Key Considerations For Managing Your Contracted Workforce

The gig economy continues to be on the rise, with online gig work now accounting for up to 12% of the global labor force and serving as a growing source of income for millions. As more organizations turn to contracted and freelance workers to meet their needs, they gain flexibility and access to a diverse talent pool. However, this shift also brings unique challenges that HR professionals must navigate. As you explore ways to support your contracted workforce, consider the essential factors that can drive engagement, productivity, and loyalty—ultimately contributing to your organization’s success.

1. Integrating Contracted Workers Into Your Culture

A thriving organizational culture is crucial for attracting and retaining top talent. While contracted workers may not be permanent employees, integrating them into your company culture can significantly enhance their experience and performance. Harvard Business Review linked high belonging to a 56% increase in job performance and a 50% reduction in turnover risk. Here are some ways to foster this sense of belonging for contracted workers:

Onboarding Process: Create an onboarding process specifically for contractors that provides them with a clear understanding of your company’s values, goals, and expectations. This includes introducing them to key team members and setting up initial check-ins.

Inclusive Culture: Foster an inclusive environment where contractors feel valued and part of the team. This can be achieved through team-building activities, open communication, and regular updates about company initiatives.

Curated Support Programs: Cater to key areas of support for contractors by developing targeted programs. Whether it’s mental health and well-being resources or soft skill development, offering curated experiences shows your commitment to their growth and success.

2. Offering Support And Resources

Contracted workers often face unique challenges, such as isolation and lack of access to company resources. Providing support can help bridge these gaps and boost engagement. Here are some ways to offer valuable support:

Access to Benefits: While traditional employee benefits may not extend to contractors, providing access to resources like TaskHuman can significantly enhance their well-being and productivity. In fact, 78% of users report that TaskHuman has positively influenced their work engagement. With on-demand coaching and well-being resources, TaskHuman empowers contractors to take charge of their professional and personal growth, helping them stay engaged and perform at their best.

Skill Development: Encourage contractors to participate in learning and development opportunities. Access to training and coaching can enhance their skills and foster a sense of loyalty to your organization. 

3. Establishing Clear Communication Channels

Effective communication is vital for managing a contracted workforce. Here’s how to ensure everyone is on the same page:

Regular Check-Ins: Schedule consistent check-ins with contracted workers to discuss progress, address concerns, and provide feedback. This not only helps to build relationships but also ensures that contractors feel connected to their teams.

Feedback Mechanisms: Implement feedback mechanisms that allow contractors to share their experiences and suggest improvements. This shows that you value their input and are committed to creating a better work environment.

More on feedback in the workplace: ON-DEMAND: Fostering Continuous Feedback & Development →

4. Navigating Compliance And Legal Considerations

Contracted workers operate under different legal frameworks than traditional employees. Ensure your HR practices comply with labor laws and regulations:

Contracts and Agreements: Have clear contracts in place that outline expectations, deliverables, and payment terms. This helps to minimize misunderstandings and protects both parties.

Tax and Benefits Compliance: Understand the tax implications and benefits obligations associated with contracted workers. This will help you avoid potential legal issues and ensure compliance with local regulations.

5. Emphasizing Mental Well-Being

The well-being of your contracted workforce is crucial, especially as they may not have access to the same support systems as full-time employees. Well-being and productivity are closely linked; when employees are drained, they tend to struggle with productivity. Supporting their mental well-being helps avoid any pitfalls and drives overall performance:

Mental Health Resources: Providing contractors with access to mental health resources is essential for supporting their overall well-being. The TaskHuman Platform offers valuable tools to help them navigate challenges, manage stress, and maintain a healthy work-life balance. 42% of TaskHuman users report that the platform has helped them effectively balance their work and personal lives, making it a crucial resource for fostering well-being and productivity.

Fostering Connections: Create opportunities for contractors to connect and feel part of the team. Involve them in team channels, volunteer opportunities, and/or company events to build community and alleviate isolation. Additionally, encourage them to join Employee Resource Groups (ERGs) to foster inclusion and belonging.

Explore Real-World Impact: TaskHuman x HopSkipDrive

TaskHuman partnered with HopSkipDrive to enhance the skills of their CareDrivers through personalized coaching. This initiative was designed to improve service quality while boosting driver retention. Want to see how it worked? Learn more about this impactful partnership →

Conclusion

As the workforce landscape continues to evolve, organizations must adapt their strategies to effectively manage and support their contracted workforce. By focusing on integration, support, communication, compliance, and well-being, HR professionals can create a positive experience for both contracted workers and the organization as a whole.

Ready to explore how TaskHuman can elevate your contracted workforce experience? Schedule a demo with our team today and discover the benefits of providing comprehensive support to all members of your organization.