Hiring contractors is a proven way to give your company an advantage in the market. Without a doubt, a freelance workforce is a blessing for businesses wishing to scale up and down and fulfill project needs more quickly than before. Learn the main benefits and advantages of using a contractor management system and the top reasons to use contract management software.
However, if your company employs ten or even more contractors, managing them could be a challenge, since complex processes might hinder your team’s production.
So how can you make the most of the knowledge and experience your contractors have to offer without drowning your team in administrative red tape and managerial responsibilities?
You’re in luck! The days of doing things the old, boring way are over. Eliminating these freelancing management problems is now possible with professional contractor management software. A tool of this kind can help you find, onboard, manage, and pay your independent contractors.
This will help you simplify your workflow and streamline your business processes.
Read below to find out the 4 main benefits of implementing a contractor management system in your business using a contract management software.
Quicker Results
Hiring new employees can take up to 30 hours on a monthly basis. Hence, it’s no surprise that HR reps try to cut corners wherever they can. In cases like these, a freelance management system (FMS) becomes crucial.
Originally, HR professionals had to use time-consuming and labor-intensive spreadsheets to keep track of their freelancers or independent contractors. With contract management software, you may quickly see who is available for work.
Utilizing an FMS eliminates the need for spreadsheets and provides real-time access to the same data for all parties engaged in the hiring process. Instead, you can easily find the right people by researching their location, pricing, availability, skills, and more.
The sooner you get this data, the sooner you can start narrowing down potential applicants and getting your project off the ground using a contractor management system.
More Compliance and Simpler Onboarding
It is crucial to quickly acclimate contractors to the role and project allocated to them and the team culture. For this reason, it helps to use a simple and uniform strategy. Depending on the task, there can be all kinds of documentation you and your contractor need to dig through.
Background checks, contracts, NDAs, non-compete clauses, intellectual property rules, legal compliance, taxation, employee categorization, etc.
Still, an FMS may automate and customize these procedures, reducing the time spent on onboarding-related administrative tasks and improving the contractor’s experience.
Contractors place a high value on a smooth onboarding process, yet only 12% of companies really excel in this area. And still, retention is impacted by how well an organization onboards new workers and contractors alike.
Timely Compensation: Contractor Management System Benefits & Advantages
About 70% of contractors report having problems being paid, and shockingly, 31% of businesses fail to do so on time. Don’t let your company get a bad reputation for being a slow payer as some of those others have. Otherwise, you run the danger of having contractors eventually refuse to work with you.
Inadequate planning and cumbersome manual processes may also contribute to payments being late or not being made. Automated solutions that accommodate contractors working in a variety of time zones and currencies make this obstacle trivial to overcome.
A well-designed FMS makes it easier for all parties involved to keep tabs on the progress of invoices, approvals, schedules, payments, and status updates. Independent contractors may submit or create their own invoices for services performed over a certain time frame.
Then, the invoice may be reviewed and accepted by the company’s accounting department.
Most contractor management systems also allow users to pay bills in bulk, which is another time-saving feature of a contractor management system.
Compatibility With Other Tools
A customizable FMS should be compatible with the current software you use. You may save time and effort by transferring the data from the old spreadsheets into the new FMS. In general terms, a powerful contractor management software will be able to work with:
- Excel
- Google Calendar
- Google Sheets
- Your banking systems
- Your internal communication systems.
Simply put, a wide range of seamless interfaces should make it easier to deploy your preferred FMS system.
Contractor Management System Final Thoughts
You can source, onboard, manage, and pay your freelancers all from the same place with the aid of a flexible and powerful software solution. As a result, you will spend less time on administrative tasks and more time managing your expanding freelance workforce.
There is no longer any need to search through file cabinets or fiddle with spreadsheets to get what you need. Instead, everything you need is conveniently gathered in one location.
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