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How Independent Contractors Fit into Your Contingent Labor Program

in Labor Quality

In the healthcare industry, contingent workers are essential for ensuring that your patients are getting the quality care they need. But because the definition of “contingent labor” is so broad, it’s hard to differentiate between temporary staff, independent contractors, part-time workers, and all of the other employees at your healthcare center. But each category of employee plays an important role in the day-to-day function of your business. Let’s look at how independent contractors fit into your contingent labor program.

What exactly is an independent contractor?

The Internal Revenue Service defines independent contractors as “People…who are in an independent trade, business, or profession in which they offer services to the general public.” In the healthcare industry, this could include doctors and dentists. However, professionals like dietitians, physical therapists, radiographers, or speech language pathologists would be considered allied health professionals.

It’s not always simple to know who is an independent contractor and who isn’t. According to the IRS, “the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” This is a very important distinction that HR professionals must make to ensure the employee is receiving the right tax benefits.

How does an independent contractor fit in with all other contingent workers?

The terms “independent contractor” and “contingent worker” seem almost interchangeable, and that can make it hard to tell the difference between the two. But there are some very important differences, which can determine how you manage their labor and training requirements.

In a nutshell, an independent contractor is a contingent worker in the idea that a contingent worker is someone who is not legally and professionally connected with your healthcare facility. But not all contingent workers are independent contractors. Contingent workers could include temporary workers from a staffing agency, nurses borrowed from a different facility, and yes, independent contractors.

How can you effectively manage all contingent workers?

As an executive of a healthcare facility, how can you manage all of these varied, individual contingent workers without becoming stressed out or overworked? Many hospitals and clinics know that contingent labor isn’t a passing fad, and that’s why they choose to invest in vendor management software, or VMS. A VMS can help HR professionals and hospital executives manage their contingent workers and staffing vendors effectively with just one system. A VMS can also provide hospitals with a steady, reliable stream of available talent, so that they know they’ll have staffing help whenever they need it.

ShiftWise provides vendor management solutions for all healthcare facilities, giving them the tools to maximize their potential, find valuable talent, and build trust with their community of patients.

ShiftWise’s comprehensive vendor management software ensures that the contingent workers you employ are up to your hiring standards, and keeps track of their information to help you make the right staffing decisions. ShiftWise’s reporting and analytics features allow you to meet your business’ contingent staffing needs, whether you need to hire temporary workers or independent contractors.

Sources:

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined

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