In many cases, contractors can be a far better option than full- or part-time employees. This is often the case when it comes to IT projects, as the roll out of new technologies can require skilled individuals for a period of weeks or months. Obviously, it’s not enough time to warrant going through arduous employment processes.
According to the New Zealand Ministry of Business, Innovation and Employment, hiring is something that’s not always carried out correctly. As a result, it’s especially important to hire in the right way. Contractors, as they bring their own tools and equipment – along with experience and knowledge – are a great choice.
Risk and reward
According to a report, Hiring Independent Contractors: Risks vs. Benefits, while there are numerous surface benefits to bringing contractors on board, the process may not always be a simple one. The financial risks can be serious problem if employers misclassify employees as independent contractors or vice versa.
For larger corporates, however, it’s a good idea to understand some of the best contractor management solutions. After all, in such large organisations it’s easy to overlook small issues that could balloon into larger problems.
Such solutions will become especially important as businesses continue to turn to new technologies. In fact, a 2015 Dimensional Research survey of 101 Australian IT decision makers found that an overwhelming number planned to deploy multiple cloud projects over the following 12 month period.
Below are three ways corporates can get help to better manage contractors.
Three effective solutions for contractor management
1. Payroll management
Sorting out correct payments is one area that can prove a minefield for organisations, especially those taking a number of contractors onboard at any one time. Payroll management is one of the better solutions, with the service from Oncore making it easy to process payroll at any frequency requested. The Oncore online portal also means there’s little difficulty obtaining PAYG payment confirmation reports.
Importantly, it’s a simple and flexible system for the contractor, and there is full status reporting with times and dates. Once in place, organisations can realise reduced ongoing administration and reduced risk of fraud.
2. Expense processing
Just because contractors bring their own tools and equipment to a job, this doesn’t mean they’re expected to pay for their other ongoing expenses. This is almost always the responsibility of the corporation. Oncore streamlines the expense management process with a system that can make a noticeable profitability difference.
It’s also a great way to give the organisation a real-time overview of where contingent workforce money is really going.
This system is quite simple, but very powerful. Firstly, contractors scan receipts and upload them for approval. Then, an approver receives a report showing all of the expenses. Clients then receive online capture as well as approval, along with centralised expense reporting.
3. Risk mitigation
Lastly, there’s risk mitigation. Oncore uses comprehensive insurance cover coupled compliant processes and extensive knowledge of contractors to reduce organisational risk. Oncore can also take on the full employment risk when engaging with contractors.
Occupational health and safety is another key aspect of risk mitigation, and it’s something that can prove difficult to manage with contractors. After all, they may not be taken through the same training and associated processes as employees.
Contractors, especially skilled IT contractors, are an especially useful option for larger organisations and large projects. Contractors mean access to a flexible, scalable workforce that can effectively be called upon when required. As noted above, however, it’s important to get management right. Reach out to Oncore Services to learn more about the services available.