As your business grows, there will probably come times when you need to hire independent contractors. Before you do, make sure you know the following six best practices.
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Be Crystal Clear About the Project
Often when you hire independent contractors these days it is to perform jobs offsite, which means it is not as easy to check on their work as they progress and to be around to answer any questions. Even if your contractor is on-site, it is essential that you are crystal clear about the work that needs to be completed. But it becomes even more important when the contractor is working hundreds or thousands of miles away. Quite simply, when you ensure you describe every specific detail of the tasks the contractor needs to complete in writing, you can better ensure there is no confusion or disappointment. It is a good idea to chat online face-to-face with a contractor in addition to putting everything in writing to double-check that the contractor fully understands your precise requirements.
Always Sign an Agreement with the Independent Contractor
Before your chosen contractor begins work and before you pay anything, always sign a written contract or agreement. It is beneficial for both of you. As an employer, you have the chance to hold the contractor accountable should he or she not complete work as agreed, and from the contractor’s point of view, he or she has assurance that you will pay for the work. It is quick and easy to generate an independent contractor agreement when you use an online service that generates the required documents for you. All you have to do is answer a few simple questions.
Ensure Your Contractor Is Insured
Independent contractors should obtain and pay for their own insurance. When generating an agreement or contract, make sure the contractor has the right insurance in place. Typically, an agreement with a contractor should include at least minimum coverage for things like professional liability, general liability, and cyber risks.
Consider who Is Providing the Equipment
For most projects, contractors are expected to use their own equipment and resources. Make sure that that is the case before signing on the dotted line of a contract. If the project requires a specific form of equipment, make sure you decide who will pay for that equipment before work begins, and put it in writing.
Know the Industry Standard Wage and Pay That Rate
Independent contractors will know what the industry standard wage is for their industry and position and will expect to be paid that amount. So, ensure you know what the industry standard wage is for the role to ensure you do not pay over or under. While you may be able to find contractors who are willing to work for less than the standard pay, it is not recommended that you do so. If you pay less than the going rate, you will typically get substandard work.
Hire the Right Individual for Your Specific Needs
Whether you are hiring an independent contractor for a few days or six months, you need to ensure the person has the necessary skills and experience. You also need to make sure he or she is pleasant to work with. Hiring an independent contractor should be no different from hiring an employee in this respect. You need to find the right fit for the position. So, always interview a contractor before hiring, in person or online, and make sure he or she has the capabilities and attributes that you are looking for. It is also vital you check the contractor’s references before you hire him or her. When you take steps to ensure you hire the right contractor, you should not run into any problems once the contractor starts work.
