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How To Manage Independent Contractors

Freelancers enjoy a lot of autonomy across their work. But you’ll still need to know how to write an independent contractor agreement that’s fair to every side. This could be the foundation of a great business relationship. With that in mind, here’s how to manage your freelance workers.

Why You Should Hire Independent Contractors

New firms (or even seasoned industry veterans) hire contractors mainly for flexibility. Freelance workers aren’t on the official payroll, for example. This makes them perfect for operations that change in scale. Contractors are, in a way, an on-demand workforce you can always count on.

You also won’t have to pay these workers the usual employee benefits. You should still work on building a good relationship with them. But you won’t have to pay for their tools in arrangements like these. However, freelancers might ask for more per job than a full-time staff member.

Independent workers bring specialist skills that your team may not have. You can skip a lengthy hiring process through local talent networks you trust. This cuts costs even more — while giving you a great new team member.

Ideal Practices for Managing Contractors

You can’t just expect the freelancers you hire to take care of everything. You also have to manage them well. Otherwise, you won’t get their best work. Here’s how to make the most of your contractors.

Standardized Onboarding

You need your freelancer to be on the same page as your actual team. This is the only way they can work to the same standard and blend in seamlessly. Make sure to take them through all the same onboarding tasks as ‘full’ employees.

These workers should know your firm’s main values. They’ll even need training for the software you expect them to use. Make sure this happens, even if it’s on company time. 93% of American freelancers say on-the-job training is instrumental.

This also includes setting expectations for each side. They need to know exactly what you want from them and how they can help you get it. Finally, assign a team member as their first point of contact. This helps if they have any questions.

Negotiate the Contract

A pre-made contractor agreement shows you exactly how other companies generally treat their freelancers. You’re always welcome to adapt this to your organization — so long as it stays fully legally binding.

The contract must clearly outline their roles and responsibilities. They need to know where their jurisdiction ends, for example. This helps you cut down on scope creep. They won’t be trying to do more than you’re paying them for.

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You should also read up on your state’s freelance worker laws. Illinois recently introduced its own Freelance Worker Protection Act, for example. A pre-made template will usually fit your state’s requirements already.

The agreement must also include information about deliverables and deadlines. It must be clear from the start exactly how you’re measuring success. This gives your freelancer a good idea of how to pace their work and deliver results.

Don’t Micromanage

Freelancers often choose that route because of the flexibility it offers. You need to balance your onboarding process so it doesn’t border on micromanaging. So long as they meet key targets, it might be best to leave them to it.

In 2023, 64 million Americans worked freelance, according to Upwork. Many of them go into this specifically to be their own boss. This means it’s best to give them space while they work. You’ll likely cause conflict if you push against this too hard.

However, you should still offer feedback and give regular performance reviews. Your freelancers are ultimately working for you and your company. You still have a say in whether they’re doing their job the ‘right way’.

Treat Them Like an Employee

This may seem like it conflicts with a freelancer’s independence. But you must still include them in the team where you can. For example, you can invite freelancers to team meetings and even out-of-work social events.

You might plan to have your contractors working with your team for a long time. The best way to approach this is to make sure the two ‘groups’ blend together. This does wonders for building up a strong rapport. Everyone will work better if they get along.

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Your contractors are still people you pay to help your business thrive. You might be hiring these freelancers specifically (or partly) to cut costs on special employee perks. But you might decide to give them certain perks anyway. This will bring them closer to your project and its success.

Conclusion

There’s a thin line between contractors and employees. Balancing this will help you build strong, long-lasting relationships with your freelancers. But this all starts with a fair contract that clearly sets out their role. Without these documents, you won’t be able to manage them in the right way.