checks come in like clock work every month. Life is good. For the consultant. Not necessarily for your company.

If a firm requires long-term assistance, they should think about hiring an employee with that talent. The expense is almost sure to be less that a consultant’s retainer. But there’s that budget problem, right? Got to keep visible payroll costs down? Consultant retainers don’t show up as a payroll expense.

Want to cut your consulting expenses? Try this: Instead of ag

Think about it. You seek them out to provide some knowledge, skill or experience your company doesn’t have. And, in the process of providing that help, they learn more about your business than even some on your management team know. Then, in return for you laying your corporate soul bare – sharing information about processes, customer files, financials, etc. – some consultants also attempt to pick your pocket.

I am a consultant. Have been for a good many years. I’m neither rich nor famous. Not likely to be. Never really wanted to be. But that was a choice I made long ago. Since then I’ve seen a good number of consultants – male and female, individuals and corporations – achieve fame, fortune, or both. It’s not envy that prompts me to write what follows. It’s disgust.

What I find disgusting is how little some consultants value their professional relationships with clients. How much more they value the dollar.

Let’s look first at the relationship. Nothing says it can’t be pleasant, cordial, perhaps even friendly. But it is first and foremost a business relationship, a professional relationship, one that should be rooted in confidentiality. Any company hiring a consultant should insist – before any business is ever discussed – that both parties sign a Mutual Confidentiality Agreement.

Do you want people outside your company to know your firm’s inner most workings? Without an MCA you have no assurance of confidentiality

By signing an MCA, the consultant agrees not to discuss your business – perhaps even mention your company’s name, if the MCA is drawn that tightly – with any third-party without your both agreeing that third-party has a need to know. Those third-parties typically include printers, mailers and the like.

Now let’s look at the dollars. Consultants absolutely love working on retainer. Why not? It’s guaranteed income. Put enough retainer arrangements together and there’s good money to be made. The checks come in like clock work every month. Life is good. For the consultant. Not necessarily for your company.

If a firm requires long-term assistance, they should think about hiring an employee with that talent. The expense is almost sure to be less that a consultant’s retainer. But there’s that budget problem, right? Got to keep visible payroll costs down? Consultant retainers don’t show up as a payroll expense.

Want to cut your consulting expenses? Try this: Instead of ag

amous. Not likely to be. Never really wanted to be. But that was a choice I made long ago. Since then I’ve seen a good number of consultants – male and female, individuals and corporations – achieve fame, fortune, or both. It’s not envy that prompts me to write what follows. It’s disgust.

What I find disgusting is how little some consultants value their professional relationships with clients. How much more they value the dollar.

Let’s look first at the relationship. Nothing says it can’t be pleasant, cordial, perhaps even friendly. But it is first and foremost a business relationship, a professional relationship, one that should be rooted in confidentiality. Any company hiring a consultant should insist – before any business is ever discussed – that both parties sign a Mutual Confidentiality Agreement.

Do you want people outside your company to know your firm’s inner most workings? Without an MCA you have no assurance of confidentiality

By signing an MCA, the consultant agrees not to discuss your business – perhaps even mention your company’s name, if the MCA is drawn that tightly – with any third-party without your both agreeing that third-party has a need to know. Those third-parties typically include printers, mailers and the like.

Now let’s look at the dollars. Consultants absolutely love working on retainer. Why not? It’s guaranteed income. Put enough retainer arrangements together and there’s good money to be made. The checks come in like clock work every month. Life is good. For the consultant. Not necessarily for your company.

If a firm requires long-term assistance, they should think about hiring an employee with that talent. The expense is almost sure to be less that a consultant’s retainer. But there’s that budget problem, right? Got to keep visible payroll costs down? Consultant retainers don’t show up as a payroll expense.

Want to cut your consulting expenses? Try this: Instead of ag

says it can’t be pleasant, cordial, perhaps even friendly. But it is first and foremost a business relationship, a professional relationship, one that should be rooted in confidentiality. Any company hiring a consultant should insist – before any business is ever discussed – that both parties sign a Mutual Confidentiality Agreement.

Do you want people outside your company to know your firm’s inner most workings? Without an MCA you have no assurance of confidentiality

By signing an MCA, the consultant agrees not to discuss your business – perhaps even mention your company’s name, if the MCA is drawn that tightly – with any third-party without your both agreeing that third-party has a need to know. Those third-parties typically include printers, mailers and the like.

Now let’s look at the dollars. Consultants absolutely love working on retainer. Why not? It’s guaranteed income. Put enough retainer arrangements together and there’s good money to be made. The checks come in like clock work every month. Life is good. For the consultant. Not necessarily for your company.

If a firm requires long-term assistance, they should think about hiring an employee with that talent. The expense is almost sure to be less that a consultant’s retainer. But there’s that budget problem, right? Got to keep visible payroll costs down? Consultant retainers don’t show up as a payroll expense.

Want to cut your consulting expenses? Try this: Instead of ag

an MCA, the consultant agrees not to discuss your business – perhaps even mention your company’s name, if the MCA is drawn that tightly – with any third-party without your both agreeing that third-party has a need to know. Those third-parties typically include printers, mailers and the like.

Now let’s look at the dollars. Consultants absolutely love working on retainer. Why not? It’s guaranteed income. Put enough retainer arrangements together and there’s good money to be made. The checks come in like clock work every month. Life is good. For the consultant. Not necessarily for your company.

If a firm requires long-term assistance, they should think about hiring an employee with that talent. The expense is almost sure to be less that a consultant’s retainer. But there’s that budget problem, right? Got to keep visible payroll costs down? Consultant retainers don’t show up as a payroll expense.

Want to cut your consulting expenses? Try this: Instead of ag

checks come in like clock work every month. Life is good. For the consultant. Not necessarily for your company.

If a firm requires long-term assistance, they should think about hiring an employee with that talent. The expense is almost sure to be less that a consultant’s retainer. But there’s that budget problem, right? Got to keep visible payroll costs down? Consultant retainers don’t show up as a payroll expense.

Want to cut your consulting expenses? Try this: Instead of agreeing to retainer arrangements – you pay them so much a month in return for which they promise you X hours of their time – hire consultants to work on individual projects. That means you pay for work done, not time “promised” to you.

The are a number of other good points about hiring project consultants. You know up front just what each project will cost because they commit to it. You also know when the project will be completed. Again, because they commit to it.

Put price, terms and other details of each project in writing. Your corporate attorney can easily include those details in something called a “Project Scope” that becomes part of the MCA signed earlier by you and the consultant. But however you and your attorney choose to do it, always require consultants to sign your Mutual Confidentiality Agreement.