The workforce is evolving. More and more companies are counting on contractors, freelancers, temps, and vendors to deliver results. Whether it’s through project-specific work, specialized knowledge, or seasonal help, non-employees are assuming vital roles across industries.
This evolution is not limited to technology or creative services. Healthcare facilities rely onwhich travel nurses and visiting technicians. Colleges employ adjunct instructors. Banks hire consultants to manage audits or implement new software. These staff members provide flexibility, but they also introduce complexity.
Non-employee management comes with a different set of requirements. Unlike full-time employees, they typically operate under segmented systems, agreements, and access models. If the proper measures aren’t established, compliance gaps, communication failures, or even security breaches can occur.
One of the most fundamental jobs in working with a non-employee workforce is to get classification right. Whether an individual is an employee or an independent contractor makes a big difference—on tax obligations, legal liability, and nearly everything else.
Misclassification can result in fines, lawsuits, and reputational damage. In 2025, the U.S. Department of Labor put the brakes on stricter rules, reverting to the more lenient "economic reality" tests. However, states like New Jersey are producing stricter rules, and in some sectors, like construction, upstream companies can already be held responsible for their subcontractor's misbehavior.
There is no one-size-fits-all model. Federal, state, and even local laws differ. A compliant contractor in one state can be misclassified in another.
Companies should conduct regular contingent labor audits. Some good places to begin include reviewing:
• If the employee controls their own schedule
• If they bring their own equipment or tools to work
• If the relationship is project-based versus permanent
For added security, many firms use Employer of Record (EOR) vendors or attorneys to handle complex labor laws.
You should have a written agreement with every contractor, freelancer, or supplier. It can't be a lengthy one, but it has to have the basics: scope of work, deliverables, payment terms, deadlines, and roles.
In 2025, the California Freelance Worker Protection Act mandated written contracts for freelance work of $250 or more. Companies that don't comply face penalties or payment disputes. The practice is expanding to other states.
Beyond defining what work to perform, contracts need to define:
• When and how work will be examined.
• The main point of contact.
• Confidentiality or intellectual property clauses.
For vendor relationships, add service-level agreements (SLAs) to set performance targets. These may be as straightforward as turnaround time goals or availability expectations.
Even for a brief engagement, clear contracts minimize confusion. They ensure contractors know what's required and safeguard your organization in the event of a dispute.
When considering how to manage contractors in volume, standardized templates and contract processes become integral to successful vendor management best practices.
All non-employees, whether it be freelance designers or contracted nurses, need a good foundation. A good onboarding process prepares them to understand how your organization works, what equipment they'll use, and who to contact for help.
A simple freelancer onboarding checklist would ensure that the following is covered:
• Company overview and team introductions.
• System logins and access setup.
• Compliance training (security, privacy, or job-specific procedures).
• Communication expectations (who to notify, how frequently).
• Where to access documents, tools, and support.
When onboarding is automated, the non-employee workforce comes on board faster. It also reduces risk by ensuring that contractors work with the same clarity as your internal workforce.
Automated onboarding is a foundational part of third-party workforce management, especially in regulated or fast-evolving industries.
Every non-employee should know who they report to. Having one point of contact reduces confusion and enhances communication. Contractors get conflicting instructions—or no instructions at all—without it.
Regular syncs ensure staying on track. A weekly 15-minute sync will detect blockers, align on priorities, and avoid rework.
About 60% of American freelancers worked remotely. That's nearly twice the percentage of remote for regular employees. With no one in the same room, communication has to be intentional.
Make use of shared tools like Slack, Teams, or email threads to keep everybody in the know. For multi-day projects, make non-employees guests on project boards (such as Trello or Asana) so they stay in sync without continual follow-up.
Notify contractors when to call in, how to notify changes, and how success is defined. For independent contributors and gig workers, clear expectations for communications prevent delay and missed goals.
Good communication habits are the foundation of third-party workforce management—whether the worker is working on-site or off-site.
Non-employees may not be on your payroll, but they often work with full-time employees. When they are excluded, it can negatively affect the quality and consistency of their input. Small gestures such as extending team meeting invitations or project channels can make a big difference.
Although contractors may be on site only a few weeks, it is the little things that go a long way toward making them feel part of the team. Acknowledge their good work publicly. Celebrate successes with them.
Including is not the same as removing the boundary between contractor and employee. It is creating a working environment that is professional, respectful, and that facilitates the work.
Done properly, inclusion becomes a value-add in your workforce strategy that drives more productive, more engaged partnerships.
Maintain the same standard of quality as permanent employees. Clear expectations of timelines, deliverables, and output are only the beginning. Once the work has started, check in regularly to measure whether those standards are being maintained.
One handover is not sufficient. Especially for long-term or project positions, monitoring can spot issues in the early stages or confirm what is working.
Contractor performance management doesn’t need to be complex, but it should include:
• Regular checks on progress.
• Pre-agreed quality check measurements.
• Customer or team feedback for externally facing roles.
• End-of-project debriefing and comment.
In 2025, Verizon discovered that 30% of data breaches involved third-party partners—double the percentage in the previous year. Vendors, contractors, and freelancers tend to receive system access but aren't necessarily subject to the same level of control as employees.
Beyond NDAs and confidentiality clauses, the following should be done to ensure all identities are secured:
• Grant minimum-privilege access only.
• Employ unique credentials with an expiration policy.
• Employ MFA on all accounts.
• Provide basic security training for contractors who are long-term or have high levels of access.
• Logging and monitoring sensitive system access.
Most importantly, shut down access at the end of the engagement. Inactive accounts are a common target for breaches.
A modern VMS will allow you to monitor engagement, streamline onboarding procedures, retain contracts, and track compliance. For gig and freelance roles, freelance management systems (FMS) offer supplementary features particular to short-term projects.
Third-party workforce management is more efficient when everyone shares the same tools. Integrate:
• Project management software (Trello, Asana, Jira).
• Communication software (Slack, Teams).
• Secure file-sharing software.
• Time tracking and invoicing tools.
These systems are reducing confusion and simplifying collaboration—especially when contractors are geographically remote or work asynchronously.
Scaling is one of the most significant benefits of using contractors, vendors, and freelancers. Whether it's a cyclical peak in sales, a new project launch, or a surprise staffing shortfall, a flexible non-employee workforce allows companies to respond without having to incur long-term headcount obligations.
Treat your non-employee workforce plan the same way you would any other resource plan. That means:
• Planning contractor needs around known events.
• Having a talent pool of pre-screened talent to quickly onboard.
• Including temp labor in regular planning budgeting.
• Establishing lead times for vendor sourcing.
Planning ahead reduces desperate scrambles at the last moment and improves the quality of outcomes.
Organizations that view their external partners as strategic players are more likely to receive better work and faster results, and the best way is to use direct performance feedback to identify the best vendors and freelancers. Track:
• Quality of response and communication.
• Budget adherence.
• Team feedback.
Top performers can be asked to come back or put on a list of preferred partners. Such talent memory increases efficiency for subsequent projects.
Want to have great freelancers and vendors keep working for you? Pay them on time. Most freelancers these days like clients who pay just rates, in a timely manner, and set clear expectations.
Managing a non-employee workforce requires more than policies and good intentions. It takes consistent processes, centralized systems, and tools built for the task.
That’s where idGenius comes in.
idGenius is a purpose-built platform for managing contractors, vendors, freelancers, and other third-party identities. From onboarding and access provisioning to lifecycle tracking and offboarding, idGenius helps organizations reduce manual work, close compliance gaps, and maintain visibility across every external relationship.
If you're looking to bring structure to your third-party workforce management—without creating more work for your team—idGenius can help.
Explore idGenius today and see how it supports secure vendor management at scale. Contact info@anomalix.com to learn more.
