How effective and engaging is your onboarding program for contingent workers?
Employee onboarding is the best opportunity to provide a solid foundation for developing new talent.
Delivering a successful onboarding experience to new employees, especially with contractors, ensures high retention, better employee engagement and stronger talent attraction.
Multiple workforce research confirmed that employees are more likely to stay in a company longer if they experience a good onboarding process. Moreover, standardising the onboarding program increases new hire productivity by 50%.
The process for contractor onboarding shouldn’t be too different from traditional employees. Part of onboarding is communicating the company brand, culture and business processes to new talent.
However, the onboarding program for external workers should have clear distinctions on the nature of their roles, compensations, schedules and other contractor-related responsibilities and agreements with employers.
Aside from having an effective and standardised onboarding process for contingent workers, how compliant is your program to mitigating risks, substantial costs and inefficiencies?
What are the existing compliance requirements for contractors?
There are factors that expose your business to risks when engaging with contractors. In the UK, worker misclassification is one of the noncompliance issues that employers and contractors must avoid.
1. Employment status
Persons in the UK who run their own businesses and are responsible for their own success or failure are classified as self-employed and contractors. Keep in mind that self-employed individuals are not entitled to a regular employee’s rights and responsibilities.
On the other hand, contractors can be self-employed and have an employment status of a worker at the same time. Failure to declare the correct worker status can result in significant penalties and fines for the business.
2. Employer-contractor relationship
The HMRC created the following criteria for employers and contractors to evaluate their contractual status and determine if they are following the correct worker status.
- Control – Does the business or employer have direct control or supervision of the contractor?
- Substitution – Can the contractor provide a substitute to complete the assignment if he or she is unavailable to work?
- Mutuality of Obligation – Is the employer expected to provide another contract in the future that the worker must accept if the present contract expires?
3. Data Privacy and Security Risk
Compliance with data privacy for both employers and contractors must be followed strictly. Contractors will have access to your company’s resources and sensitive data. Employers must also be responsible for securing their employee’s personal data.
In addition to these risks, here are common mistakes companies make when onboarding contractors:
- Failing to make contractors feel they’re welcome
- Failing to provide enough information to learn the company culture and branding
- Failing to provide dedicated support to familiarize the business’s way of working
- Treating contractors differently and as outsiders
- Setting unrealistic expectations on their deliverables
What CXC can do for your onboarding program
CXC has over 30 years of experience in workforce management. As a global HR outsourcing organisation, we have the technology and a dedicated team of experts in 65 countries across five continents to manage the needs of contingent workers.
- Our onboarding program for employees ensures familiarity with key aspects of the company’s operation and culture.
- Our contractor onboarding process is designed to mitigate risk and optimise productivity.
- Our robust proprietary technology systems ensure accuracy, security and compliance.
- We educate industry best practices to new hires to guide them in their professional journey.
- We support new worker productivity by delivering personalised communication over email and video aligned to your HR strategy.
Have a question or need help?
We’re happy to help!
Contact us today to learn more about our onboarding program for contingent workers.