What Is a Free Agent?

The latest trend in staffing is to hire a very special contractor, the free agent. This term refers to managers who, rather than staying with one company for their entire careers, lease out their management skills to clients such as your company. Typically, a free agent's fee arrangement is a combination of cash and stock options. Most often, these managers have expertise in strategic planning, marketing planning, business development, and product development.

There are several advantages to working with free agents:

• Because free agents are willing to take part of their compensation in stock options, your company can preserve its cash.

  
  

• Your company can often get deep experience when it needs it most, which means that you don't have to wait and screen candidates to find the ideal employee.

  
  

• Your company can "try before you buy." Many free agents will convert to full-time employees if they find the right match.

Free agents should not be confused with venture catalysts, managers who frequently provide both consulting and capital, or act as agents to help startup companies find investors.