8 Best Practices for Managing Your Contingent Workforce

By MBO Partners • October 26, 2024
time 4 MIN
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Key points
  • The laws and regulations governing independent contractor engagement are constantly evolving.
  • While the rules around worker classification can be complicated, there are strategies to ensure compliance.
  • Collaborating with a reputable company for independent contractor engagement can ease your risk management concerns.
Worker misclassification is a real problem affecting real people across industries worldwide. When workers are misclassified, they miss out on essential benefits and protections they deserve as employees, while businesses face potentially serious financial and legal consequences.

But fortunately, managing classification risks doesn’t have to give you a headache. Let’s talk about eight ways to improve how you work with independent professionals.

1. Develop a System to Keep Track of Your Independent Workforce

Remember that amazing contractor who knocked your last project out of the park? Wouldn’t it be great to bring them back for your next challenge? That’s why tracking your independent talent is so valuable.

Many companies are turning to online talent marketplaces that let you build your own private pool of go-to professionals. Along with keeping contacts organized, this approach saves you money on recruiting and training while helping you fill positions in days rather than weeks.

Discover: How to Attract Top Independent Talent: Tips on Becoming a Client of Choice

2. Get Familiar With Hiring Laws and Regulations

Legal regulations around independent contractors can be confusing. Laws are constantly changing, and what applies in one location might not apply in another.

If you’re feeling overwhelmed by compliance concerns, you’re not alone. Many businesses partner with specialized workforce management firms who stay on top of these complicated regulations. They can help ensure you’re classifying workers correctly and avoid costly mistakes down the road.

3. Establish a Contingent Workforce Program You Can Scale

Your contractor program should be able to grow alongside your business. Begin with the basics: a straightforward policy that anyone in your company can understand and follow.

Create guidelines that spell out exactly how hiring managers should engage contractors. When everyone follows the same playbook, you maintain consistency while making expansion much smoother when the time comes.

See: How to Improve your Contingent Workforce Program

4. Ensure Your Independent Contractors Have What They Need

Think about your own work experience—you likely perform better when everything’s running smoothly and you have the full support of your team. Independent professionals are no different.

If contractors enjoy their projects and feel their needs are being met, they’re more likely to stick around for the long haul. Simple things like clear communication, timely payments, and respect for their expertise go a long way toward building loyalty and getting their best work.

5. Focus on Making Your Workforce Flexible

Independent professionals choose this path for different reasons. Some value schedule freedom, others prioritize diverse projects, and many appreciate being their own boss. Recognizing these differences is key to attracting top talent.

Instead of a one-size-fits-all approach, consider offering different engagement options. This flexibility shows you understand and value what makes independent work appealing in the first place.

Discover: Why Hiring Independent Contractors Can Boost Your Company’s Flexibility

6. Minimize Complexity in Your Contingent Workforce Program

There’s beauty in simplicity, especially when managing contractors. If your onboarding process requires a 100-page manual to explain, it’s probably too complicated.

A strong contingent workforce program enhances your operations without disrupting them. Simplicity is key for successful adoption by both your team and contractors.

7. Create a Great Environment for Your Contractors

Independent professionals want to do great work for you. Make it easy for them by creating an environment that supports their success.

Clear expectations and open lines of communication help contractors quickly get up to speed and deliver their best. When contractors know they can count on your organization for a positive experience, they’ll bring their A-game every time.

Learn: How to Create a Great Workplace Culture for Independent Contractors

8. Bring a Contingent Workforce Management Expert on Board

Sometimes the smartest approach is recognizing when to call for backup. Workforce management experts bring valuable experience that can save you from costly missteps.

Companies like MBO Partners have spent decades refining their approaches to contractor classification and management. They can help you navigate potential issues while creating a program that works for everyone involved.

If you’re considering adding independent contractors to your organization and need support in building a contingent workforce program, MBO Partners is here to help. With nearly three decades of expertise in hiring independent contractors, we can guide you through the process of finding high-value talent that fits your need. Reach out to our team today!

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