Your Top 10 Questions About ManagingFreelancers & Independent Contractors

Asked & Answered:

www.workmarket.com

10 More businesses have started turning to freelancers and independent contractors (ICs) than ever before, and the reason is simple: talent is the most precious corpo-rate resource. Organizations have found that freelancers and ICs allow them to scale an on-demand workforce, access new talent pools, and pursue new market opportunities.

Today, the freelance economy (comprised of freelancers, ICs and consultants) makes up approximately 12% of the domestic workforce, and by 2020 it's expected to reach 16% according to the U.S. Bureau of Labor Statistics and MBO Partners. All in all, the freelance economy represents a $1.4 trillion dollar market opportunity.

Your Top 10 Questions About ManagingFreelancers & Independent Contractors

Asked & Answered:

10 Rise of The Freelancer

The rise of social networks helped give birth to the freelance movement. The ability to make social connections online and cultivate trusted relationships was instrumental in allowing independent work-ers to uncover new work opportunities.

As the future of work continues to evolve, it’s important that businesses and workers have access to technology that allows them to manage the complexities associated with this talent category. Having been immersed in the world of work, we sat down to answer some of the most common questions around the freelance economy:

More than 34% of the U.S. workforce - or53 million Americans - are now freelancing.

- Freelancing in America: A National Survey of the New Workforce; Freelancers Union

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What benefits can independent workers provide my business?1

One of the most common questions we received revolved around the benefits, or business value, of using freelancers and independent contractors. Utilizing freelancers and ICs allows businesses to: Improve financial flexibility and embrace a variable cost model

Gain access to new talent pools filled with highly skilled contractors

Expand upon new business opportunities and attack developing markets

Retain valuable alumni talent

Freelancers are independent workers that take financial risk when delivering their services

According to our conversations, many people were confused, or even unaware, about the di�erences between freelancers and temps.

Temps, on the other hand, typically work 40 hours a week and are managed by an external sta�ng firm

What is the di�erence between a freelancer and a temp?2

3What is a Freelance Management System™ and how can it help me?

A Freelance Management System™ (FMS) is our cloud-based solution that helps businesses manage their independent workforce. Our industry-leading solution empowers businesses to manage the entire freelance workstream, including everything from:

Find the right workers, in the right place, at the right time

Verify worker skills, credentials and qualifications

Engage with workers, manage job expectations and negotiate contract terms

Manage workers at scale, across the country, through one dashboard

Pay workers instantly, automatically, and by any method

Rate worker performance and analyze internal labor metrics

4What is the di�erence between a talentdatabase and a talent marketplace?

A talent marketplace refers to a community of freelancers that actively engages in two-way communication. A good marketplace provides transparency through up-to-date worker ratings, certifications and credentials.

Client 1 Client 2 Client 3 Client 4

Marketplace

A talent database usually in the form of a spread-sheet generally refers to an internal and static list that businesses use to keep track of names and other information about potential freelancers that they have worked with in the past.

TalentSource

TalentSource

TalentSource

TalentSource

Client 1 Client 2 Client 3 Client 4

5How do crowdsourced ratings help me build a better workforce?

Crowdsourcing, or gathering/soliciting data from a large group or community, allows businesses to more accurately evaluate talent. They can view a contractor’s past performance and read detailed reviews about everything from their work quality, professionalism and timeliness.

Work Market helps companies make intelligent decisions about what contractors to hire for various projects. More importantly, it gives them invaluable peace of mind as they deploy freelancers to represent their business.

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What are some of the steps companies take to remain compliant with various labor regulations?6

One of the biggest concerns we heard during our conversations related to labor compliance and worker classification. Businesses need to ensure that workers are properly classified in order to comply with government guidelines and avoid being financially penalized. The basics include:

Keeping detailed project records and clearly defining assignment and work terms

Issuing freelancers/ICs a 1099

Ensuring freelancers make their services available to the general public as opposed to a single company

Ensuring contractors are using their own tools (and not ones provided by the employer)

Ensuring freelancers are taking financial risk and embracing accountability Consulting with a labor lawyer to address any concerns you may have

The best way for a company to ensure a contract worker serves as an excellent representative of said company is to be transparent and arm them with all the information they need to be successful. Make sure that you’re:

Frequently communicating and giving prompt feedback

Providing detailed assignment information

Managing expectations with regards to payment and timeliness

More businesses are finding that building a shared level of trust with a contract workforce can create tremendous value and help ensure consistent and quality work outcomes. Investing time and the necessary resources to properly onboard your extended work-force can go a long way.

Your Brand

Provide transparency about what you do.

What does it mean to work for your company?

Form a relationship that shows value in what they bring.

How do I transfer company culture and ensure quality with my extended workforce?7

8What is the right timeline for deploying a technology solution to help manage my independent workers?

Every business is di�erent and determining how quickly to implement an FMS will vary from business to business. There are however several universal factors to consider when formulating a timeline to implement an FMS:

Consider if you need an API

Ensure all stakeholders are bought into the process

Determine how your existing management processes will be impacted

Assign an internal champion to take ownership of the implementation

Ultimately, making sure your team is comfortable and prepared to embrace an FMS will lead to the greatest likelihood of success.

The most important aspect of managing an independent workforce, espe-cially for those with no experience in doing so, is to agree on and establish a solid set of processes for your organization.

An FMS can help businesses establish a set of well-defined processes to e�ciently recruit and on-board talent. For example, leveraging an FMS to craft a series of skills verification tests for workers can help companies attract exceptionally qualified contractors.

Once a set of processes are in place, they should be continually evaluated to ensure they’re e�ectively serving their purpose, maximizing operational e�ciencies and adding value to the business.

How should I manage an independent workforce if I’ve never done it before?9

How do you get started with an FMS such as Work Market?

An FMS, as with any new business system or software, needs to be properly implemented before it can start making an impact.

One of the best practices in ensuring a proper software installation is delegating responsibility to an internal company champion who can take ownership of the implementation and ensure its successful deployment. The designated ‘champion’ should also document his knowledge and experience during the process to ensure any institutional knowledge pertaining to the software implementation is retained within the company’s four walls.

Just as important, it’s critical to solicit buy-in from the impacted stakeholders before finalizing the implementation. As always, it’s important to closely monitor the progress of the deployment to measure success and ensure the relevant stakeholders are seeing value.

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Work Market Is Powering The Future of Work

We’re on a mission to power and enable the freelance economy. Work Market provides the #1 solution empowering companies to manage the entire freelance workstream, from finding and managing workers all the way to paying and rating them.

As the nature of work continues to evolve, businesses will need powerful technology to address the complexities associated with managing non-traditional workforces. Businesses of all sizes in all industries have started turning to Work Market to find and manage their growing freelance workforce. Will your business be next?

To learn more about Work Market and schedule a demo, email sales@workmarket.com or call 877-654-WORK.