Why Managing Contractors In-house is a Bad Idea
Contractors are a huge asset to an organisation. They enable us to meet the demands of varying workloads and recruit specialist skill sets to fulfil our projects. But, while they solve many problems, they can also create new ones. We have a responsibility to keep our workers and our contractors safe while ensuring they are insured, qualified and competent. On the surface, it may seem manageable, surely it's just a case of collecting the right documentation and signing all the paperwork? Unfortunately, however, that’s not the case. We need to have full oversight of our contingent workforces, ensuring there are no gaps in their compliance. The truth is that it can be hugely time-consuming to get right. And, the bigger picture is if we don’t get it right, we put both workers and the organisation at risk.
The Complicated Task of Contractor Management
Compliance is not a simple one-off task; it is something that needs to be addressed constantly and managed continually. To ensure workplace compliance, you need to communicate effectively and verify registrations, certifications, and licences are current and up to date. There are legislative requirements, insurance policy nuances, eligibility checks and many other technicalities to master. Now, you may be able to get all of that under your belt in-house, when working with a small number of contractors, however, it can very quickly become unmanageable as contractor numbers increase. When considering contractor management, you’ll need to take into account how your work environment might change in terms of:
Regulations - industry-specific regulations and legislation can change rapidly due to technology and evolving business practices. If you’re not on top of changes, you may become unknowingly non-compliant.
Growth - if your company grows and the volume of contractors you are working with expands, a small in-house system might not easily scale.
Communication - no doubt many of your employees work with contractors, from risk managers to finance and legal teams, however, if your information and documentation aren’t centralised and easily accessed, it can be impossible to effectively share knowledge.
Employee turnover - while you may have employees that are all over your in-house system if they leave, it can become disconnected and disorganised.
The chances are with an in-house system that, contractor management will become too time-consuming, too resource-intensive and too costly to maintain. And, when problems arise with contractor compliance, it can lead to safety risks, project delays, mounting costs and hefty fines.
The Benefits of Outsourcing Contractor Compliance
Outsourcing contractor management is an obvious solution, whatever the size of your business, it helps you to save time and money and takes away the stress of understanding and managing regulatory compliance. Specialist contractor management companies do all the legwork for you, help you find the best contractors and streamline the process of managing them. By outsourcing contractor compliance, your company can benefit from better:
Automation - instead of having to remember when documentation is due for renewal, you and your contractors will receive automatic notifications.
Oversight - instead of having to review multiple folders and files, all contractor data is in one place, giving you a quick overview of your compliance status.
Confidence - instead of hoping you’ve got it right, you have confidence that your data is accurate and can proactively manage business risk.
Communication - instead of disjointed communications from multiple departments, you can use online inductions and email alerts to streamline and standardise communication.
Talent - instead of spending time searching for contractors on a case-by-case basis, you can have a pool of pre-qualified contractors ready for selection.
Storage - instead of documents stored in multiple places, you can have a central repository for all contractor data.
Support - You can rely on specialist advice to keep you on track, but most importantly, you can depend on first-line support delivered directly to your contractors.
As business leaders, we are always searching for ways to save resources and reduce risk. By outsourcing contractor compliance, you are able to do just that. What that means is that you can improve efficiencies while reducing liabilities, giving you peace of mind that your contractors are working efficiently, safely and most importantly ‘compliantly’.
Simplifying Contractor Compliance
There is no point in making growing your business more complicated than it needs to be. Contractor management companies can give you the expertise you need to remain compliant while providing the systems you need to become more efficient. The result is a streamlined contractor management process with automation, verification and consistency at its core. With so much to gain from outsourcing, managing contractor compliance in-house just doesn’t make business sense.
For over a decade, Conserve has helped organisations overcome contractor management challenges. We can help you develop a contractor management service that will be not only effective but will make your organisation safer, while minimising your overall risk. Request a demo now or visit the Conserve page for more great content.
For more information, call +61 2 8883 1501, visit www.conserve.com.au or email enquiries@conserve.com.au