10 things to look for in a contractor management system
Also known as a Freelancer Management System (FMS), a contractor management system streamlines the entire process of hiring, onboarding, and managing contractors globally. It helps businesses automate administrative tasks to efficiently handle contracts, payments, and project collaboration for a seamless experience between businesses and contractors.
Managing freelancers and contractors can sometimes feel like navigating a complex maze. From sourcing and onboarding the right talent, to global compliance and payments, there are so many decisions to get right. If you’re struggling to manage your external workforce, you’ll find that a reliable contractor management system can be just the thing you need.
Choosing the right contractor management system for your business will save time, ease the burden of admin and make your relationship with contractors a lot more straightforward. Here’s a list of ten key features to look out for when picking the perfect contractor management system for your business.
What does a contractor management system do?
A contractor management system is a specialised tool that helps businesses efficiently handle their interactions with freelancers and contractors. It serves as a centralised system to manage the entire contractor lifecycle, covering tasks like sourcing, onboarding, compliance, verification, project assignment, time monitoring, and payment procedures.
These platforms are a digital hub for communication and document management, simplifying the administrative complexities associated with external workforce management. A contractor management system is a practical solution that enhances operational efficiency and collaboration, ensuring a smooth and effective engagement process with contractors and freelancers.
How do you choose the right Contractor Management System?
If you’re in the market for a new contractor management system, or you’re looking to upgrade your existing system, this ten-point checklist will help you to find the platform that’s right for you.
1. Compatibility with your business
No two businesses are the same and ensuring that the contractor management system you use aligns with the unique needs of your business is crucial. Begin by conducting a thorough assessment of your organisation's specific requirements, considering factors such as the scale of contractor engagement, the nature of projects, and any industry-specific compliance standards. A versatile contractor management system should seamlessly integrate with your existing workflows, accommodating the intricacies of your business operations.
By prioritising compatibility, you lay the foundation for a contractor management system that not only meets but anticipates and adapts to the needs of your business.
2. Scalability and flexibility
As your business grows and evolves, the contractor management system should effortlessly scale alongside, accommodating an expanding roster of contractors and the increasing complexity of projects. Look for a system that allows seamless integration with the tools and technologies you use.
If there's a chance your talent pool might extend beyond local borders, it's a good idea to ensure that the contractor management system possesses the capability to handle global contractors. A truly scalable and flexible contractor management system empowers your organisation to navigate growth with ease, providing the agility needed to thrive in an ever-changing workforce landscape.
3. Access to the best talent on the market
A fantastic feature of the best contractor management systems is the ability to connect your business with the best freelancers and contractors in the market. Look for a contractor management system that goes beyond basic functionalities and offers access to an exclusive marketplace of verified freelancers.
These marketplaces are curated pools of talent, pre-screened for expertise, reliability, and performance. For example, YunoJuno vets each freelancer on our marketplace to ensure we only provide our customers with top-tier-talent in a variety of disciplines.
4. Compliance and risk management
When it comes to contractor management, compliance and risk management are non-negotiables. Your contractor management system should be equipped with robust features ensuring adherence to local and global regulations. Look for a system that automates compliance checks, ensuring that your contractors meet all necessary legal and industry-specific requirements.
A comprehensive contractor management system also includes risk management tools, providing real-time insights into potential pitfalls and enabling proactive mitigation strategies. For example, YunoJuno safeguards against contractor misclassification with integrated tools and automation, saving you time while giving you peace of mind.
By prioritising compliance and risk management in your contractor management system selection, you not only protect your business from legal complications (including avoiding the risk of severe penalties and fines) but also instil a sense of confidence in your stakeholders, demonstrating a commitment to responsible and secure contractor engagements.
Check out our contractor compliance checklist to see all the factors you should take into considerations for your global contractor workforce.
5. Data collection
The perfect contractor management system will provide you with all the data you need to monitor, audit and report on your contractor workforce. This data should be presented in a simple, accessible way, enabling you to pull reports with ease and get an at-a-glance view of key data and insights.
Consider all the data you need on contractor engagements and ensure the platform you choose provides this data all in one place, saving you time and effort in having to pull individual reports.
| Aspect | Employee | Independent Contractor |
|---|---|---|
| Control and supervision | Direct control over how, when, and where to work | Freedom to set their own schedules and methods |
| Payment | Regular wages; taxes withheld by employer | Paid per project; responsible for their own taxes |
| Benefits | Health insurance, retirment plans, paid leave | Must arrange their own benefits |
| Termination | Often requires notice and may include severance | Can usually be terminated at any time without benefits |
| Tools and equipment | Provided by the employer | Typically use their own tools |
6. Time tracking and invoicing
Efficiently managing contractor engagements extends beyond project coordination, and a comprehensive contractor management system recognises the importance of time tracking and invoicing. Seek a contractor management system that seamlessly integrates time tracking features, allowing both you and your contractors to monitor work hours accurately.
Robust invoicing capabilities within the system ensure smooth and timely payments, reducing administrative overhead and enabling your contractors to work with their accountants.
The ability to generate and track invoices directly from the contractor management system not only enhances financial transparency but also streamlines the entire billing process. Prioritise a CMS that understands the financial nuances of contractor management, contributing to a hassle-free and transparent invoicing process.
7. Payment capabilities
An effective contractor management system should also enable you to make payments. Look for a system that offers a secure and straightforward payment processing feature, enabling you to foster a positive relationship with your contractors by providing timely and accurate payments.
Whether it's integrating with your existing financial systems or providing built-in payment functionalities, the contractor management system should eliminate the complexities associated with contractor payments.
8. Integrations
A top-tier contractor management system will seamlessly integrate with your existing tech stack. Look for a contractor management system that plays well with your project management tools, communication platforms, and other essential software applications.
Integration capabilities automate and streamline workflows, minimise data silos, and enhance overall efficiency. Whether it's compatibility with CRM systems, communication tools, or accounting software, a contractor management system that effortlessly fits into your tech landscape ensures a smooth and interconnected operation.
9. User-friendly interface
Usability is key. Opt for a system with a user-friendly interface and an intuitive design, ensuring that both your internal team and your contractors can navigate the platform effortlessly. A straightforward contractor management system minimises the learning curve, fostering quick adoption and speeding up onboarding.
Look for features such as easily accessible dashboards, clear navigation menus, and a simple onboarding process. Choose a system that prioritises simplicity without compromising on functionality, creating an environment where efficiency and ease of use go hand in hand.
10. Excellent human support
Look for a platform that offers various support channels such as live chat, email and comprehensive help documentation. Timely and knowledgeable support ensures that any issues or queries are addressed promptly, minimising downtime and potential disruptions to your contractor management processes.
A contractor management system provider with a commitment to excellent customer support becomes a trusted partner, providing reassurance and assistance whenever needed, and ultimately contributing to the smooth functioning of your contractor management operations.
YunoJuno: Your all-in-one platform for managing contractors globally
YunoJuno is an all-in-one contractor management system that enables you to source, onboard, manage and pay contractors globally. Our marketplace provides you with a vetted list of talent from a variety of disciplines and our easy-to-use platform enables you to track, manage and pay contractors in over 150 countries. With built-in global compliance and an intuitive dashboard to track data on your contingent workforce it’s the only platform you need for contractor management.
Find out more about YunoJuno and speak with an expert today!
