Hire Flexibility : Independents Worth the Price
Keystone Marketing Specialists owner Karen Settle built her business by relying heavily on independent contractors in addition to a small number of employees. She learned that contractors are generally more mature, committed and crave flexibility and autonomy--all traits that help her compete in the cyclical retailing industry. Settle was interviewed by Karen Kaplan.
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We set up computer, hardware and software displays inside retail stores like CompUSA and Best Buy. Our clients hire us to do demonstrations to explain their products to shoppers and to salespeople.
Retail is an on/off kind of business. I knew I’d have a project that would last for three weeks and then I might not know where the next project was coming from. I didn’t want to hire people and then have to lay them off three weeks later. I don’t think that’s good for morale.
I envisioned a work force that had a high level of expertise and already knew the computer business. I wanted people who are autonomous and wanted to work flexible hours. That’s why I wanted to use independent contractors.
Some of the independent contractors were victims of downsizing and some of them just wanted to earn some extra money on the weekends. Some of them are moms who don’t want to work full time. We have people who own their own consulting companies and take on projects when they have downtime.
This arrangement allows me to attract a higher caliber of people. The level of commitment and responsibility from independent contractors is higher than what I’ve ever seen from employees. I think it’s because they know they really own themselves.
Some of them want to work for me for eight hours a week and some of them want to work for 30. There are probably close to 200 people in the U.S. and Canada that we cycle through, and probably 150 of them are working on Keystone projects in any given month.
It’s not cheaper to have independent contractors. The hourly rate that I pay them is higher than what I would pay if they were employees. Part of the reason I do that is to attract a good, strong group. I also pay them more than employees because I know they have to cover their own taxes and benefits.
My support staff, however, is made up of employees. The work that the office people do is so tightly controlled and managed that I think they really need to be employees. I need people who are there eight hours a day and I tell them exactly what to do.
It’s harder to get employees to share that ownership feeling that independent contractors have. I give them bonuses when they work on big projects that are successful.
I think this kind of arrangement would work for anyone. People like this style of work, and we’ll start to see more and more of it. As outsourcing grows, I think companies like ours will fill the needs of businesses by using this very seasoned work force, which was created by downsizing in the first place.
* For more small-business information, visit The Times Web site. Go to: https://www.latimes.com/HOME/BUSINESS/SMALLBIZ/
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AT A GLANCE
Owner: Karen Settle
Nature of business: Field marketing for computers and consumer electronics
Location: North Hollywood
Year founded: 1993
Number of employees: 10
Annual sales: $5 million
