What Kinds of Companies Work with Independent Contractors?

What companies work with independent contractors – and which companies would not exist if it weren’t for independent contractors?

Published on July 9, 2018

Companies that work with independent contractors

Companies of all sizes utilize the independent contractor workforce. This includes some of the largest companies that you can think of – behemoth companies like Apple and Google have a large workforce of independent contractors to carry out a variety of tasks and projects. Amazon has developed a way for independent contractors to deliver mail through Amazon Flex. Netflix has used independent contractors to select images for TV shows and movies on their platform.

 

Mid-sized businesses can outsource some of their work to independent contractors. This can be most easily seen with design and content creation. Videos, blogs, white papers, research, and design are often performed by independent contractors through freelance platforms like Upwork and Fiverr. Companies can also receive consultation from independent contractors in a variety of areas of their business.

 

Small businesses are also becoming more receptive to utilizing independent contractors. Many small business owners have seen the benefit of getting help on-demand and avoiding full-time employment when possible. Using independent contractors also provides the unique benefit of getting help only when needed. With the limited resources a small business owner has, spending the least amount of time and money is vital to the success of the business.

 

Companies that rely on independent contractors

Although businesses, both big and small, make use of independent contractors regularly, there are also companies that wouldn’t be able to survive without independent contractors. This generally happens when independent contractors provide the service offered by the company. For example, Uber, TaskRabbit, and Fiverr all operate as platforms for independent contractors. The business model in each of these companies relies on independent contractors to perform tasks. In these cases, the company simply connects people who need something to people that can fulfill that need.

 

There are some states where laws surrounding independent contractors have come into question, hence why Uber has seen legal trouble in recent years. This generally happens when the line between an employee and independent contractor becomes blurred. An independent contractor should prepare their own equipment, determine their own schedule, and work for a definite period of time. The definition of independent contractor is sometimes stretched to help companies like Uber survive.

 

Why do companies work with independent contractors?

Part of the reason companies work with independent contractors is that it is often more cost-effective than hiring employees. In fact, employers can save up to 30% when working with independent contractors rather than hiring employees. It’s possible to save a lot of money by working with independent contractors.

 

Independent contractors also provide a flexibility that isn’t possible with traditional employees. Independent contractors essentially perform their work then move on. If you don’t know how long you’ll need someone, working with an independent contractor is a good route to go. Similarly, if you have a specific project or task that needs to be done but think hiring someone full-time to complete it would be excessive, an independent contractor would be a good solution.

 

Saving money and becoming more flexible attracts any business. This is why you see companies of all sizes working with independent contractors.