December 2, 2016

Streamline IC Workflows Using Indpendent Contractor Management (ICM®) Software

Although the use of independent contractors can facilitate numerous operational and financial benefits to contracting companies, inefficient approaches to onboarding and compliance management have proven to hinder businesses in all industries from deploying independent contractors in a timely manner, limit economies of scale, and distract key resources from focusing on core business competencies. However, through the use of purpose-built ICM software, contracting companies are able to eliminate the burdens of back-office administration and compliance management; ultimately helping to streamline management workflows as it relates to onboarding and verifying ICs are qualified to provide services.

1. Onboarding

Traditional approaches to independent contractor onboarding typically consist of manual, inefficient, paper-based processes that overburden internal employees. While these cumbersome and time-consuming methods may have worked in the past, the increasing pressures to become more agile, efficient, and cost-effective have caused business leaders to seek out alternative solutions that will expedite the onboarding process and get independent contractors ready to provide services quicker.

When utilizing contractor management software, businesses leverage a web-based platform that works by capturing all contractual and compliance documentation in an automated environment. With the ability to create custom enrollment workflows that can accommodate a variety of complex compliance requirements, such as background screening, insurance requirements and various credentials, contracting companies are able to ensure a thorough IC onboarding process while also realizing greater operational efficiencies, increasing resource capacity, and significantly reducing potential compliance risks. Additionally, contractor management software, due to its web-based nature, allows all system users to gain quick, high-level insight into where independent contractors are in the onboarding process at any given time.

 

2. Supplemental Compliance Items and Tracking

Furthermore, contracting companies are able to collect supplemental compliance items such as driver’s licenses, vehicle registration, and certificates of registration while also tracking expiration dates directly in enrollment. Not only does this eliminate the need to ‘hunt down’ necessary documents after the contract has been signed, but it also removes the burden of ongoing, manual document tracking. In addition, contractor management software pushes out automated expiration notifications that alert contracting company administrators and independent contractors when a given document is 60 days from expiration.

 

3. Negotiation

In most cases, rate negotiation processes involve multiple in-person meetings or phone calls that require both independent contractors as well as contracting companies to spend excessive amounts of time away from the tasks and responsibilities that are core to their business. While this may seem like an unavoidable cost of running a business, the digital and on-demand nature of contractor management software enables both parties to significantly reduce the amount of ‘idle time’ spent negotiating their terms of agreement.

By leveraging web-based, interactive negotiations businesses are able to perform and document negotiations in real-time; ultimately eliminating the unproductive errands, like driving to and from meetings, that typically prolong the negotiation process. Additionally, with the ability to track all of the back and forth in the form of an audit trail, and capture the final rate in a document, contractor management software safeguards both parties from any ‘hearsay’ issues related to their agreement.

As the gig workforce continues to grow and evolve, industry leaders will look to adopt the resources and technology needed to drive greater efficiencies and better support business and market demands. While independent contractors have proven to facilitate significant operational and financial benefits to contracting companies, inefficient IC management has left many business leaders struggling with archaic manual processes, potential misclassification, and other costly errors.

However, by using purpose-built contractor management software, organizations are able to gain a competitive advantage by demonstrating to their customers that they’ve invested in a purpose-built software platform to better manage IC compliance and streamline workflow processes; resulting in increased ROI and more satisfied independent contractors that stay connected, compliant and contracted.

To learn how your organization can maximize the benefits of the IC business model, request a software demo.

Openforce

About Openforce

Openforce® is the leader in technology-driven services that reduce operating costs and mitigate risk for companies using independent contractors. Our cloud-based applications help companies and contractors alike achieve more sustainable, profitable growth by removing financial, operational, and compliance barriers to getting business done.