5 Common Concerns About Hiring Independent Contractors

Working with independent contractors for the first time can feel like uncharted territory. You might have concerns about the quality of their work, the costs involved, or whether your time and resources will be used effectively. Plus, it can be difficult to trust someone new with important tasks.

Independent contractors bring a variety of benefits to the table, such as specialized expertise, staffing flexibility, and cost savings, which often outweigh these concerns.

Success in Managing Independent Contractors Starts Here

Here are five common concerns about working with independent contractors and our recommendations on how to address them:

1. Cost of Hiring Independent Contractors

It’s natural to wonder if hiring an independent contractor will cost more than bringing on a full-time employee. However, when you consider the overall costs, contractors can be more cost-effective in the long run. Their expertise allows them to work efficiently, reducing the need for extra training and supervision.

Independent contractors usually set clear rates and provide detailed proposals that outline the project scope, timeline, and costs, giving you a better idea of what to expect. Plus, unlike full-time employees, you only pay for the work completed, saving money on things like benefits and long-term salaries.

Check Out: 10 Myths About Working With Independent Contractors

2. Level of Skills and Experience

Handing an important project to someone outside your company can feel a bit uncomfortable. You might worry about whether they’ll understand your needs or meet your expectations. Taking the right steps before hiring can help ease these concerns.

Review the contractor’s resume, portfolio, and client reviews to get a better sense of their work. Ask about relevant projects they’ve worked on and address any concerns you have upfront. Requesting references can also give you reassurance about their reliability and past performance.

Learn More: 5 Things to Look For When Hiring Independent Talent

3. Company Privacy and Security

Since independent contractors work with multiple clients, sharing sensitive information can feel risky. A well-structured contract can help protect your company’s confidential data and trade secrets.

Make sure to include clear clauses on intellectual property, confidentiality, and data protection. This keeps your business information safe and sets clear expectations for both parties. Regularly reviewing these agreements helps maintain security as your relationship with the contractor continues.

4. Communication and Work Styles

Since independent contractors often work remotely, you might wonder how available they’ll be or how communication will go. Setting clear expectations from the start helps everything run smoothly.

Create a communication plan that includes check-ins, progress updates, and deliverables. Remember, independent contractors focus on results rather than working a set 9-to-5 schedule. This flexibility can benefit your project by allowing them to work during their most productive hours. Work together to find a workflow that suits both sides while avoiding micromanaging.

Discover: How to Communicate With Your Independent Contractors

5. Support for Innovation and Other Growth Initiatives

Independent contractors often offer fresh perspectives that can benefit your business. Their diverse backgrounds and specialized skills can provide insights that might otherwise be overlooked.

With outside experience and unbiased viewpoints, they can help drive innovation and offer creative solutions that internal teams might not have considered. This ability to approach challenges from a different angle can lead to breakthroughs that push your projects forward.

MBO Partners Helps Companies With Hiring Independent Contractors

For more expert advice on contingent workforce management and working with independent contractors, follow MBO’s blog for valuable updates and insights. We cover essential topics, including Employer of Record (EOR) services, compliance, AI technology, and more to help you build a successful workforce that’s ready for the future.

Have any other questions or concerns about working with independent professionals? We’re here to help.