Remote Work
January 4, 2021

Dhruvi J.

Hiring Independent Contractors in 2021

Even before the pandemic, the workplace was changing. 

However, in recent months, we've seen companies adapting to different methods of work, including hiring independent contractors. This has provided companies with a wider choice of accessing specialized talent and a means to engage independent professionals safely and easily. 

As of 2020, independent contractors made up 41 million in the US representing a third of their workforce. This number is expected to grow as we move into the future. 

We’ve compiled a list of compelling reasons why hiring independent contractors is important for your organization in 2021. 

1. Save money working with independent contractors

One of the many reasons companies choose to hire independent contractors over employees is the cost that is saved based on the working relationship. Employers can avoid providing traditional benefits, for example, health insurance, unemployment insurance, or even payroll taxes. 

Besides, working off-site would reduce the need for office space and supplies. Cutting down on these costs would leave your company with additional financial resources that can be used elsewhere. 

2. Find the right talent when you need it

With independent contractors working remotely, it is possible to source talent from the global talent pool. This allows you to choose contractors based on their skill level as opposed to settling for contractors only available locally. 

It is also much easier to end a working relationship when you realize the contractor isn't meeting your organization's needs. In some countries, like France, firing an employee is a difficult process and may force companies to hold on to low-performing employees as they work through the training and legal processes of termination. 

3. Flexibility and readiness to meet your organization's needs

With the flexibility of working with an independent contractor, you can choose to hire for a specific project for a short period. The client and contractor then both have the flexibility to continue or end a working relationship. Clients can choose to simply not renew the agreement for the next project depending on if the contractor is a good fit or not.

This flexibility is also beneficial in organizations that have a fluctuating workload. A contractor can be brought onboard as and when needed, increasing efficiency.

4. Reduced training costs

The benefit of working with independent contractors is that you always have access to the person with the right skill-set for a specific type of work. As contractors tend to hold a specific type of knowledge, they do not usually require any training to fulfill their tasks. 

This often translates to a higher level of efficiency. Contractors not only save you money but, also time, by skipping the training and onboarding processes you have when hiring a full-time employee. 

5. Reduced liability 

Working with independent contractors reduces your company's exposure to liabilities that come with hiring employees. 

Most of the protections in place for employees from health insurance, minimum wage, employment taxes, or paid time off do not apply to independent contractors. This makes your company less susceptible to lawsuits as well as other legal considerations. 

Ready to get started?

Sign up for your free demo today!

More from RemotePass

People are talking

Hear what teams love about using RemotePass.

RemotePass has been so efficient for us as we have at least 60% of our team being remote. Especially for tracking if everyone has been paid out or if they have reimbursements, we don't have to manually do it one by one anymore. It's also really good since we are in compliance with each and every single one of our remote teams' place of residence.

Lorena A, HR

RemotePass has enabled Swvl to be more flexible, allowing us to hire the best talent in Remote locations. RemotePass has been a great partner and fast tracking Swvl's growth plans in multiple countries. Special shout out to the support team for the exemplary service.

Faizan M, Global HR

Brilliant service. We love and we'd be using it for the years to come. Also great customer success management as well!

Badr A.  CEO

We love the entire system you guys have built, it's user-friendly and in particular we love the automated notifications part. Employees are automatically informed about the payment status and they receive the payment in a couple of hours after they get notified vs. manually asking us. Thanks for your ongoing support

Muhammed, CFO

The experience with Remote pass and the assistance you have provided with my recent transaction is amazing. I really liked the follow-up nudge and provide me details is super cool. Thanks for your help

Tarun V.

Using RemotePass has been an absolute game-changer for our operations - knowing that we have a reliable partner on our side even in complex regions efficiently (this has previously been a big headache for us), allows our teams to focus exclusively on client service and product delivery

Nina, Associate VP

We were looking for a simple and affordable product and RemotePass more than delivered. RemotePass helped us streamline and manage our remote teams. RemotePass understood us as a company and provided us the support and confidence that we are compliant with regulations, our remote teams have excellent support, and that we made the right choice

Preeta, HR Business Partner

Love it! It has been an essential tool for us, the perks of having everything at the point of my fingers.Using RemotePass has been super efficient. The platform is user-friendly and fast, and communication with customer service is truly a "gold standard".

Iyad A, Head of People

RemotePass has been very helpful as it streamlines the payment process to our consultants, with a simple 2 to 3 clicks the job is done. It is effortless and straightforward to use. The most important thing is that It eliminates any compliance risks we might face, and the lengthy verification process. Overall the system is excellent, and I would recommend it to other organizations.

Rafik, Head of HR

The product has been incredibly a game-changer for us as we scaled our team globally. Creating a great first impression when onboarding remote teams . Everything centralized in one place. Love it!

Roxana L, Chief People Officer

Our work with RemotePass is a partnership based on trust and credibility we are proud to have. With RemotePass services, onboarding and payroll for our global team is well managed and our employees feel safe and cared for.

Fahad A, HR
@Soum KSA

I was instantly impressed with the UI/UX of the RemotePass platform, it is incredibly user-friendly and the feedback I have received from the remote workers has been excellent. Having supplied contract and remote staff to clients in the Middle East for several years, I have been used to a very manual and labor-heavy process when it comes to payroll and compliance. After one demonstration from the team at RemotePass I switched from using an existing supplier, as I get better value and service using this platform.

David S, Practice Lead

Try RemotePass Today!

Join leaders who depend on RemotePass every day to be ahead of the curve.