1. business and industrial

Asked & Answered:
Your Top 10 Questions About Managing
Freelancers & Independent Contractors
www.workmarket.com
10
Asked & Answered:
Your Top 10 Questions About Managing
Freelancers & Independent Contractors
More businesses have started turning to freelancers and independent contractors
(ICs) than ever before, and the reason is simple: talent is the most precious corporate 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.
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 workers 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:
- Freelancing in America: A National Survey of the New Workforce;
Freelancers Union
“
“
More than 34% of the U.S. workforce - or
53 million Americans - are now freelancing.
1
What benefits can independent workers provide
my business?
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
2
What is the difference between a
freelancer and a temp?
According to our conversations, many people were confused, or even unaware, about the
differences between freelancers and temps.
Freelancers are independent workers
that take financial risk when delivering
their services
Temps, on the other hand, typically work
40 hours a week and are managed by an
external staffing firm
3
What 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
4
What is the difference between a talent
database and a talent marketplace?
A talent database usually in the form of a spreadsheet 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.
Client 1
Talent
Source
Client 2
Client 3
Client 4
Talent
Source
Talent
Source
Talent
Source
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
Marketplace
Client 4
5
How 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.
6
What are some of the steps companies take
to remain compliant with various labor
regulations?
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
7
How do I transfer company culture and
ensure quality with my extended workforce?
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:
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.
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 workforce can go a long way.
8
What is the right timeline for deploying a
technology solution to help manage my
independent workers?
Every business is different 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.
9
How should I manage an independent
workforce if I’ve never done it before?
The most important aspect of managing an independent workforce, especially 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
efficiently 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 effectively serving their purpose, maximizing operational
efficiencies and adding value to the business.
10
10
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.
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.