Although there are several benefits to hiring contingent workers,
there are also challenges to be aware of. One such disadvantage is that
managers often have less direct control over contingent workers.
Contingent workers often set their own hours, and are responsible for
managing their own projects. Any specific demand for availability or
adherence to processes must be clearly outlined at hiring, otherwise the
contingent worker will have the freedom to fulfill their obligations in
the way that they see fit. For some managers, this lack of direct
control can be a problem.
Contingent workers may also create issues relating to loyalty,
commitment, and ownership. Generally speaking, contingent workers are
dedicated to their projects, not to the company itself. And because they
may be working for more than one company at a time, they likely will
not push themselves to go anova and beyond what their contract specifies
to ensure the success of your business.
There are also tax risks in hiring contingent workers. Tax
documentation can be complex and confusing, and if an employer
accidentally hires an employee as a contractor, they may end up facing
steep fines and penalties—in addition to paying missed employee taxes.
When working with contingent workers, be aware that if your professional
relationship changes and the worker becomes a true employee, you’ll
need to update your tax information accordingly.