors handbags
coach factory outlet
michael kors uk
louis vuitton
air max 95
toms shoes
mont blanc legend
kobe 9
coach factory outlet
cheap air max
gucci outlet
uggs outlet
polo ralph lauren
michaek kors outlet
louis vuitton handbags
louis vuitton
gucci shoes
canada goose jackets
jordan retro 11
christian louboutin
ugg outlet
ray ban sunglasses outlet
michael kors outlet
marc jacobs handbags
michael kors outlet
ray ban sunglasses outlet
longchamp outlet
ugg boots
hollister co
louboutin pas cher
pandora outlet
canada goose outlet
uggs outlet
ugg boots
swarovski outlet
canada goose outlet
abercrombie kids
ray bans

Unknown said...

Donna Adidas Ultra Boost Scarpe Flash Rosa
Cheap Moncler Jackets
zapatillas nike air max 95
New Nike Free Run Shoes
pas cher nike air max thea
Chaussures nike roshe run
New Balance 574 Shoes
Adidas Zx 700 Bordeaux
buy cheap oakley sunglasses online, 2016 Cheap Oakleys Outlet Online For Sale, Where can i buy cheapest Oakley sunglasses online
adidas zx 750 schuhe
Nike Pegasus Donna Scarpe Foot Locker
Cheap Lebron 13 Shoes
Raf Simons x adidas Stan Smith
zapatos ugg australia
Nike Air Pegasus Schuhe
chaussures wmns nike free fn 5.0
Chaussures Nike Air Max 90 Pas Cher
Nike Kobe 11 Elite Low
Adidas Originals superstar 2 II leather trainers white G17068
New Adidas Ultra Boost