How to Manage Contractors (the Right Way) in 2024 and Beyond

Hiring independent contractors is one thing—learning how to manage contractors effectively is something entirely different. You have everything from onboarding and project management to timely payments and freelancer retention.

Oh, and remaining compliant with a maze of international workforce laws, too.

Without the right tools and know-how, managing independent contractors is definitely not easy. Fortunately, we can help you with both the platform (contractor management is what we do, after all) and the knowledge necessary to get the job(s) done.

Managing your independent contractors is more than a logistical challenge, though—it’s an opportunity to harness creativity, drive efficiency, and open doors to exceptional global talent.

Whether you’re a seasoned pro at managing a diverse team of freelancers or just dipping your toes into the contractor pool, this article provides all the resources you need to get it right from the start. We’ll dive into all the nitty-gritty aspects of managing contractors (the right way) now and in the future.

The line separating contractors from full-time employees can sometimes be razor-thin. The main distinction lies in the degree of control and independence: while employees often work under the direct supervision of their employer, contractors operate independently, managing how and when they perform their tasks.

This difference affects daily operations, tax responsibilities, benefits, and labor rights. Misclassification can lead to significant legal and financial repercussions, making it a non-negotiable priority for contractor management.

And it’s not just about understanding your own workforce laws. As you grow your team and expand globally, you’ll need to be familiar with international laws and regulations—and these change for every country.

This includes creating comprehensive contracts that detail the scope of work, deadlines, payment terms, and confidentiality agreements, ensuring contractors are tailored to the legal requirements of the contractor’s country. Tax obligations also vary widely, with some countries requiring businesses to withhold taxes for contractors, while in others, contractors are responsible for their tax submissions.

Local labor laws may also impose specific obligations on businesses, such as contributions to social security or adherence to minimum wage laws (yes, even for contractors). Understanding these nuances is critical to maintaining compliance and avoiding penalties, highlighting the need for legal expertise and specialized software solutions that can navigate these complexities.

Onboarding is the first step and sets the tone for the relationship, establishes clear expectations, and paves the way for effective and efficient project execution. This process isn’t just about administrative tasks—it’s about creating a welcoming and inclusive environment that values the contractor’s contributions.

Want to make sure you don’t miss anything? Check out our Complete Contractor Onboarding Checklist. TLDR? Here’s what you need to know:

Managing contractors remotely isn’t always intuitive. It’s a new skill, and it takes the right blend of tools and communicative strategies to foster a cohesive and productive team in a distributed environment.

Here’s how you can manage contractors in a remote setting better:

Payment processing is a huge part of contractor management that often doesn’t get the time and consideration it deserves. Ultimately, your contractors want to make money—it’s not selfish or unaligned with your goals, but it’s just the way it is.

You want deliverables. Contractors want to get paid.

And they want it to be easy and efficient. They don’t want late payments, and they don’t want to be bugging managers or payroll to get paid. They want it simple and streamlined. 

Yet another challenge is that while employee payroll typically goes through HR and Accounts Payable, there is shared responsibility (and often disjointed processes) for paying contractors. Your freelancers may all use different invoicing tools and request different payment methods. It can easily become hours and days of administrative burden just to pay out your contingent workforce. 

That’s where a robust payment processing solution comes in handy. For example, Worksuite Global Pay provides the following:

Fostering long-term relationships with contractors isn’t just about getting the job done. It’s about building a network of trusted, reliable talent that can grow with your business. It’s hard work to find freelancers you can trust, and once someone has gone through the hassle of hiring and onboarding, you don’t want to lose them.

Investing in these relationships can reduce freelance turnover, streamline project onboarding, and cultivate a culture of loyalty and mutual respect. Here are some ideas to help make it happen.

Regularly recognize and reward your freelancers (just like you would full-time employees). We all want to be noticed for our hard work and wins—your contractors are no different. You can do this through simple thank-you notes or public recognition during broader meetings.

Offer contractors the chance to take on new, challenging projects that allow them to grow their specialized skills and expertise. You might even include them in strategic discussions about projects they’ll work on rather than just handing them assignments. This inclusion makes them feel valued and provides a clearer understanding of business goals, allowing them to align their work more closely with your vision.

Knowing how to manage contractors is an important step, but now it’s time to make it happen. That’s where we can help.

Worksuite provides a comprehensive, customizable solution to help you organize, manage, and pay your contractor network compliantly on a global scale.

Ready to transform how you manage your contingent workforce? Schedule a demo with our team to see how Worksuite can streamline your contractor management processes into a unified system.