Whether driven by budgeting constraints, shorter project timeframes, or the need for specialized skills, a growing number of large enterprises are opting to bring on independent contractors. To streamline this overwhelming amount of freelancer data, project tracking and invoice management, they need the right contractor management software.
As these enterprises scale their contractor workforces, however, talent management becomes complex and tedious. Onboarding, project assignments, payment disbursement, and tax compliance all require a heavy administrative burden that only accelerates as the workforce grows.
To overcome these challenges, large companies are increasingly turning to contractor management software (“CMS”) to automate core processes. These comprehensive, cloud-based platforms feature all the tools that businesses need to source, onboard, and manage contractors — all with less time and hassle. In this article, we’ll dive into the top benefits of contractor management software for global enterprises.
The global workforce of independent contractors has exploded in recent years, and hiring of these freelance workers has surged dramatically – particularly at large companies. In fact, an estimated 89% of S&P 500 companies hired independent contractors in 2021.
Just like full-time employee (FTE) management, overseeing contract workers is a labor-intensive job that frequently burdens company executives and managers across several departments.
Although enterprises have largely automated FTE management using advanced HR software solutions, many of these same companies continue to rely on outdated practices for managing their contractor hires. The use of spreadsheets, emails, and disparate applications is very common — and this clunky approach is time-consuming, error-ridden, and simply unsustainable for large and growing workforces.
Fortunately, innovative contractor management solutions and freelance management systems (FMS) like Worksuite help enterprises manage freelance employees much more efficiently. Let’s explore the top ten benefits of using contractor management software.
The onboarding process for new employees involves extensive documentation collection and back-and-forth communication. CMS solutions speed up this process thanks to automated onboarding workflows that communicate with contractors, disburse policies and documents, and collect required materials. This automated flow ensures that every onboarding item gets crossed off the list with minimal administrative labor.
Complying with tax laws, worker classification laws, and other relevant regulations is no easy feat, especially for companies that hire contractors in several countries. Contractor management software ensures that all workers are engaged legally by verifying contractor identities, classifying workers, and vetting tax requirements. CMS can also generate custom independent contractor agreements based on geography-specific regulations.
CMS platforms come equipped with contractor databases for storing and categorizing freelance talent pools. This is a necessary tool as enterprises grow their contractor networks, as it enables them to neatly organize all contract hires and easily match talent with open roles. These robust contractor databases feature filters and easy search options to narrow down talent by availability, skillset, rate, location, and more.
The use of a CMS system improves the overall work experience for independent contractors, which helps companies maintain long-term beneficial relationships. CMS systems facilitate efficient communication, simplify onboarding, ensure timely payments, and streamline project briefing — all of which can go a long way in boosting worker satisfaction. This, in turn, benefits the employer who is then able to retain contractors for longer and bolster its reputation as a top company to work for.
Enterprises that aren’t using contractor management platforms frequently struggle to make timely payments, maintain accurate records, and minimize time spent on accounts payable. Instead, they often spend countless hours sifting through disparate apps and records in order to confirm pay rates, look for routing details, and mark invoices as paid.
In contrast, a CMS system can sync all payments and invoices, automate payment disbursements, and simplify bookkeeping. Manual data entry is greatly reduced, and contractors are paid on time.
Managing company projects is challenging even when only in-house employees are involved. Add independent contractors to the mix, and keeping the project on track can quickly become complex. Contractor management software helps companies reach the finish line with greater ease, thanks to helpful tools for assigning projects, creating detailed briefs, and tracking project progress.
CMS systems empower companies to make data-driven decisions that improve project outcomes and return on investment. With access to real-time tracking and reporting features, enterprises are able to monitor key performance metrics. They can then make informed hiring decisions that maximize ROI and improve project performance.
Using a contractor management system doesn’t just save time, but it can also greatly cut costs. Not only do these platforms reduce overhead and staffing costs by minimizing manual labor, but they also provide rich data on all contractor-related costs incurred. This enables enterprises to track expenses accurately and allocate budgets more efficiently.
As enterprise workforces grow and company initiatives evolve, CMS solutions make it easier for in-house teams to manage projects and hiring processes. By automating the onboarding process, ensuring legal compliance, and simplifying talent sourcing, these platforms help companies greatly expand their use of contractors without incurring excessive costs, labor, or inefficiencies.
Contractor documentation can be extensive and risk-sensitive. Storing disparate records in multiple locations and formats is not only unsecure, but it also makes it challenging to locate documents and perform audits down the road.
CMS platforms serve as a central repository for all contractor information, keeping records organized and easily searchable. Additionally, encryption technology and user controls help prevent unauthorized access to sensitive data and ensure compliance with relevant regulations.
Hiring contractors is a great way for your company to gain access to niche skillsets and fresh perspectives, all while benefiting from a more flexible and adaptable workforce structure. If your enterprise has made the smart choice to tap into contract talent, know that effective management of your hires is necessary to catapult company growth.
With the help of Worksuite’s top-rated contract management software, you can automate your contractor onboarding, project management, and payment workflows — so you can seamlessly grow your contract workforce and spend more time on high-level work.
Interested in seeing our platform firsthand? Click here for a free trial.