4 Best Practices for Hiring Contractors & Freelancers in 2022

Companies today have a myriad of options to choose from when it comes to hiring talent. They can hire full time employees or freelancers, and they can even hire remote contract workers. But how do you know which classification of worker will best suit the needs of your business? And how will you ensure the legality of your hiring and payment processing? 

Businesses are increasingly turning to freelancers and extended workforces in lieu of full-time employees. Many are making this change to save money and get the best talent for their needs as more professionals seek independence. As more companies adopt this strategy, the need to develop best practices for hiring contract workers becomes even more important.

In this article, we’ll examine four best practices you should consider for hiring freelancers, contractors, and remote workers in 2022.

1. Invest in Human Resources Tech for Safety and Inclusivity

Safety and inclusivity should always be top of mind when you’re thinking about how to best manage your workforce. After all, your workers are the lifeblood of your company. So, it only makes sense to invest in HR technology that will help keep them safe while keeping your company safe from compliance risks.

Technological advancements are only speeding up in 2022, and businesses will have to integrate them to keep up. Here are 5 ways the gig economy has already changed in 2022.

Remote work is not only shaking up people’s lives, but it’s changing the very foundations of what is possible for businesses. Human resources and hiring has changed forever due to the rise of remote and contract work, and so has the technology that supports these changes. It’s critical for companies to utilize HR technology that creates the infrastructure to easily and safely allow workers to be independent.

AI can help you get the worker you want without having to worry about government agencies and biases

Blockchain and artificial intelligence are now used to make hiring decisions, which allows companies to be more inclusive about who they bring on board for remote work opportunities. A workforce management platform that uses AI can also help you avoid worker misclassification.

GreenLight uses AI to effectively determine the correct worker classification, and we either make them an employee of GreenLight or we contract with them as an approved contractor. 

The Future of Work is here. When you allow new human resources technology to do the heavy-lifting for your business, you are able to hire a diverse set of contractors and remote workers in a fraction of the time without risking compliance.

2. Ditch Antiquated Staffing Companies

Deciding where to hire freelancers, contractors, and gig workers can be difficult. With so many options out there, you don’t want to waste time on workers who don’t meet your standards.

In order to get the best talent, you need to ditch the old-school staffing companies. When asked about predictions for the Future of Work in 2022, our founder and CEO, Jason, said: “Lots of niche talent marketplaces that focus on one single job function will be born.” Talent marketplaces, especially those focused on specific job functions, have left traditional staffing companies in the dust.

The traditional staffing agency model is broken

“It is time for a change. Our industry needs to start separating recruitment and employment,” says Chuang in The Broken Business Model of Staffing Agencies. 

If you’re one of the many companies that has been burned by traditional staffing agencies, it’s time to try something different. It’s a whole new world for employers and employees alike, now that the internet has given everyone an equal opportunity to find jobs and apply for them. 

Talent marketplaces have taken over talent sourcing

Top talent is out there ready to be hired. A good way to find remote workers is through a freelancing platform like Toptal or Upwork; these platforms quickly match you with quality professionals for all your hiring needs. To learn more about the best places to hire freelancers, contractors, and gig workers, click here to check out one of our recent articles where we do a deep dive into today’s top choices.

In 2022, you can find the right people and hire them the right way without a staffing agency. With the addition of an API compliance layer like GreenLight safely managing your contingent workforce, you can hire and pay top talent safely, effectively, and efficiently.

3. Utilize Cybersecurity Tools

Cybersecurity has become a major concern for businesses, and it’s important to use the right tools when hiring to avoid security breaches. While many people think cybersecurity is only an issue in tech companies, that couldn’t be further from the truth. When it comes to hiring, you’re dealing with some of your worker’s most personal information and security could not be more relevant.

When hiring remote workers, one of the best ways to avoid cybersecurity breaches is identity verification. People will make profiles with someone else’s identity, and this can be both costly and threatening to any business.

The internet is full of people waiting for any opportunity to take advantage of your remote workforce

According to Varonis, the average cost of a data breach is $3.86 million as of 2020; and in their 2021 predictions they state, “Remote workers will continue to be a target for cybercriminals. As a side effect of remote workforces, cloud breaches will increase.”

Don’t make your company a target by hiring without cybersecurity tools in place such as background checks through AI-powered Checkr. GreenLight accommodates a seamless plug-in to industry leading systems, like Checkr, in order to keep your technical workflow running smoothly and safely.

4. Avoid Misclassification at All Costs

Employee classification debates have grown over the years, and 2022 promises the conversation won’t slow down any time soon. In 2022, knowing the difference between an independent contractor and an employee is vital knowledge that could save you from huge fines and committing a federal crime. Here’s a recap of major worker misclassification litigations in 2021.

The IRS, Department of Labor, and state agencies are cracking down on companies that misclassify workers as independent contractors. In early 2022, the U.S. Department of Labor announced that it plans to add 100 investigators to its Wage and Hour Division in order to support its enforcement efforts, which include protecting workers’ wages, ensuring compliance, and combating worker misclassification.

Here’s how to handle worker classification in 2022. Helping you avoid misclassification is one of GreenLight’s specialties. We provide the technology and resources needed to ensure that your hiring workflow is legal and workers are always paid reliably, seamlessly, and on time.

Bonus Best Practice: Offer Benefits

While you want your extended workforce to be flexible, you also want to make an attractive offer and create a great experience like you would when hiring an employee. Providing simple and easy onboarding, great HR, and even benefits can make you really stand out as a client to independent contractors. When you hire using GreenLight, you can compliantly onboard your freelancers in minutes and then effortlessly get those who qualify registered for perks such as professional liability insurance, 401K, and even health care. 

Book a demo to speak with GreenLight’s team of experts about how we can help you automate your workflow so that you can focus on growing your business and tackling projects!

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Alex Steeno

Alex Steeno

Senior industry analyst, adviser of multiple hypergrowth agencies, SaaS, and tech-enabled service platforms, Alex Steeno regularly contributes insights related to industry trends, growth marketing, and management consulting.

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Mastering the management of today’s 50 million freelancers and contractors is no simple task. That’s why we created GreenLight.

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