How to Hire, Manage, and Pay Contractors and Freelancers

If you are a business owner, you know that there is a big difference between hiring full-time employees and working with contractors or freelancers.

Did you know that according to a LinkedIn report, 70% of small businesses have hired a contractor or freelancer at some point?

These workers are obviously a crucial part of helping the business run. However, it can be hard to not only hire them but then to know how to manage them and know exactly how to go about paying them.

This is a guide about the best ways to hire, manage, and pay contractors and freelancers.

The Hiring Process

Contractors and freelancers are great for filling the gaps in your business. You can bring in experts, save money, and have more options for finding employees.

Just because they are not full-time employees, does not mean that you should not be investing time in finding the right person for the job.

Create A Detailed Job Description

When you are posting on job sites or even your website, you need to have an extremely detailed job description. This allows the contractor and freelancer to clearly understand what is going to be expected of them.

Layout the workflow expectations, the schedule, the pay rate, and daily tasks.

Getting examples of successful freelance and contractor job descriptions can be very helpful. Take a look at the examples in this article.

Layout All Expectations

Freelancers and Contractors are not around all the time like regular employees. Therefore they need to know exactly what is going to be expected of them.

When you are hiring them, make sure you talk to them and tell them everything you had in mind for the position as well as your goals for the business.

Make sure they see the big picture and how it affects the business. If they understand the expected outcome of the project, they can complete the project in a manner that you are happy with and they can feel confident in.

Communication and Learning

Contractors and freelancers are more independent than regular employees, however, when you are onboarding them and helping them get acquainted, you need to make sure that you spend ample time with them.

This integrates the new contractor or freelancer into the company culture and language. It also helps to keep them engaged.

How To Manage Properly

The question is, how do you keep a contractor or freelancer engaged and excited about the work they are doing without micromanaging.

Most likely, a contractor or freelancer got into that line of work because they wanted to be able to work independently as well as on their own time. So managing them is a balance of making them feel like part of the team while giving them their space to work.

Here are a few suggestions of things that you can do to manage the contractors and freelancers well:

Communication and Feedback

It is always good to make sure that you communicate with your contractors and freelancers. Make them feel connected with the other employees and you. They will feel like more of the team and more engaged.

Following up with the contractors and the freelancers helps with communication so that they will feel comfortable coming to you with questions or problems.

Giving them feedback and following up will also help improve their work and ensure that they are continually hitting their targets.

No Micromanaging

Keep in mind that contractors and freelancers got into this profession because they either work better with more autonomy, or they need the flexibility to work on their own time.

So make sure that you are not constantly bombarding them with questions or asking for updates all the time.

Ask Them What They Want

You will not be working with the freelancers and the contractors as much as your regular employees so knowing what makes them tick will help you know what motivates them.

If they are doing the job for money, you can give them the proper compensation. Or, say it is learning a new task, you can spend more time teaching and engaging with them.

Paying Them Correctly

One of the hardest parts of working with contractors and freelancers is understanding how to pay them and how to collect all of the correct documentation.

Paying A Contractor

A contractor is more similar to a full-time employee. Once they are hired they may have insurance or benefits paid through the company.

To get paid regularly, upon hiring, a contractor must fill out a W2 form.

Paying A Freelancer

Freelancers are classified as a 1099 independent contractor. This means that they will need to fill out a W9 form and then from there you and the freelancer can choose how the payment happens.

You can choose to pay the freelancer all upfront, some to start and the rest at the end of the job, or after the job is complete if it is a temporary contract.

Pay Contractors and Freelancers with A Platform

One way to ensure that you are paying contractors and freelancers correctly is to use a platform that is designed specifically for this purpose.

If this is something that interests you, take a look at Next Generations payroll services, you might find out that it is the best option for you.

Do You Need Help With Contractors and Freelancers?

Working with contractors and freelancers can be a great resource for your business. There are just a lot of details to understand.

Next Generation Payroll helps you with every step of the process. We offer digital marketing, HR management, and payroll assistance.

Do you need help with paperwork? Or do you need help with finding out how to go about paying your contractors? You can do exactly that, through Next Generation Payroll. If you want to streamline your business documentation and payroll, schedule a demo with us today by filling out the form below!

We want your business to thrive! We want you to reach your business goals and we ensure you’ll go further than you thought possible!

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