Compliance Risk Assessment Tool for Independent Workforce Engagement

By MBO Partners | January 11, 2024

consultant paperwork

Key Points

There are many factors to consider when assessing a company's risk for misclassification.

Creating an effective contingent workforce management program requires buy-in and support from leadership.

Knowing your company's risk level can help you identify gaps in program management and areas where compliance needs to be implemented.

Because there is risk associated with hiring independent contractors, preparation is key. Often, misclassification can be unintentional because businesses simply do not have a full understanding of the laws regarding how to classify their workers. However, it can also be done intentionally to reduce labor costs or avoid payroll taxes.

Regardless of why misclassification occurs, it can result in many negative consequences like legal battles and costly fines that can be detrimental to businesses. 

Creating an Effective Contractor Management Program

There are many factors to consider and many steps to take to create an effective program. These include:

  • Support from executive leadership
  • Company-wide policy creation
  • Engagement criteria creation
  • Creation of processes to ensure fast onboarding time and payment
  • Identification of key program management staff
  • Program cost analysis
  • Implementation of contractor-friendly technologies
  • Adoption of clear communication strategies
  • Retention of on-demand, high quality talent

Our Independent Consultant Program Preparedness Self-Assessment tool measures your company’s ability to implement a contractor management program.

Risk Assessement Tool

After you complete the survey, you will be able to:

  1. determine if your program is well positioned and sustainable
  2. quantify your risk levels
  3. identify how your program will be adopted
  4. advise on steps to take to ensure that your program is successful

Use our tool as a helpful guide in assessing if you are ready to hire and manage contingent workers.

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