10 Do’s and Don’ts to Follow when Working with Independent Contractors
Here are tips, best practices, and alerts to keep in mind when you’ve engaged an independent contractor.
DO THIS | NOT THIS |
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Develop job descriptions tailored to the independent contractor audience
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Don’t repurpose a full-time job posting for contractors without changing key details
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Evaluate resumes like you’re evaluating a potential vendor
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Don’t become overly focused on candidate resumes. Consider their experience, not prior job titles or seniority
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Keep the momentum going In today’s competitive job market, candidates expect project offers within days, not weeks or months. Ideally:
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Don’t post projects if you’re not sure what’s happening
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Keep lines of communication open
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Don’t forget onboarding and orientation
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Re-Engage known talent
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Don’t let top contractors slip away
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Independent contractors are a valued asset to organizations because of their experience, expertise, and ability to work when needed. Research has shown that independents have a choice in which clients they work for and are not restricted to working for one client at a time.
Why do independent contractors often work for more than one client at a time?
Ultimately, working for multiple clients allows independent contractors the flexibility to increase their earnings, and develop their professional networks. In many fields, like consulting, marketing, and creative services, it is the industry norm and expectation to work with multiple clients. Many clients expect contractors to handle various engagements and accommodate flexible schedules. This provides clients with the flexibility to utilize the contractor only when they need them and allows the contractor the ability to maximize their earnings; a win/win for both parties.
Other benefits include:
- Income Stability and Diversification – Relying on a single client can be risky if the project ends or if the client reduces their workload. Having multiple clients ensures a more stable income stream and reduces dependency on one source of revenue.
- Maximizing Earning Potential to ensure full time hours – Contractors are usually paid per project or by the hour. Working for multiple clients allows them to take on more projects and maximize their earnings, as opposed to waiting for a single client to provide continuous work.\
- Strengthens Validity as a 1099 Independent Business – One of the factors that determines the difference between employees and contractors through the eyes of the IRS is businesses commonly have multiple clients. This helps consultants to quality for 1099 status and strengthens their case as a valid business.
- Flexibility and Freedom – One of the primary benefits of being an independent contractor is the ability to choose the clients and projects they want to work on. Working with different clients gives them greater flexibility and control over their schedules and professional growth.
- Expanding Skill Sets and Experience – Each client and project can present unique challenges, tools, and environments. By working with a variety of clients, contractors can gain diverse experience and develop a broader skill set that makes them more marketable.
- Networking and Business Growth – Having a variety of clients expands a contractor’s professional network, which can lead to referrals, future projects, or long-term engagements.
If you have questions about how to source, engage, or manage your work with an independent contractor, please complete the form below.
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