10 Do’s and Don’ts to Follow when Working with Independent Contractors

By MBO Partners • August 5, 2024
time 6 MIN
Consultation

Here are tips, best practices, and alerts to keep in mind when you’ve engaged an independent contractor.

DO THIS NOT THIS

Develop job descriptions tailored to the independent contractor audience

    • Market the project scope in addition to the desired skills.
    • Be clear on the bill rate range or learn about market rates.
    • Consider posting your project as negotiable and expect to pay market rate after reviewing multiple applications.
    • Make it clear what skills are required vs. nice to have. This helps talent decide if they are a good fit and helps recruiters send you exactly what you are looking for.

Don’t repurpose a full-time job posting for contractors without changing key details

  • Simply repurposing existing job postings may not accurately describe the skills you are hoping to find in a contractor. Take a little time to ensure the job description is a good reflection of your project needs and appropriately framed for an independent contractor.
  • Advertise a title that will attract the right candidates, like “Technical Project Manager” or “Sr. Front End Developer” instead of a title that may only resonate with an internal audience.

Evaluate resumes like you’re evaluating a potential vendor

  • Contractors often present their resumes by illustrating core skills and outlining specific projects completed. Learn to evaluate a contractor’s resume based on what a candidate has done or can do, instead of being concerned about gaps or longevity with a company.
  • Seek out work samples, portfolios, and references, rather than simply relying on the resume.
  • Remember contractors are engaged for a project, not a lifetime. In some cases, it may make sense to focus on the work they can produce instead of looking for the perfect behavioral fit for your team.

Don’t become overly focused on candidate resumes. Consider their experience, not prior job titles or seniority

  • Don’t assume contractors with many years of experience won’t be willing to do your project work. Independent consultants are small businesses eager to work with clients at various levels.
  • Don’t count a contractor out based on previous titles or worry they are overqualified. If the rate fits, and they’ve applied to the role, don’t be concerned they won’t do the work. Many have gone back into contracting as they prefer hands-on work!

Keep the momentum going

In today’s competitive job market, candidates expect project offers within days, not weeks or months.

Ideally:
  • Review submittals and give feedback within three days of submittal.
  • Schedule interviews for those selected within five days of submittal.
  • Schedule a second interview within a week of the first.
  • Make a hiring decision within five days of final interview.

Don’t post projects if you’re not sure what’s happening

  • While it can be tempting to hedge your bets when seeking a contractor, it can hurt both the hiring manager and the company brand in the long term.
  • Be clear on bill rate (or rate range), job requirements, and expected outcomes before posting and interviewing to ensure optimal satisfaction for both client and contractor.

Keep lines of communication open

    • After you’ve extended an offer, keep contractors engaged every step of the way. This includes communication about what to expect during onboarding as well as direct communication with your contractor before and during the project.
    • Did you know that most contractors will start looking for projects 60 days before they wish to start?
    • Transparency around project start and end dates can help ensure that your contractors remain available for as long as you need them and that they understand their importance and role not just to the project as a whole, but to key team members with whom they may interact.

Don’t forget onboarding and orientation

    • Don’t forget that your contractors, much like FTEs, need some guidance about how to best find key materials and contacts, and how to follow processes and procedures. This may mean regular check-ins, a best practices document for how contractors can find necessary materials, or even an employee “buddy” for new contractors so they can best determine how to do their jobs.
    • Remember, skipping these steps not only frustrates a contractor but can cost the company time and money too.

Re-Engage known talent

  • Talent is eager to re-engage with contractor-friendly organizations, and it’s often faster and more cost-efficient to do so. Many have completed core onboarding tasks, ensuring they can get to work faster, and they may also take less time to ramp up, as they already understand internal culture, policies, and procedures.

Don’t let top contractors slip away

  • Every good project comes to an end eventually. Once you’ve engaged talent successfully, reach out to your program manager to talk about adding these workers to an internal “talent pool” so that colleagues can easily re-engage for future needs.

 

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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