MBO Partners provides an excellent debunking of 10 myths about engaging with independent contractors. These are the first few:
1. Independents don’t have the skills I need
The segment of the independent professional population that you will engage for projects or specialized work has a wide range of skills. Remember, these full-time independents have built a career out of being experts in their industry. These are workers whose talent is highly sought after, especially in competitive areas such as IT, marketing, biotechnology, and pharmaceuticals. In fact, one in five independents earns more than $100,000 annually from their work, and more than 41% have college degrees—compared to only 33% of the general population. If you have concerns about a contractor’s skill level, review their resume, portfolio, and past client reviews. Don’t be afraid to ask for references or review detailed questions upfront.
2. It’s too risky to engage independent talent
As the use of independent talent becomes more widespread, organizations today can engage these individuals with minimal risk. The key here is ensuring that you have a worker classification policy and guidelines in place as well as a written contract for all independent workers. In the news, you’ve probably heard about high-profile employee misclassification lawsuits. Partnering with an organization experienced in independent contractor engagement, such as MBO Partners, can help you put the right measures in place to minimize risk and ensure compliance.
3. The contingent workforce is just a trend
In fact, numerous studies have pointed out the opposite: the project-based economy is here to stay. Independent talent provides organizations with a number of benefits including financial incentives, staffing flexibility, and access to specialized expertise. On the other side, many traditional employees are turning to independent work for the freedom it provides. We predict that by 2027, six in ten workers workforce will have spent time as an independent worker at some point in their lives.
4. Independent talent should only be engaged for short-term work
While one of the benefits of using independent talent is having the flexibility to bring in workers when and where you need them, that doesn’t mean they are limited to short-term work only. Many independents work with clients on long-term projects that may span a year or more. The ability to establish long-term relationships with contractors who work well with your company is actually another benefit of utilizing this talent pool.
5. The financial benefits aren’t substantial
As competition for top talent increases, the price of employment will continue to rise. Engaging independents on an as-needed basis is often more cost-effective than hiring a full-time employee who may not be needed in the long run. Because independents are experts in their field, they can save businesses time and money on training, onboarding, and management. Independent contractors are also responsible for their own health insurance, taxes, and other employer-provided benefits. Because independents generally have a set bill rate, you’ll know what to expect cost-wise.
Read the full story at Debunking 10 myths about independent contractor engagement | MBO Partners