Small Business Operations Made Simple: Tips for Managing Independent Contractors
Outsourcing roles in a small business is an effective way to save money and improve productivity. But managing external hires can pose a challenge for the procurement department, especially if you lack experience in this area. Managing independent contractors requires a keen understanding of how they work and what kind of support they need to fulfil their role in your business. Whether you’re outsourcing your payroll, HR, manufacturing, merchandising or any other task, you need to understand how they fit in and function.
Of course, this type of management is a skill you can learn. And you can start by looking at a few practical ways to improve communication and productivity while working with independent contractors.
Discuss expectations upfront
Just about every professional has experienced the disappointment and frustration of not delivering a project to the client’s expectations. And when it comes to working with external hires, the potential for misunderstanding briefs tends to grow higher.
But you can prevent unnecessary confusion by establishing clear expectations with your freelancers from the get-go. Discuss in detail what you expect from them as a contractor, and what their exact role will be in your business.
Establish working hours
Many independent professionals set their own hours and schedules. Depending on your business and what kind of work they will be doing, this may suit you. But if not, establishing core hours can help to promote healthy communication and avoid the issue of overtime.
Even if you are comfortable with them setting their own schedules, talking openly about which hours they will work will mitigate the risk of unnecessary setbacks. You’ll also need to set parameters around emergencies and what will happen in the event that they occur.
Always have a contract
All independent contractors should provide a contract upon entering into a professional agreement with you. But on the off chance that they don’t, it’s a good idea to create one yourself. It’ll benefit both parties and streamline all aspects of communication.
A typical contract includes information regarding project scope, contact details, role deliverables, payment terms, and any other information relevant. It may also cover the use of specific tools such as payroll software or outline regulations around specific programs or safety policies.
Communicate regularly
Maintaining clear lines of communication is essential to working cohesively with an independent contractor. Because you both have independent agendas and goals, developing a keen understanding of each other’s professional objectives is necessary for productive outcomes.
Communication should be consistently kept alive, not just at the beginning or end of a project, but throughout the process.
Avoid micromanaging
Last but not least, remember that independent contractors are independent for a reason. They are well-rounded professionals who are fully equipped to work on their own.
Whether they’re responsible for payroll services for small business operations or are a crucial cog in the supply chain, trust that they know what they’re doing. You hired them for a reason. While some management will be needed from time to time, allow your external hires some space to do what they do best.
Making Independent Contractors Work For Your Small Business
Independent contractors aren’t like regular employees. They have their own schedules, vision, and method of working that may differ from yours.
When running a small business, working cohesively with your team is essential, which is why knowing how to manage outsourced employees is so important. You need to ensure they fit into your business in the way you envision and that they have the correct information and resources to keep the momentum going.
With these tips, every small business owner can facilitate a more productive relationship with independent contractors, regardless of the role they fill.
Find out how a professional qualification from IoSCM can advance the capabilities of your business. Call 0800 1422 522 today.