How to Mitigate Risks When Engaging Independent Contractors

risks-independent contractors

Independent contractors have increasingly become an integral part of doing business, offering several benefits from cost savings to staffing flexibility. More and more businesses from various industries are realizing the advantages and increasing the use of contractors.

However, if not done properly, engaging independent contractors can cost your business. With misclassification being the top challenge, audits, liability and co-employment are other risks you may face when hiring contractors.

While there are risks, it doesn’t mean that your organization cannot hire and engage independent contractors. If an organization has the resources, it is possible to create a well-defined program, making sure all federal, state and local laws are followed. However, this can be a big task to take on and that is why many companies prefer working with a knowledgeable and experienced staffing partner.

When you work with a well-established staffing company like Stage 4 Solutions, the agency is the primary employer of the worker who will pay wages, withhold taxes, negotiate terms, provide benefits and workers’ compensation, and has the right to hire and terminate. In our over 20 years in staffing for primarily contract roles for over a hundred organizations, we have created well-defined policies and procedures that eliminate these risks.

Please download our whitepaper to learn more about the benefits and risks of engaging contractors and tips to mitigate risks to ensure your business remains competitive and positioned for growth with skilled resources.

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