Managing an Independent Contractor

March 16, 2010

Companies hire Independent Contractors for a variety of reasons: It’s cheaper, their projects are short-term, or they simply aren’t sure if the project they are working on is going to permanent. Managing an Independent Contractor can be a little difficult since they usually work off-site, but Inc.com did a great piece on how to find and manage an Independent Contractor.

Finding the Right Fit
It’s important to lay out specific goals and timelines for Independent Contractors. Write the job description as if you were hiring a full-time employee. If you are unsure of what to pay an Independent Contractor, try visiting websites such as elance.com and Salary.com.

Terms
Write the contract clearly. Include specific goals and timelines, but also include measures in which those timelines can be extended. Include information such as equipment and staff needed to accomplish said goals. Also, remember to correctly report your contractors to the IRS. According to this article, 15% of the workforce is misclassified.

Maximize Productivity
An Independent Contractor probably already knows how they work best, or they would not be successful. That in mind, you may want to include an incentive in the contract, such as the potential for a bonus if the job is done earlier than expected or if the contractor goes above and beyond.

You can read the entire article here.