Companies are increasingly relying on freelancers and independent contractors to fill skill gaps. However, managing your workforce can be a huge hassle which takes away from the critical business functions and slow down your growth. Luckily, management software solutions are standardized to decrease costs, support efficiency in the field, and keep teams better connected.
Designed to streamline the management of freelancers, consultants, and independent contractors, the best software is easy to use, has a user-friendly interface, and allows for automated integration.
Here are the top nine benefits of using management software for contractors.
Table of Contents
Find the Right Talent
Having robust management software is critical to finding the contractors that have what it takes to do the best job for you. You’ll have the tools to build your custom talent pool of skilled workers without relying on expensive talent agencies. Moreover, once you have the experts on board, the software will keep a talent database to quickly find the right contractor for your next project without spending hours on research.
Effective Onboarding
With the right management software for contractors, all moving parts are centralized and streamlined, ensuring all contractors go through a standardized onboarding process compliantly and without much hassle. The paperwork is signed and uploaded to the platform, making it easy for HR and managers to access it when needed. In addition, management software can ease the offboarding too. It will help you create a systemized process for managing it and ensure you cover all of your bases when parting ways with contractors.
Ensure Compliance
When working with contractors, you must meet specific compliance standards or risk your business from a financial and reputational point of view. Using built-in workflows can help you track all types of compliance, including IR35, NDAs, SDC, freelancer classification checks, and IP alignment. It also collects the proper tax forms to ensure you’re compliant with tax regulations.
Streamline Invoices and Payments
Management software for contractors streamlines the invoices and payments, ensuring that workers are paid on time without errors between the parties involved. The system tracks timesheets, consolidates the invoices, generates a consolidated monthly invoice for you to approve, and then pays each contractor automatically.
Budget Management and Cost Reduction
Management software for contractors also helps the hiring managers make better-informed decisions. For example, they have insight into how much time was spent on a specific project and compare it to the number of hours worked.
Moreover, they can ensure the spending aligns with business priorities and avoid budget under- or over-usage, making a solid business case for the budget they need for the next project. Management software also enables to fully audit suppliers, comparing data like margins, spending, and day rates, and see if it’s possible to open up avenues to save money.
Increasing Productivity
The more contractors you hire, the more complex it becomes. As a result, good management software can help you centralize and streamline the workflow. For example, you’ll be able to track project progress, assign, track, and review milestones, assign available freelancers, track time, and more. This will relieve the complexity and reduce the risk of human error while boosting productivity.
Seamless Communication
Effective communication is vital when working with contractors, as miscommunication can affect the project’s success. The management software allows for accessible communication between contractors, team members, clients, managers, and stakeholders to connect seamlessly in one place. This ensures that conversations don’t happen in a vacuum and that everyone has access to all the information they need.
Better Visibility
A contractor management system will give you visibility into all of your company’s independent personnel. Each freelancer’s contact information, work history, performance, rates, and other details will be stored in a searchable database. As a result, you’ll have increased control over your workers, drive efficiency, and streamline your overall management and hiring procedures.
Reports and Analytics
One of the top benefits of contractor management software is the access to reports and analytics to measure the progress of each project. You’ll know exactly where your project stands at any given time and gain insight into the performance of each contractor worker. This will improve the decision-making process, streamline future project planning, and identify what needs improvement.
Final Words
Hiring contractors has numerous benefits for your business, but it also comes with some challenges. Managing your freelance workforce can be overwhelming, especially for complex projects. Fortunately, with management software for contractors, you don’t have to compromise on compliance and talent quality, waste valuable time on administrative tasks, and risk miscommunication. Instead, you can focus on your business goals while ensuring your team’s productivity is at its peak.
