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Independent Contractors – The Wave of the Future

October 29, 2018  |   Contingent Workforce,Uncategorized   |     |   Comments Off on Independent Contractors – The Wave of the Future

EmployeesForecasts estimate that independent contractors will comprise half of the U.S workforce within the next decade. Historically, companies used independent contractors on an as-needed basis. Most companies have given little thought around how to effectively attract and retain the best independent contractor (IC) talent, with the only focus being legal compliance with DOL legislation relating to ICs.

With the forecasted large increase in the usage of independent contractor talent, companies will, undoubtedly, have to develop strategies to ensure they are attracting and retaining the best talent – showing ICs that are critical to the organization that they matter.

Following are some concrete ways that companies can start working toward better integrating the contingent workforce into their organizations.

Develop a Formal Structure for ICs
Establish formal policies and practices for contingent workers.
– Implement a formal onboarding process to ensure they know who to go to with questions or issues.
– Ensure ICs are paid competitively, and in a timely manner (within 30 days—sooner if possible).

Treat ICs as Part of the Team
Encourage collaboration between employees to drive innovations by treating ICs as professionals, and not creating damaging distinctions that serve only to segregate ICs.
– Include ICs in informal, in-house training programs to offer much valued development opportunities
(Note: Such programs should be optional to ensure DOL legal compliance for ICs.)
– Offer a pared down orientation to ICs to ensure they understand the company, its culture, and values.
– Include ICs in staff meetings.
– Include ICs in team building meetings.

Foster Long-term Relationships with ICs
– Show appreciation for ICs’ work via testimonials (i.e. LinkedIn or formal references).
– Establish a talent network for preferred ICs to ensure prior ICs are notified when there is upcoming work and can bid on new projects.
– Provide a forum for two-way feedback between managers and ICs. Managers can provide feedback about the ICs’ final products to provide ICs the opportunity to improve and develop themselves. Companies can also learn from the ICs’ feedback.

Contact Us

BCR can help your company develop competitive compensation packages for independent contractors. We can also help you establish effective Independent Contractor practices and policies. Reach out to us to learn more.

Written by: Jill Rea, BCR Consultant

BCR is a local, minority-owned firm with more than 25 years experience in serving non-profit, public, and privately held entities in the key areas of Benefits and Compensation Consulting, Performance Management, Human Resource Organization Development, and Human Resource Information Systems and Processes.

 

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