BE CLEAR ABOUT EXPECTATIONS
The first step in hiring a contractor in a supervisory or other high-level role is to be crystal clear about what you both expect in the relationship. “You should have a clear scope and mission for the role. How will you measure success? Is this a short-term role, or is it a trial for a full-time position? These are important questions that need to be answered,” says Nicole Cox, chief recruitment officer atDecision Toolbox, a recruitment solutions company. Define the role, including the metrics by which you’ll measure progress and achievement of objectives.
DON’T SKIP THE ONBOARDING PROCESS
Contract employees need to have a clear understanding of your company culture, policies, and practices to make their transition easier, so it’s a good idea for them to go through similar training and orientation as traditional employees. This is especially true if they’re supervising teams or leading important projects, to ensure that your employees are not put off by a lack of cultural continuity, Cox says. Make sure your contractor knows the stakeholders and the method and frequency of communication expected, as well as important policies regarding managing employees, handling challenges or crises, interacting on social media, and other areas.
ADHERE TO IRS GUIDELINES
Whenever you hire a contract employee, it’s important to adhere to IRS guidelinesto ensure that the person is truly acting as a contractor. Misclassification of employees can lead to expensive tax liabilities and penalties. There are three primary areas the IRS looks at when determining classification:
- Behavioral, including whether the company has the right to control how the employee does their job.
- Financial, including whether the employer controls the financial aspects of the job like providing tools and supplies.
- Relationship, including whether the worker receives company-sponsored benefits.
Backup of the contractor’s status, such as evidence of multiple clients, a separate business identity, and other signs of the contractor’s independence can be important if you need to prove to the IRS that the individual is a contractor. Hiring contractors through a staffing firm may also ensure they meet the criteria, but it’s a good idea to review IRS guidelines thoroughly and get advice from your accountant or legal counsel, especially if the person will be working primarily for your company.
Read the full story at The Secrets To Hiring Management-Level Freelancers | Fast Company | Business + Innovation