5 Tips to Manage 1099 Contractors
More than 20 million people in the US are independent contractors. This means there’s plenty to choose from, and there’s some very good reason to use them instead of salaried employees. For example, you only need to pay independent contractors for a specific volume of work, and independent contractors will usually have all the tools they need to do a job.
Project management involving 1099 contractors will usually take a degree of team management to get the desired results. Follow some simple steps, and you are already closer to getting the completed job you’re hoping for.
1. Set Clear Expectations
It’s a good idea to set expectations when working with anybody, especially 1099 contractors. You need to make it clear exactly what you need to be done and how it needs to be done. This should also include details on which materials are to be used and make them aware of limitations on working hours or other restrictions.
With expectations set, the contractor can then set about their task in full confidence that they’re doing what’s expected of them. If you don’t set expectations, the contractor could become confused and not fully understand the scope of the task. Such poor project management can result in a poorly done job.
Good team management also involves communicating clearly during the job as well as well as before. If there are any updates or changes to what you need, let the contractor know as soon as you know. And remember that if there are changes to the plan, you should pay the contractor according to what you agreed upon initially.
2. Use a Time Tracker
It’s usually a good idea to track how much time remote employees are working on tasks, especially if they are being paid by the hour. Let contractors know that they are being monitored, and it can help to prevent any temptations to take liberties with your time.
Using a time tracker like the PK4 TimeTracker can also help with project management for other reasons. For example, a time tracker will help make it easier for you to keep accurate records of how long remote employees have worked for, which helps when it comes to invoicing and accounting. A time tracker can also help you see if time is being spent well, potentially helping you make changes that will help you make contractors more productive. And you can make it easy by giving your contractors access to a mobile or web app, so that the learning curve is smoother.
3. Create a Contract
You should always create a contract before any work gets started. The contract should include details such as the scope of the work involved, the materials used, and the overall cost of doing the job. A contract should also help you provide guidelines that will help you measure the contractor’s performance and set limitations on what the contractor can or cannot do.
With the scope of the task and other details officially noted, the contractor can go ahead and start work with confidence. If, for whichever reason, the terms of the contract are not met, then you both have an option to take a legal approach if necessary.
4. Don’t Micromanage
Good team management often involves standing back and letting the professionals do what they’re good at. If you’ve recruited a professional with a solid track record, then you should have confidence that they can do what they’re skilled at without your supervision.
Micromanaging is only likely to lead to frustration, and the contractor’s productivity could take a hit. Micromanaging is also likely to be time-consuming and potentially frustrating for you, and it’s unlikely to provide any benefit.
And remember that in most cases, they’re the expert, and you are not. While you might have an idea of how a particular job should be done or how long it would take, the person with the skills and experience is far more likely to be correct.
If you want to know how your contractor is progressing, then it’s fine to request the occasional update. Depending on the nature of the job, daily or weekly updates may be ideal.
5. Pay Them Well
It can be tempting to choose a cheap contractor to save money, but it’s usually a bad idea. A skilled contractor will want to be paid what they’re worth, meaning somebody willing to do the job on the cheap is unlikely to have the required skills and experience.
While a cheaper contractor might cost you less, you’re running the risk of having to pay a lot more in the long term. In some cases, the job might need to be redone entirely, which, of course, means paying another subcontractor. Depending on the task, the wrong contractor might even cause damage that will cost even more to rectify.
While you should pay well, it’s also fine to make sure you don’t overpay. Ask around to see what the going rates are to get an idea of what it will cost.
Independent contractors are the ideal option for various tasks, and they’re best used when there’s a single job to be done. However, it makes a lot of sense to choose the right contractor and manage them effectively.
One of the key factors that will help you manage contractors is communicating clearly with them. Set expectations, clarify what you need to be done, and create a contract to confirm what you need in writing. It’s also best to avoid micromanaging contractors and instead ask for the occasional update on their progress. You can also use a time tracking app to monitor how long they’re working, including remote employees, which will help prevent disputes and make things easier when it comes to invoicing.
Perhaps one of the most important aspects is to pay a good rate. Paying well will help ensure you hire a contractor that knows what they’re doing and can get the job done properly at the first time of asking. Otherwise, you’re opening yourself up to the risk of more inconvenience and more financial cost.
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