I’ve always been pretty open about the fact that I truly could not run my business without outsourcing in certain areas. It’s something I learned pretty quickly – if I wanted to save my sanity, I needed HELP!
As women, that can be hard to admit. But I’ve never been one to pretend to do it all, especially as a mom of 4. I share more about how I “balance” it all in this blog post.
But when it comes to business specifically, I’m a BIG fan of hiring independent contractors. Contractors are a great option when you’re not ready or willing to hire a full on employee, but still need some things taken off your plate.
Like all things in business, however, there’s a right and wrong way to work with independent contractors and if you’re not careful, you could find yourself in a bigger mess than you’re already in.
Take it from me – I’ve been on that side of things. And it was reallyyyyy not fun. But as the saying goes, you live and you learn right?!
That was definitely the case for me, and now I have a very specific set of red flags I look for before working with an independent contractor.
I suggest that YOU look for the same!
5 Red Flags To Look For Before Working With An Independent Contractor
1. Lack of a Clear Portfolio or Relevant Work Samples
Now, let me be clear – I know that everyone has to start somewhere and I’m not opposed to working with “newbies.”
However, I do still want to know that the person I’m hiring is skilled in the area and has some sort of experience so that I feel confident hiring them!
If the contractor you’re potentially looking to hire doesn’t have a portfolio or struggles to provide work samples, it could be a sign they lack the experience needed for your project and it could be a red flag that says it’s not worth it.
Depending on the project or task at hand, you may be willing to take the risk, but 9 times out of 10, if a portfolio that showcases relevant, high-quality work that helps demonstrate their skills and suitability isn’t available,e I’m probably going to search elsewhere.
2. Poor Communication or Slow Response Times
As a business owner, it’s often a little scary hiring other people to do certain aspects of your work for you, but one thing that can really help you overcome that fear is a huge trust factor with the person you’re hiring.
For me, one thing that builds trust quickly is effective communication and fast response times.
Do I expect someone to respond to my emails or Slack messages at all hours of the day and night and on weekends? Of course not! I totally understand having boundaries as a business owner and expect for independent contractors to enforce their own.
But if I feel like the communication is a little spotty from the get go, this is a red flag that I typically don’t ignore because it speaks volumes to how I’ll likely be treated once I become a client.
When hiring an independent contractor, you want to know that you can count on the person and not feel like you have to micromanage their every move and effective communication is lacking, it could cause lots of issues with your workflow and defeat the entire purpose of hiring them in the first place.
3. No Client References or Reviews
This goes hand in hand with having a portfolio to showcase their skills, but another thing I always like to look for are references, reviews, or testimonials.
Again, I know that everyone has to start somewhere, but if they can’t provide some sort of reference with people they’ve worked with in the past – even if it wasn’t necessarily for their contracting services – it could be a red flag that they’ve had challenges with past projects or client relationships.
This one isn’t always a deal breaker because I know it can take time to build your testimonial bank as a business owner, but it’s definitely something that I always like to look for and acknowledge and maybe ask questions about so that I get more insight on their reliability, work ethic, and past client satisfaction.
4. Refusal to Sign a Clear Agreement or Contract
Speaking of deal breakers, I’ve gotta say, THIS is one! Which should be no surprise coming from a girlie who literally creates and sells contracts for a living.
One thing about business is that you want to have everything in writing so that if any situation ever comes up where the “rules” are questioned, you have a playbook so to speak that tells you exactly how to navigate the situation.
A contract is essential for setting expectations on scope, payment terms, and deadlines, so reluctance to sign could be a sign of unreliability, which is not something I (or you!) want to mess with.
For a closer look at the 5 hardest working clauses in your independent contractor agreements, CLICK HERE!
5. Unrealistic Promises or Overly Low Pricing
And lastly, one of the biggest red flags that always catches my eye, are any promises or offers that feel a little sus.
If a contractor makes promises that sound too good to be true, such as exceptionally fast timelines or very low rates, that tells me they may not be realistic about the work required OR they’re trying to do anything they can to get the sale.
Unrealistic promises can lead to rushed or subpar work, missed deadlines, or unexpected extra costs, which are all things I really don’t have time to worry about – and I’m pretty sure you don’t either!
Your One Stop Shop For Legal Education and Support
Overall, hiring independent contractors for help in your business is a great way to take some tasks off your plate and grow your business in a way that feels good to you.
Since it can be such a tough thing to navigate as a business owner though, I’ve dedicated the November issue of The Legalzine to this very topic!
ICYMI, The Legalzine is a monthly digital magazine designed to make legal compliance accessible, actionable, and fun for online entrepreneurs, coaches, and creative business owners.
In the November issue, you’ll learn and receive:
- The top 5 legal mistakes businesses make when hiring independent contractors
- How to know if you’re ready to add to your team
- Expert tips from the HR playbook of Paradigm Consulting
- The ingredients (aka clauses) that make up a perfect contract recipe
- How to keep the lines between employee and contractor from getting blurred
- News and resources to stay on top of hiring legalities
Each month covers a different legal topic and helps you put what you learn into real action to ensure that your business is truly protected from top to bottom!
Your subscription options include:
- Monthly Subscription ($40/month)
- Quarterly Subscription ($96/quarter – that’s $32/month + 1 month free per year!)
- Yearly Subscription ($288/year – that’s $29/month + 2 months free per year!)
