If your organization is not already using a marketplace to source independent professionals, you may be missing out on a vital portion of the talent pool. Freelance marketplaces—online platforms that connect independent contractors with projects—are quickly growing in popularity. As many as one in five independent contractors said that they had used a marketplace to find work in the past year, and 25% said they intend to use a marketplace to find work in the coming 12 months.
Freelance marketplaces can additionally help match the supply and demand of labor, lower recruiting costs, and reduce time-to-fill. However, when evaluating a marketplace, organizations must proceed with caution.
Whether you’re looking for an online consultant marketplace for the first time or you are already working with a marketplace provider, be sure to ask these five questions to ensure you’re gaining the maximum benefit, as well as protecting your enterprise from misclassification risk.
If the worker you engage as an independent contractor via a freelance marketplace does not meet a myriad of federal and state qualifications, your company will bear the risk of misclassification.
Many online consultant marketplaces today simply match clients to contractors. They don’t provide qualification services to ensure that the workers are, in fact, self-employable. As a result, they aren’t enterprise-ready. Independent contractor classification is a complex topic, dependent on many federal and state-level tests, laws, and guidance documents, and enterprises must adhere to these laws—no matter which consultant marketplace they use.
It is therefore very important to do your research and ensure the provider you choose to work with is fully vetting independent contractors. MBO Connect®, for example, is the only direct sourcing solution that’s backed by the proven independent contractor compliance vetting and engagement expertise of MBO Partners. MBO offers four distinct engagement options that are designed to appeal to a broad range of independent work engagements and worker types. Our qualification process is current and extensive. Before a contractor begins work, we offer a thorough due diligence process to ensure compliance with state and federal contractor classification requirements.
The onboarding process can often make or break the engagement experience for independent contractors. You have to find that balance between crafting a positive experience, and getting projects up and running quickly. For example, in order to properly manage risk, it is important to ensure that independent contractors you wish to engage meet necessary insurance requirements.
Independent contractors value freedom, control, and flexibility in their work; an online consultant marketplace that provides an accessible system that automates tasks such as onboarding, payment, and engagement documentation can help create that positive experience both for talent and your company.
When independent contractors are satisfied, productivity and interest in re-engagement increase. MBO’s onboarding process is customized to meet client requirements and ensures those requirements are followed throughout the entire lifecycle of the engagement. Our unique onboarding site educates contractors on the engagement process and accelerates enrollment time, ensuring compliant engagements and a quick start to your projects.
Not all marketplaces are able to integrate with existing procurement systems. To avoid incurring additional expenses, dig into the technical capabilities of the freelance marketplace you’re considering. For instance, MBO Connect seamlessly integrates with leading VMS technologies such as SAP Fieldglass and Beeline to distribute job postings directly to known talent pools, enabling faster talent identification and engagement.
In addition to getting independent professionals to work quickly and compliantly, you want to ensure that the process is a pleasant experience for both the client manager and the talent.
MBO provides additional value-added benefits for independent contractors, such as access to portable benefits and a dedicated business manager to offer proactive service and advice. Providing independent contractors with back office support enables a positive engagement experience and sets the precedent for a positive working relationship. Flexibility, control, and pursuing passions and projects they enjoy are the top reasons workers go independent, according to our 2017 State of Independence in America report.
Freelance marketplaces tend to disintermediate a direct working relationship between independent contractors and the enterprise. That type of transactional exchange doesn’t foster a desired long-term collaborative relationship built on trust and cooperation. Your online consultant marketplace should work to create a growing pool of talent that can expand with your company’s needs. Independent contractors who are satisfied with their client relationships are more likely to return for future work. Re-engagement with proven contractors will save organizations time and money.
With MBO Connect, managers can post opportunities for contractors to immediately respond to, run a search to find talent, or let proprietary algorithms send talent matches to their inbox. By working with a vetted pool of independents, organizations can quickly and easily start projects and re-engage known talent, all with the peace of mind that comes from a compliant, seamless engagement experience.
Interested in hearing more about MBO Connect? Contact us today.
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