Management Systems
for Independent Contractors

Management Systems for Independent Contractors


As any business grows, there comes a moment when the skills and experiences of current workers are not enough. As a result, the company has to hire independent contractors who can help solve new tasks, share their expertise, and give their opinions on what can be done to help the business move forward. Who are these people, and how can their work be controlled and managed? Read out to explore!

Independent Contractors: Who Are They?

Independent contractors are individuals or companies hired to provide specific services for a limited period of time and act as representatives of their own businesses. For instance, a company might need a designer to create a new logo. There is no need to hire an in-house designer because the scope of work they will have to do is very small. In this case, inviting an independent contractor is a perfect solution.

The terms of their cooperation with the company are registered in a special document called the independent contractor agreement that includes such details as the duration of cooperation, services to be provided, deadlines, and payment for the whole scope of work. Not to miss any important detail while drafting this document, HR managers can use a free legal form online. These templates are created by professional lawyers and contain all the terms and conditions essential for effective and clear cooperation.

Independent contractors can work for several companies simultaneously and have flexible working hours.

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Management Systems for Independent Contractors

Since cooperation with independent contractors differs from that with employees, HR managers use special management systems to organize and control the workflow of this type of workers:

  • Gusto offers handy tools for managing independent contractors. Its contractor-only option means HR managers can pay contractors without complicated setups. The integrated contractor payments make tax filings simpler by automatically filing the necessary 1099 forms. In other words, independent contractors can get their money on time, while the company does need to deal with tons of financial documentation.
  • Bonsai is not just a project management tool but a user-friendly platform designed for independent contractors. Beyond proposals, contracts, time tracking, and payment processing, it also offers features like task management, where HR managers can assign tasks to contractors. Another significant feature is global payments; you can pay contractors in more than 180 countries, which makes the platform handy for businesses that hire international freelancers.
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  • Zoho People also extends its HR suite toward contractor management. It allows HR managers to organize and control the process of independent contractors’ work. Using the self-service feature, contractors can update their personal information, apply for jobs, and track their working time, which is very beneficial for HR managers as they do not need to do it themselves.
  • Upwork Enterprise is a platform that simplifies and optimizes the process of hiring and managing independent contractors. Its key features include the Talent Network, which allows businesses to pool and rehire favorite freelancers easily. Besides, compliance services help ensure that HR rules are followed and that contractors are correctly classified. Also, the Centralized Billing feature makes the organization of the payment process simpler
  • WorkMarket offers features like labor clouds, which allow businesses to categorize and manage groups of contractors based on skills, location, and other parameters. It has robust integration capabilities that allow syncing with existing HR systems. Alerts and reminders ensure that HR managers are constantly updated on project timelines. This platform also offers learning and development modules, which is useful for HR managers who need to provide training opportunities to new workers and independent contractors who have a chance to improve and upgrade their skills for free.

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How To Hire Independent Contractors?

The process of hiring independent contractors, even though the modern management system makes it very easy and comfortable for HR managers and workers, has its peculiarities and includes several simple steps:

How To Hire Independent Contractors?
  1. Create a clear and comprehensive description of the services they need from the contractor, the project scope, deadlines, and payment terms.
  2. Use various freelancer platforms to find potential independent contractors.
  3. Make a list, contact, and interview potential candidates to learn about their skills and experiences and understand if they are the right fit for the project.
  4. Once a suitable fit is found, draft an agreement that outlines payment terms, duration of the contract, confidentiality terms, etc.
  5. Assist the independent contractor by answering all their questions and providing everything they need to complete their part of the project.


If a company needs to engage new people in the team, managers often hire independent contractors for project work. Independent contractors may work for just a few hours and become a game-changer in your business project. However, to manage their work, companies need to use special tools that offer sanctions specific to the work of independent contractors: payments, flexible schedules, time tracking, and performance results. With the help of such management systems, the cooperation between invited contractors and businesses can be most effective.

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