5 Tips for Hiring Independent Contractors

Engaging an independent contractor differs significantly from hiring a full-time employee. Generally, full-time employees are ideal for ongoing business needs that align closely with your company’s core competencies. Independent contractors, however, provide flexibility for project-based work or when you require specialized expertise for a specific deliverable.

Understanding when to utilize each type of talent is crucial, as is knowing how to effectively recruit and hire for each role. Here’s a more detailed look at the differences between employees and independent contractors:

Employees vs Independent Contractors

Full-Time Employee: A person who works for a single employer. The employer dictates and controls the work performed as well as the hours and location of work. the employee is entitled to company benefits, which may include stock options, 401(k) matching, paid time off, or health insurance. They are also entitled to legal benefits of a W-2 employee including Unemployment Insurance and Workers’ Compensation.

Independent Contractor: A person who operates as an independent business and may perform work for multiple clients. Independent contractors dictate when, where, and how they complete the work outlined in their contract. They typically submit an invoice for completed work and provide their own tools and equipment. They are responsible for both the individual and employer side of taxes (FICA). They are not entitled to company benefits.

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5 Tips for Hiring Independent Contractors

1. Create job descriptions for independent contractors

Here are some ground rules for creating job descriptions that are specific to independent contractor roles:

• Don’t take an old job description that was used for a full-time employee and post it as a contractor role.
• Market the project scope in addition to the desired skills to make the opportunity attractive to the right audience.
• Make it clear which skills are required versus nice to have. That will help talent identify if they are qualified for the position.
• Advertise a title that will make sense to the audience you are hoping to attract. Titles are sometimes the very first thing talent sees when looking through a list.
• Use an internal title to advertise a project role.

When writing a job description for an independent contractor, consider your audience. Independent contractors are looking for control over their schedule, good work/life flexibility, and the opportunity to work on projects for a company that respects their skills.

Be sure to include information about what it is like to work as an independent contractor for your company. For example: What is interesting about this role, and why would it appeal to an independent contractor? Consider the title you’re associating with the job. Does it accurately reflect the role? Avoid using an internal title that won’t resonate with people outside of your company.

When it comes to payment, it’s a good idea to list the bill rate if it is absolute or if you know the market for the skills you are looking for. If you are unsure what the market is or if your budget is somewhat open, consider listing a rate as negotiable. This will help you get an idea of what the market rate is for a skill set.

As much as possible, specify project details and traits you’re looking for. This may include:

• Experience: Rather than focusing on years of experience, look instead at what experience the contractor has. When it comes to project work, what matters is the type of projects the contractor has done.
• Skills: Include “must-haves” as well as “nice-to-haves.”
• Duration: Provide details on the expected timeline for the project.
• Travel: List travel requirements, if applicable, and whether or not travel is reimbursed.
• Deliverables: Give an overview of what work you expect the contractor to complete, or goals you want them to achieve.
• Required licenses or certifications: Specify any necessary qualifications or credentials for this role.

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2. Post your job listing in the right place

This may sound obvious but be sure to post your job description in the right place. For example, avoid using a FTE job requisition to advertise a contract role. Independent contractors usually won’t check the career page or your website for job opportunities, as contract roles are rarely listed there.

Instead, consider using an online marketplace designed specifically for contract work, or a clearly labeled section of your website for contract projects. Marketplaces are an increasingly popular way to post jobs, source, and self-select talent. Typically, an independent contractor will fill out a profile and then apply to or be matched with positions that fit their skillset. Independents are often familiar with using marketplaces, and posting your job in a place where they are actively looking for work is a smart move.

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3. Learn how to review independent contractor resumes

When it comes time to review resumes for your job posting, remember that the work history for an independent contractor will look different from that of a typical employee. For example, it is common for independents to organize their resumes by skill rather than in chronological order. This allows them to highlight their expertise.

If you don’t find a specific keyword or skill you’re seeking, don’t assume the candidate lacks that experience. Many independent contractors have extensive careers and possess a diverse range of skills. When in doubt, reach out and ask.

Also, if you see past job titles on a resume such as “Senior,” or “Director,” don’t let this deter you. In many cases, independent contractors have grown through the ranks at a large company and have now branched out as a business of one. It’s wise to focus on the contractor’s ability to do the project as opposed to the number of years of experience they have in a certain area.

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4. Nail the interview process

Before interviewing a candidate, review their portfolio to ensure it meets your standards. During the interview, use a consistent set of questions for all candidates to ensure accurate comparisons.

Mainly, focus on the projects they’ve completed in the past. Are the projects they’ve completed in the past similar to the work you’re looking for? How well do you think they will be able to perform? Also, make sure to be punctual for interviews and set clear expectations about whether participants should be on or off video. Last-minute cancellations from either side can leave a negative impression.

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5. Maintain hiring momentum

When hiring an independent contractor, it’s important to maintain momentum throughout the recruiting process. After receiving submissions from your job postings, try to review resumes within three days and provide feedback to candidates (interview or no interview). This is also a great time to provide feedback to your recruiting team so that they can target the right candidates moving forward.

Make sure to quickly schedule interviews for selected candidates. Avoid the black hole: submissions going in but never coming out with feedback. This can damage your company’s brand within the independent contractor community and make them think twice before applying again. In today’s competitive market, top contractors are more likely to engage with brands that respond promptly, enhancing your chances of securing the best candidates for your projects.

6. Ensure proper follow-up

Conduct second-round interviews within one week of the first interview if at all possible. Keeping talent moving along quickly will help make sure you can work with the people you want. After all, independents are always eager to keep their business pipeline full. If they don’t hear back quickly about a potential project, they will move on to the next opportunity. This is a fairly different approach than a full-time employee who may have the ability to sit in their current role until they are offered a new one.

Finally, present offers within five days of the second interview. Don’t forget that your contractors who are interviewing are likely interviewing with multiple buyers.  When you find the right talent for your organization, move quickly.