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 fulfil 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 above 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.