Six Steps to Successfully Hosting Independent Contractors
by Marilee Crocker
Photo: Shutterstock.com
It has long been common for traditional travel agencies, both large and small, to host at least a few outside travel agents or independent contractors (ICs) who are not on the agency’s payroll. Agencies, including home-based solo entrepreneurs, have myriad reasons for hosting independents, and while many have well-established hosting programs, others are new to the territory or still struggling to make hosting work.
Here’s advice from experienced agency owners on how to host outside agents successfully and avoid the pitfalls.
1. Know who you’re bringing on
Perhaps the most critical piece of advice is this: screen independent agents carefully. “It’s important to know who you’re bringing into your organization,” said Connie Corbett, president of Ambassador Travel in Evansville, Indiana. “If they are local, get to know them face-to-face. If they’re outside your area, get to know them as best you can, so you feel like you’re dealing with someone reliable. It is a business relationship.”
Keep in mind that how your independent agents represent themselves to travelers and to other industry members will reflect back on your agency. Sandy Anderson takes pains to ensure that the independents she hosts will operate in a way that is consistent with her business ethics.
“You can’t control independent contractors, but you can control who you sign on. It’s real important to have people that are professional,” said Anderson, owner of Riverdale Travel in Minneapolis and Coon Rapids, Minnesota.
Anderson said that while she will talk to potential independents who call her cold, “we generally want people who we are familiar with.” If she doesn’t know a potential outside agent well, Anderson conducts background checks on them, a precaution that legal experts also recommend. “We check to see if they have any judgements against them, if they have a felony, that type of thing.” Asking for and checking references is also a good idea.
2. Make sure it’s a good fit
Michael Schrobat is a home-based agent in Portland, Oregon, who has a small hosting program. “I look for agents who are like-minded – same philosophy, same values, same level of client service. They don’t need to have experience, but they have to understand our philosophy,” said Schrobat, whose agency is CETC Travel Services.
Schrobat is particularly interested in independent agents and new entrants who sell or want to sell specific niches. When he speaks with would-be outside agents, he’s also keeping an eye out for those who have a solid business ethic. “The people who are doing well have been entrepreneurs, so they’re bringing a good business skill set and the business ethics that you need in this business.”
Anderson said she looks for outside agents who want to work with a boutique host and be part of a team. “Some people who work from their homes don’t care about community. I appeal more to someone that wants to feel a part of something,” Anderson said.
Yolanda Meador, president and founder of You Deserve It Vacations in Irving, Texas, said the key quality that she’s looking for in potential outside agents is that they have a strong drive. “You’ve got to find people who are hungry. If I sit down with you and the first thing you say is, ‘I want to travel,’ nope.”
3. Invest time in training and be patient
Especially if you’re hosting inexperienced agents or industry newcomers, be prepared to dedicate time to training, mentoring and handholding. “If an agency wants to be a host, they must be dedicated to training and to passing on their education and knowledge. If they’re just looking for their 20 percent commission, they should reconsider,” Schrobat said.
Hosting new entrants requires “patience times a thousand,” he added. “Spend time with them and understand that no question is too stupid.”
By the same token, host agents should advise new entrant independents that they should be prepared to put in time and effort. “You have to put in the work. It is not a glamour job overnight. They really have to be dedicated,” Anderson said.
4. Communicate with your ICs often, and in diverse ways
“Whether we’re training on destinations, new things in the industry or travel requirements, or just being available if someone needs assistance, keeping that line of communication open is important,” Corbett said.
Because her independent agents have different schedules and communication styles, Corbett and her team stay in touch in a range of ways. “We schedule some of our own time for questions and answers on weekends. Occasionally we will schedule an evening meeting. We do some webinars.”
Some ICs are not local, so virtual communication is important.” Still, she said, whenever possible, “face-to-face is better than telephone, and phone is better than email, and email is better than text.”
Corbett also recommends creating a central point of contact within the host agency for independents, “so they feel like if there is a question or concern or they need help, they know where to turn.”
5. Be supportive and engaging
Schrobat said he sees his relationships with his seven independents, all of whom are new to travel, as a partnership where individual success and agency success are mutually dependent. “I tell them, ‘Let’s make it work together. I’m here to help.’”
Corbett looks to engage and inspire her independents. “From the agency perspective, to gain the most value from an IC program, it’s very important to be interactive. Communicating well, inspiring and engaging and enticing the independent to further their career is important to success for everybody.”
To keep her independents enthused, Anderson makes sure they are invited to agency and industry events, included on invitation lists for fam trips, and generally “included in our community.”
Anderson also takes pains to ensure that her 14 employees are fully supportive of the agency’s outside salespeople. “I try to create an environment where if an independent contractor has a question, we stop everything and help them, because they’re part of the success of our business. I’ve got 14 agents that are experts; if an independent has a question, they’ve got a whole team that works with them.”
6. Learn the legalities
By definition, outside agents are not employees and cannot be treated as such; they are independent contractors in business for themselves. “You can’t tell them what to do or when to do it. You can only guide them,” Schrobat cautioned.
That’s just one aspect of the federal and state laws and regulations governing relationships with independent contractors that agencies who get into hosting need to learn and observe. As Anderson advised, “You have to be aware of all the nuances.”
In a similar vein, travel industry legal experts strongly recommend creating a detailed written contract that spells out the terms of your agreement with your independent contractors.
If you’re new to hosting or looking to upgrade or formalize your existing program, a good place to start is by consulting ASTA and your consortium, as well as legal experts.
