In the rapidly changing dynamics of the modern workforce, independent contractors have carved a significant niche, especially within the US tech sector. The ability of these professionals to bring specialised expertise and flexible engagement models to the table is unparalleled.
Yet, as their prominence rises, so does the need for effective onboarding. A survey shows that 89% of employees with an effective onboarding process are engaged at work. It demonstrates the critical nature of structured onboarding, ensuring operational efficiency and fostering collaborative success with contractors.
But what does a contractor onboarding process look like? In this article, we help you with an independent contractor onboarding checklist that can facilitate a seamless employee experience.
Independent Contractor Onboarding Process
Latest research finds that almost 15% of all workers in the US (including minorities and youngsters) may be independent contractors. With this rise in engagement, it's imperative for companies to have a structured onboarding process for these contractors.
The process of global onboarding an independent contractor is more than just formalities; it’s about paving the way for a productive and seamless working relationship.
Here are the key steps that hiring a contractor checklist should include:
- Confirming the Contract Details: Before any engagement begins, ensure all contractual details are clear, agreed upon and signed by both parties. 83% of high-performing companies begin their onboarding process before an employee’s first day on the job.
- Setting up IT Systems and Permissions: Grant necessary system access, email setup, or any specialised software the contractor might need.
- Organising Onboarding Materials: Prepare any company literature, guidelines, or training materials to help the contractors familiarise themselves with the organisation.
- Welcoming the Contractor: A warm welcome can set the tone for the entire engagement. Introduce them to relevant team members and leaders with whom they will work. If you are virtually onboarding an independent contractor, start with a video call to introduce them to the team.
- Setting up Workstations and Tools: Ensure they have a comfortable workspace and all necessary tools ready to dive into work.
Role Clarification and Expectations
- Clearly Defining Scope of Work and Timelines: Your hiring contractor checklist must have a copy of the offer letter defining the scope of work. Establishing clear milestones and delivery dates is also necessary to keep the project on track.
- Familiarising with Tools and Software: When hiring for a technical role, specific tools or software could be integral to the role. So ensure the contractor is well-trained to use them. If not, assign someone they can turn to for questions or guidance.
Review and Feedback Mechanisms:
- Setting up Regular Check-ins: Periodic meetings help monitor progress and address any emerging concerns.
- Discussing Feedback: Seek employee experience feedback from time to time. This will ensure continual improvement and necessary changes to your hiring a contractor checklist.
Detailed Onboarding Checklist
An independent contractor checklist is not just a list of tasks—it's a strategic tool. It bridges the gap between contractual obligations and human interactions, ensuring the collaborative journey is marked by clarity, understanding and mutual respect from both employers' and employees’ ends.
Hiring a Contractor Checklist
- Interview potential candidates and select the one that aligns best with the organisation’s needs.
- Prepare an employment contract that defines the exact nature of the work and the date of salary payments.
- Assess the required skill set to match project requirements.
- Verify any licensing or certifications required for the role.
- Conduct thorough reference checks and review past work for quality assurance.
- Mention the compensation and employee benefits availed to the employee.
- Keep a record of applicable leaves and reimbursements.
- Maintain documentation of all the personal details collected from the contractor. This includes personal ID and bank account details.
- Research the local labour laws and regulations to maintain compliance.
- Mention the terms, conditions and abiding laws in case of disputes in future.
Hiring a Subcontractor Checklist
The onboarding checklist is similar when hiring for contractor roles. Here are a few things you need to keep in mind with subcontractors:
- Evaluate whether a subcontractor is essential for the project.
- Keep primary contractors in the loop to maintain transparency among the team about new joiners.
- Scrutinise the subcontractor’s qualifications for quality assurance.
- Define the work time and payscale to avoid any employee misclassifications.
A well-structured onboarding process ensures that the organisation and the contractor are on the same page from the get-go. It sets clear expectations regarding the scope of work, timelines and deliverables.
According to a 2021 study by the Society for Human Resource Management (SHRM), 68% of organisations with a solid onboarding process reported a higher success rate in achieving the desired output from their contractors within the stipulated timelines.
New Hire Paperwork for Independent Contractors
Paperwork forms the dominant part of the independent contractor onboarding checklist. Some findings reveal that 58% of companies focus on paperwork when onboarding new hires. The primary documentation includes:
Independent Contractor Agreement: This is a legally binding document detailing the terms of employment. It should include all the information about the job title, salary, payment dates and employee benefits.
Non-Disclosure Agreements (NDAs): Your independent contractors may be working for other companies at a time. So, to safeguard your company secrets, it is necessary to sign a non-disclosure agreement for security purposes.
Intellectual Property Agreements: To protect proprietary innovations and ideas, an IP agreement states who has the right to own the created property.
Undertake Compliant Onboarding With Rapid EOR
Organisations can ensure a productive and harmonious working relationship with their remote employees by meticulously following a hiring contractor checklist. A Brandon Hall Group study concluded that “organisations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%.” But some crucial details can be missed when you are hiring employees from multiple countries. It is best to seek assistance from a trusted global employer of record to smoothen the onboarding process.
Rapid EOR can help with 20+ years of local expertise for onboarding independent contractors in India. Our integrated HR platform has a centralised system designed to manage every aspect of human resource management. We have a tailored approach for every organisation's goals, from contractor onboarding process and training modules to performance tracking and exit processes.
We also offer comprehensive health insurance and localised benefits so you can experience great retention rates. Payroll management, especially in a foreign country, can be complex with local legal and tax implications. Our team ensures that all payroll processes – from salary disbursements to tax deductions – comply with Indian regulations.
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