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Here is a list of essential questions you need to answer in order to determine whether any member of your organization is an employee or an independent contractor.

1. Does the employer control, or have the right to control, what the worker does and how the work is to be performed?

Generally speaking, the more control that management exerts over the worker's activities, the more likely it is that the worker is an employee. An employee is generally subject to the employer's instructions about when and where to work, and how the work is to be done.

The more detailed the instructions, the more control the employer exercises over the worker (such as what tools and equipment to use, what work must be performed during a shift, what order or sequence to perform tasks, where to order supplies, etc). More detailed instructions indicate that the worker is an employee. Less detailed instructions generally reflect less control, indicating that the worker is more likely an independent contractor.

2. Does the business train the worker?

If the business provides the worker with training on how to do the job, this demonstrates that the business wants the job done in a particular way, and again indicates a degree of control. This is strong evidence that the worker is an employee. Periodic or on-going training about procedures and methods is even stronger evidence of an employer-employee relationship. Independent contractors ordinarily use their own methods.

3. Do you require the worker to perform the work personally?

If the worker is required to perform the work personally, this implies a measure of control over how the work is performed; thus, the worker is an employee. A true independent contractor could assign the work to someone else.

4. Do you hire assistants for the worker?

Hiring assistants for your worker implies control over such assistants and an employment status. An independent contractor would be more likely to hire their own assistants.

5. Do you have an ongoing relationship with the worker?

Even if the work is performed at irregular intervals, the fact that you use the worker's services over a long period of time would tend to indicate employment status. If you hire a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent of both parties was to create an employer-employee relationship.

6. Do you require that the worker work exclusively for your business?

A worker who is engaged only by your company is generally considered an employee. By contrast, a worker who performs work for many clients would likely be deemed an independent contractor. If the worker is required to devote his/her full time to your business, this indicates a high degree of control by the employer. This situation keeps the worker from doing other gainful work.

An independent contractor is generally free to seek out other business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work for other companies in the relevant market.

7. How is the worker paid?

An employee is generally guaranteed a regular wage – hourly, weekly, monthly, or otherwise. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid a flat fee for the job. This fee may be paid in regular installments over the life of the project, a typical arrangement in an independent contractor relationship. However, it is common in some professions, such as law, to pay independent contractors hourly.

8. Does the employer pay the worker’s business or travel expenses?

Reimbursement of business or travel expenses implies a degree of control, and indicates employee status. Independent contractors are more likely to pay their own expenses than employees are. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur un-reimbursed expenses in connection with the services that they perform for their business.

9. Has the worker made a significant investment in tools, equipment or facilities?

If the worker uses your tools, equipment and facilities, this implies an employer-employee relationship. An independent contractor often has a significant investment in equipment, tools and materials he/she uses in working for someone else.

If the worker has their own business location (such as an office) from which they perform the work, that is a strong indicator that they are an independent contractor. However, in many occupations, such as construction, workers have significant investment in the tools and equipment they use and are still considered to be employees. A significant investment is not a required factor for independent contractor status, as some types of work do not require large expenditures.

10. Does the worker incur a risk of loss from the results of the services rendered?

The opportunity for profit or risk of loss is an important factor in determining independent contractor status. If a worker does not incur the risk of loss normally associated with running a business, this implies that he/she is an employee. If a worker has a significant investment in the tools and equipment used and if the worker has unreimbursed expenses, the worker is at greater risk to lose money, which would indicate that the worker is an independent contractor.

11. Do you have a written contract with the worker?

Although a written contract may state that the worker is an employee or an independent contractor, this is not sufficient in and of itself to determine the worker’s status. Rather, it is how the parties work together that determines whether the worker is an employee or an independent contractor.

12. Do you have the right to fire the worker?

An employee's employment can be terminated at any time for specified reasons. An independent contractor cannot be terminated as long as they are meeting their performance obligations under their contract.

13. Can the worker quit at any time without liability?

If the worker has the right to give notice and quit working for you without assuming any liability for doing so, this indicates that he/she is an employee. By contrast, an independent contractor would incur liability and risk a possible lawsuit for breach of contract, unless the reasons for termination are in accordance with the terms of the contract.

14. Is the worker's performance evaluated?

If the worker's performance is evaluated by management, then this would point to employee status. If the evaluation system measures just the end result of the work, then this can point to either an independent contractor or an employee.

15. Are employee benefits available to the worker?

Employee benefits include pension plans, paid vacation, sick days, disability insurance, stock options, medical and dental insurance. Businesses generally do not grant these benefits to independent contractors. However, the non-availability of employee benefits does not automatically mean that the worker is an independent contractor.

16. Are the worker's services considered key to the business?

If a worker provides services that are a key aspect of the business, it is more likely that the business will have the right to direct and control his or her activities, which would indicate an employer-employee relationship. If the worker performs services that anyone could perform, independent contractor status is more likely.

CONCLUSION

There is no magic formula for establishing an employment relationship. All factors must be considered and taken together. Remember, too, that factors which may be relevant in one situation may not apply in another. Review the entire relationship, consider the degree or extent of the company's right to direct and control the worker, and document each of the factors used in making your determination.

MegaDox.com offers a variety of customizable template Independent Contractor Forms, including agreements, checklists, service contracts, proposals, and invoices.

Hiring for nonprofits is not the same as hiring staff for a profit corporation. For one thing, you'll be working with substantially less money in your personnel budget than a private company of comparable size would have available.

Every business needs a mission statement, to serve as a blueprint for business planning and decision-making. A mission statement that clearly states the business' purpose and goals will inspire your people to pull together as a team to accomplish that purpose, and will give management and stakeholders a means of measuring its success.

To answer my own question, not dead yet (nod to Monty Python). But it's definitely ailing.

It seems like most of the service sectors could use a refresher course in courtesy. Remember back in the day when you would pull into a service station (keyword "service"), and a smiling attendant would come out, pump your gas, check your oil and even wash your windows? And when you paid for the gas, you might even get a free air freshener for your car! (If you're under 40, all of this will sound like some impossible Pleasantville fantasy.) Today you drive up to the self-serve gas bar, pump your own gas, clean your own windows (if you can find a squeegee), check your oil (or decide to skip it because you'll get your hands dirty and you're on your way to work), and pay by credit or debit card at the pump, thereby avoiding all human contact. Faster? Decidedly. More enjoyable? Get real. Smiling? Not.

Convenience isn't everything.

We all realize that we save money by doing it ourselves - whether it's pumping gas or bagging our groceries. Nobody is against saving money if it means skipping a few little amenities. But the whole concept of "Service" seems to have gone out the window along with those little amenities. And as a side effect of convenience, we're robbing millions of high school kids of potential after-school jobs at the gas station or the grocery store. So whatever cash we save on gas and groceries, we end up having to pay out for our kids' gas and cell phone bills.

What exactly is "customer service"?

The term "customer service" is made up of two words that naturally go together. Customer Service is defined as "an organization's ability to supply their customers' wants and needs." The definition of a customer is someone who purchases goods or services (that word again).

Whether our business is located in a brick and mortar building, online, or a combination of both, when we serve a customer we are promoting our brand. The way in which we serve that customer will shape how they perceive our business and will determine not just whether or not the customer will return, but also what they will have to say about us to family, friends and colleagues.

Customer satisfaction is essential!

Every business owner knows that a business survives solely on the goodwill of its customers. No matter how deep the pockets of your investors are, no matter how flashy and cool and sexy your products are - if your customers leave your store feeling unsatisfied or unhappy, your business is doomed.

Bad  word-of-mouth gets around pretty quickly these days via X, Youtube videos, Google Reviews and other customer complaint / review websites. This morning's bad customer experience can become this afternoon's trending topic on X. Your marketing fail could soon be plastered all over the Internet for all to see, and your brand can be dragged through the virtual mud.

For a business that relies on local visitors - such as a restaurant -  this is the kiss of doom. You now will have to look at spending a lot of time, effort and cash cleaning up the PR mess and hoping people will forgive and forget. Or you could just take steps to avoid it in the first place.

How to level up your customers' satisfaction level.

Let's go back to that definition of customer service and the part about "supplying a customer's wants and needs." How can we know what they want and need? Well, you can get a clue as to what they NEED by the fact that they've come to your shop or website.

If you sell cars, chances are they're not shopping for window blinds. So you have your first clue - now you narrow the field by asking them what they're looking for, then leading them to the items that fit that description. Narrow the field more by determining the price range, color, size, and other factors that will ultimately affect their decision to purchase.

We've dealt with what the NEED. But what do they really WANT? That part is pretty easy. They want what YOU want - to be dealt with respectfully and fairly, and to be treated as a person. An important person. Someone whose opinion matters. Someone whose time is as valuable as yours.

Personal Example #1: Lousy customer service.

I'm going to share an incident that happened to me not long ago. I went to the Customer Service counter in Real Canadian Superstore to ask a question. There were three people behind the counter who were obviously enjoying themselves, joking and giggling together. Unfortunately there were also three of us customers standing on the OTHER side of the counter waiting, and waiting, and waiting, while they had their little laugh fest, and we were not amused. After a couple of minutes of wasting my valuable time, I gave up and left.

Now to be fair, I've had positive experiences with Superstore's customer service people on other occasions. But THIS one stands out in my mind. Do I still shop there? Yes, but only because they have a big gluten-free section and their prices are better than the competitors. (Celiac disease sometimes means compromise.) But just because I want to save money doesn't mean I want to cease being treated like a human being.

Every business, no matter the size and no matter the clientele, must train their staff to be prompt, courteous and respectful. Don't waste our time.

Personal Example #2: Great customer service!

Now let's take an example from the other side of the aisle. I stopped at Tim Horton's one morning to fill up my travel mug with Tim's Dark Roast. The lady behind the counter got my coffee for me and then asked me if I was right- or left-handed. Why? Well, so she could put the lid back on my travel mug with the drinking spout on the appropriate side. Now THAT is great customer service.

One last tip for client-facing staff.

Remember to SMILE! If you don't enjoy your work, then you should go work somewhere else. Don't take it out on your customers. We didn't hire you - we're just standing in line waiting to be served.

You may be asking, "How do you do all this if your business is online? How can I strike up a meaningful relationship with people I've never met?" Well, people chat with customers on social media every day. "Prompt, courteous and respectful" still apply. Using the words "Thank you" liberally in your emails, post-checkout pages, and contact pages will make your customers feel appreciated.

And yes, you can SMILE with your telephone voice and with the words you use on social media!

Make customer service part of your everyday life.

Let's keep Customer Service alive and well by practicing it every day in our own businesses, and by reinforcing it in others whenever we encounter it in our lives. If a support person or salesperson meets or exceeds your expectations, let them know - and let their supervisors know too. Recognition is like a pat on the back - it encourages people to strive to do their best at all times. If your employees are doing their best for your customers, word will get around and your business will be all the better for it.

Image by Tumisu from Pixabay