Mistakes Companies Make When Managing Multiple Contractors, Consultants & Freelancers

Outsourcing contractors, consultants, and freelancers is rapidly gaining popularity in the U.S due to the time and cost-saving benefits they provide along with their specialized expertise. In fact, approximately 42 million of the U.S. workforce consists of freelancers, with this number set to expand further due to the prevalence of remote working during the COVID-19 crisis.

If your business is considering leveraging the help of multiple contractors, consultants and freelancers it is important to understand that managing too many at once may become problematic due to the lack of face-to-face meetings, and the ability to switch priorities as quickly as an in-house team member.

To help you along the way, here are some common mistakes you should avoid when hiring multiple contractors, consultants, or freelancers to work for you.

Not treating them like your employee

Common mistakes companies make when outsourcing multiple contractors, consultants and freelancers is not fully treating them as an employee. It is important to introduce them to other team members and make them feel part of a team so they can grasp a sense of your brand identity and be fully empowered to go the extra mile, their expertise should be appreciated. 

Inconsistent processes 

Differing and irregular back-office processes when managing multiple contractors, consultants, and freelancers can cause friction. You should ensure that your payroll and onboarding/offboarding processes remain consistent and on time, just as you would with a regular internal worker. 

Not defining clear job roles 

A problem which arises from managing multiple outsourced workers is lack of awareness of their separate responsibilities, you cannot expect them to go over and beyond or blame them for doing too little if they are not fully aware of their responsibilities. You must create clear accountability for each role and define the key tasks and expectations. 

Not setting expectations

Setting an end goal is crucial when managing multiple outsourced roles, in order to measure success. If companies do not set expectations at the start freelancers may go off track, therefore it is important to hold them accountable and communicate regularly.

Holding monthly, weekly or bi-weekly meetings or requiring reports is an effective way to track their progress and ensure they stay fixated on a common goal. Set timelines, deadlines, and key metric goals in order to stay on track.

Clearly defined project requirements will result in cost reductions in terms of time and money due to increased productivity and in turn, develop a more trusted relationship.  You should consider project management tools such as Asana, or Trello in order to define and track project requirements, which otherwise may become tedious when managing multiple contractors. 

Not defining who they report to

If you manage multiple external contractors, consultants, or freelancers they may have to report to various people which may become overwhelming and leave them feeling like they have a lack of direction which can result in confusion over what tasks to prioritize. It is important that they are aware of who they will be reporting to in order to cut out waiting times on multiple responses. 

Lack of communication

Lack of communication can be a common downfall when managing multiple contractors. You should provide precise instructions and regularly check in to see their progress and keep them motivated.

More so than ever, companies are considering engaging freelancers due to the uncertainty the pandemic has created but in turn, it has left no excuse to not communicate virtually with internal and outsourced workers due to the increased relevance of Skype  or Zoom for video chats

Hiring too many contractors, consultants or freelancers

Some companies may outsource too much staff, in particular consultants. This can get messy and may leave you pondering which opinions are most trusted and valued? You may end up favoring one contractor over another and not fully realize the efforts of them all.

You must have a clear end goal and choose one strategic direction that all your freelancers are working towards in order to streamline operations to achieve the best result.

Lack of reporting 

Measuring success is not possible without metrics and communication. If you manage multiple contractors you may find yourself struggling to track the progress of each individual, leaving you unsure if your money is well spent on efficiency.

Consider asking them for a report on what they have achieved and the key tasks they have completed in order to be aware of what is going on.  

Key takeaway: streamline the way you manage multiple contractors, consultants or freelancers to build a mutually beneficial relationship

Overall, the question of how a company should manage contract workers differs according to management styles. Streamlining the way you manage contractors, consultants or freelancers involves effort and preparation. However, if you avoid these common mistakes you are almost guaranteed to receive a valuable and skilled addition to your regular team.