Contractor Management Services allow businesses to get the contract labor they need without having to take on all the responsibilities that come with recruiting and onboarding contractor workers.
When a business considers bringing on temporary contract workers to get the help they need, they must also factor in whatever administrative costs come along with it such as processing applications, onboarding, and employment law compliance. Working with a third-party contractor management services provider eases much of this burden.
Over the last several years, “gig work” has become more prevalent. This brings up questions concerning how contract workers should be treated in regard to compensation, benefits, and safety measures. The government has historically intervened by enacting protections for workers.
If you’re at the crossroads of sorely needing more support staff, but not having the bandwidth to take on additional responsibilities, partnering with a contractor management provider may be the solution to move forward.
Why Do Companies Use Independent Contractors?
Traditionally, workers have been recruited for long-term employment, but “alternative working arrangements” (like contract work) have become more common in these modern times. So why are companies turning to ICs (independent contractors) instead of filling these roles with permanent employees?
Forbes estimates that employers will pay 20% to 30% in payroll costs for internal staffing. Employers are obligated to pay a share of Social Security, Medicare, and taxes while also paying into unemployment compensation insurances.
There is also the additional cost of benefits such as medical and dental. On top of these benefits, you pay the overhead of a Human Resources department to keep track of it all. When you bring on ICs to do the job instead, most of these expenses will be offset
Hiring permanent employees is an exchange of loyalty which makes it somewhat tricky to let employees go when they are no longer needed. With ICs, there is no expectation that the arrangement is long-term so it’s simpler to sever ties when it suits the needs of your business. ICs do not have the same protections as permanent employees, so this reduces the risk of lawsuits when you need to terminate.
Better Performing Workers
Ideally, contract work is “plug and play.” Workers have all they need to do the job, and they are already equipped to jump in and get started right away with minimal to no training necessary.
Why Do Companies Use Contractor Management Services?
A company secures contractor management services when they decide that contract work is more appropriate than permanent hiring for their particular business needs. Further, a contract management company will have vetted their contractors to ensure that they are fully prepared to start the job on day one.
Contractor management also involves risk mitigation by managing compliance with worker safety, properly executed contracts, and government regulations concerning worker classification.
Benefits of Using Adia for Management of Contract Labor
At Adia, we’re all about getting you the workers you need when you need them. Contract management is part of our on-demand service to fill those roles ASAP. We handle those complicated compliance issues on our end and match you with the most qualified workers to move your projects forward.
California Assembly Bill 5 (AB5) took effect in January of 2020. The objective is to grant some “gig workers” in California employee status. While this ensures labor protections for California workers regarding minimum wage, sick leave, and insurance benefits, this upended contract labor arrangements for some businesses.
In a partnership with Aida’s contract worker management, you get the benefits of contract labor without having to work out the details of AB5 classification. Because the contract worker works for Aida, you are not responsible for how they are classified. We’ve already taken care of that.
With a contract management service, hiring temporary workers en masse no longer means you have to do piles of paperwork and wait for all the contractors to return signatures before the work can begin. Our workforce is already onboarded and ready to do the job.
Say you needed 200 contract workers for a project. If you enlist the help of a contractor management company, you fill all these temporary positions without having to process the paperwork for all 500 workers. These contracts are with Aida and not your business.
Greater Visibility of Workforce
There is some understandable trepidation with hiring contract workers. How can you be sure that they will perform as promised?
Without transparency and accountability, we would not have the integrity necessary to ensure that we supply the best workforce solutions for our partners. For this reason, we created an intuitive platform that tracks worker performance.
Through our app, our clients have access to regular updates about what work has been completed. A dashboard of contract labor is at your fingertips with our all-in-one platform.
To Learn More About How Adia Can Help Your Company Stay AB5 Compliant:
Contact Adia for Contractor Management Services
At any point, new government regulations could add on another layer of complication for your everyday operations. Our goal is to keep staffing as hassle-free and streamlined as possible no matter what changes are brought forth in labor laws.
When you need more help on your time-sensitive projects, but don’t have the time or the resources needed to recruit, onboard, or lawfully secure talent through job boards, we are your solution. Aida provides the short-term workers with the proper back-end hiring protocols done for you.
When you have big staffing challenges on your hands, but you don’t know how to go about properly filling these needed positions, reach out to us for a free consultation. We’ll guide you through the staffing solutions that work best for you.