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Results Based Pay for Consultants

posted May 1, 2017, 2:13 AM by Andrew
Why should I pay for a consultant a CEO may say? Good question. Ideally you only want to pay a consultant for a definite and significant benefit that you have received from him. The more measurable the outcomes of the consultant’s work the better. Then you know that you are paying for results and not thin air. The question is how do you measure results? Further, what should you measure?

It might be relatively easy to measure results in a sales context. You can say to the consultant that you will pay £x if he increases sales by a certain percentage within a certain timeframe.

But what about something like a project to improve the workplace culture to get people working together more effectively? This sounds like one of those jobs with an uncertain outcome and potentially high cost.

In these circumstances you need to know what to measure and how to measure it. You’ll also need to measure how things are before the consultant undertakes the work, and how things are afterwards to see if there has been an improvement.

You can then pay the consultant based on how much difference he has made to your organisation. If there’s no difference, and you only pay based on performance, you pay nothing.