Australian businesses, like many global businesses, have experienced significant changes in the approach to how the workforce is made up and managed. With the increase in contingent workforce numbers, there has been a noted increase in contractor management outsourcing. A major driver in this change has been the growing complexities of juggling various types of employees, most often in the form of a full-time, part-time, job share, short and long-term projects and satellite workers.
About outsourcing contractor management:
A way of combating this is through a third-party contractor management company; outsourcing of temporary workers, specialists, contractors and consultants are becoming more common as companies realise the benefits. Contractor payroll and management outsourcing is a growing trend among corporates as a solution to managing the back-office complexities that come with a large contingent workforce, which greatly minimises risks and takes administrative pressure of HR departments. This is because, by law, contractors need to be managed in a very different way than your permanent employees, which most often results in HR departments feeling that added burden and risk.
Employing contractors can be complex with specific legislation covering everything from how contracts are drafted to how employment and payment are structured. Due to this, companies often find having access to someone with an expert understanding of these compliance matters and who can help ensure financial and contractual risks are minimised is preferable to managing it in-house.
7 Reasons why you should consider outsourcing your contractors’ management:
- Payroll Administration and fulfilment:
A Contractor Management company will take care of the payroll for your contractors. - Reduced internal on-costs & overheads:
Your internal time will be massively reduced by having all your contractors handled by one external entity, all compliance will be looked after in one place, one pay run rather than several, external front line teams answering the day to day questions around their invoicing and payments; they can even assist with onboarding. Plus as a bonus for the contractor, through a Contractor Management company’s services like Salary Packaging, your Consultants/ Employees can help them increase their net income without you having to increase their rate of pay. - Insurance Coverage:
A Contractor Management company can save your company’s time and money by covering your Contractors/Freelancer/Consultants for Workers Compensation & Professional Indemnity; inadvertently also saving you the time and costs with the administration involved. This also alleviates you of any responsibility, liability or increase in your premiums if a claim is made plus the handling of the claim itself. - Contract setup and Administration:
A Contractor Management company provides contracts to all parties involved, individually drawn- up to suit the requirements of both the company and the Consultant/Contractor/Freelancer and will assist your company in managing and running all your contractor’s administration. - Workforce Flexibility:
You can engage your workforce based on your needs and requirements. Whether it’s for a short-term or long-term contract, appoint your workforce with the terms that suit you and your company. - Government changes and updates:
A Contractor Management company will keep you fully informed with any changes to the government rules and regulations that may affect your Employee/Contractor/Consultants. - Elimination of The 80/20 Rule: By working through a contractor management company you alleviate yourself and the contractor of the 80/20 Rule (personal service income rule), this allows your contractors to work without time restraints for your organisation.
Our friendly and helpful care team will show you how contractor management can benefit your business… talk to us now…
