Independent contractors (ICs) offer many advantages to the companies that hire them. They allow businesses to utilize their talent when needed most for projects that demand additional resources and specific skills. On the other hand, independent contractors have a lot of autonomy in how they complete their part of the project and what they charge for their services.
Because contractors work with businesses for a limited time, companies must provide a clear-cut onboarding process when hiring them. Successful onboarding will set the project's tone and provide clear expectations for the scope of work and contractor responsibilities.
This article discusses creating and implementing an onboarding checklist for 1099 employees, best practices in utilizing onboarding software, and mistakes to avoid during onboarding.
A Comprehensive Contractor Onboarding Checklist
A smooth onboarding process is essential when you bring a freelancer onto your team. This will improve the overall efficiency of your project and help any freelancer you hire integrate seamlessly with the team.
Each time you hire a contractor or freelancer, follow this checklist to ensure you have covered your bases for onboarding.
- Basic introduction (company overview, project objectives)
- Collect contact details from the contractor
- Review and sign contract (if applicable)
- Obtain a completed Form-W 9 from the freelancer
- Introduce the freelancer to the team (via email, meeting, or phone)
- Discuss communication guidelines (email, check-ins, questions, and meetings)
- Set up necessary tools (software platform, logins, other needed tools)
- Provide style guidelines (if applicable)
- Provide article/blog guidelines (if applicable)
- Provide all project information and project guidelines.
- Establish a timeline for deliverables (check-ins, drafts, final product)
- Determine payment method and timeline
While hiring a freelancer is a great opportunity to leverage a professional’s expertise to improve your business, it can also place you in hot water if the onboarding process isn’t smooth. Using a checklist will help you ensure you are compliant and following best practices with onboarding independent contractors.
Depending on the nature of your business or project, you may want to consider adding these to your onboarding checklist.
- A Confidentiality Agreement
- A Non-Compete Agreement
It is important to understand how an independent contractor differs from an employee. While full-time employees are hired to work solely for your company, contractors are small business owners to whom you outsource a portion of your tasks. They determine their wages and working hours. Some key compliance considerations when onboarding an independent contractor include the following.
Documentation
Make sure to complete an independent contractor agreement and have every freelancer you work with complete a Form-W 9, which will translate to 1099s at the end of the year. You should also pay freelancers on a per-project basis or an agreed-upon flat rate, not hourly. Ask freelancers to provide an invoice for their services and pay these through accounts payable and not payroll.
Procedures and Guidelines
Contractors manage their business expenses, and you should not reimburse them for any costs they accrue running their business. As such, contractors should not receive employee-style benefits like healthcare, retirement savings, or PTO. Do not schedule required hours or days of work for contractors or give contractors company job titles.
Types of Work Assignments
The lines need to be very clear between company employees and freelancers. Freelancers should be tasked with roles that are separate from the operation of a business, and the nature of their work should be different from that of the company's employees. Freelancers should not manage company employees or participate in the company’s hiring or discipline process.
Additional Considerations
Because independent contractors are not company employees, you should store their files separately from employee files along with other vendor files.
Best Practices in Utilizing Contractor Onboarding Software
If the thought of onboarding contractors sounds completely overwhelming, there are business management software programs that can help streamline your onboarding process, making it easier to get down to work.
Choosing the best onboarding software to meet your needs depends on multiple factors, but there are several common things you can look for in a quality program.
- User-Friendly Interface
- Remote Access
- Cloud-Based Technology
- Assessment Tools
- Reporting and Analytics
- Integration Tools
- Mobile Optimization
- Multi-Media Compatibility
- Workflow Management
- Email Reminders
While many onboarding software options are on the market, we found five that work well with onboarding freelancers and meet the criteria mentioned above.
Rippling is a global HR platform that can help you in every step of the employment process, from onboarding new hires to educating and supporting current employees and contractors to off-boarding team members when they move on.
Key Features:
Integration Tools
Remote Access
Cloud-based technology
Mobile Optimization
Help Center
User Friendly Interface
Pricing
Plans start at $8 per month
SAP Fieldglass provides a cloud-based Vendor Management System. Fieldglass helps businesses manage their flexible workforce with greater efficiency and clarity. By streamlining a business’s management process, this software will boost productivity and security.
Key Features:
Help Portal
Cloud-based technology
Data and Analytics
Remote Access
User Friendly Interface
Mobile Optimization
Pricing:
Contact the provider for a quote
Service Titan is a business management system for residential and commercial service businesses. This software offers a well-rounded list of features to help contractors manage every aspect of their business, from onboarding and training to client relationship management.
Key Features
Integration Tools
Workflow Management
Multimedia Compatibility
User Friendly Interface
Data and Analytics
Remote Access
Pricing
Contact the provider for a quote
Simpro offers time-saving automations to make managing employees and contractors quicker and more cost-effective. Their portal system makes onboarding and communicating with new hires, contractors, and clients easy.
Key Features
Employee/Contractor Portal
Integration Tools
Workflow Management
Multimedia Compatibility
User Friendly Interface
Data and Analytics
Remote Access
Pricing
Contact the provider for a quote
Practice Teams is your one-stop-shop for managing customer relationships and delegating tasks to your team in a collaborative space. As the company owner, you can customize how team members access and engage with your client roster and easily onboard new hires and contractors.
Key Features
Integration Tools
Workflow Management
Multimedia Compatibility
User Friendly Interface
Data and Analytics
Remote Access
Customization
Pricing
Starting at $99/month for 3 seats.
Advantages of Using Contractor Onboarding Software
Digitizing your onboarding process will make it more accessible and efficient, saving you time and money. Onboarding software allows you to automate many tasks needed to onboard freelancers, so you can focus more energy on running the projects that help your business grow. Another benefit of automation is that it greatly reduces human error by streamlining the necessary paperwork.
Common Pitfalls to Avoid in the Independent Contractor Onboarding Process
Onboarding is the most critical part of building a productive relationship with your flexible workforce. Avoid these common pitfalls when onboarding an independent contractor to start on the right foot.
- Failing to tailor the onboarding process
- Misclassification
- Heavy frontloading of information
- Failure to illuminate company culture and safety procedures
- Not asking for a contractor’s feedback
- Not automating data collection processes
- Not nurturing your relationship after onboarding
Tips to Mitigate Onboarding Errors
- Create a spreadsheet with the different types of contractors you work with
- Consider every aspect of each contractor: language, location, industry, role, and job hazards
- Provide essential information in a concise manner
- Keep paperwork to the essentials
- Streamline your process with software
- Invite freelancers to complete a feedback form once onboarding is complete
- Celebrate achievements and maintain regular communication
Enjoy a more positive and productive relationship with your vendors when you provide a good onboarding experience. Utilizing an onboarding checklist, atomizing software, and avoiding some common errors will set your entire team up for success and allow you to provide a better experience to your clients.
Want to bring your team interactions to the next level?
Practice Teams offers everything you need to manage your team and client relationships in one place. Book a demo today and learn more about this new offering.
