If you’re thinking of hiring independent contractors, you’re not alone. In recent years, remote work has drastically changed how businesses manage their workforce. The demand for skilled freelancers has skyrocketed due to the flexibility, specialized skills, and cost savings they offer businesses. In the U.S. alone, 35% of the workforce are gig workers, with this number expected to increase in the coming years.
At the same time, businesses are increasingly hiring across borders, making good contractor management software essential for managing international payments, compliance, and contracts of global contractors.
There are many platforms for contractor management on the market, each with its own business model, set of features and pricing. To remain compliant and efficient as a business, making the right choice from the get-go matters. That’s why it’s so important to carefully weigh up your choices.
Below, we’ll dive into the details of our shortlist of the best contractor management software on the market. Here’s a summary of their main stand-out feature, as well as pricing.
Overview of the Best Contractor Management Software
What Is Contractor Management Software?
Contractor management software is a digital solution that helps businesses manage the entire lifecycle of hiring, managing, and paying contractors. Some typical features of contractor management systems include automated manual processes such as setting up contractor agreements, making payments and conducting compliance checks.
What Are the Benefits of Contractor Management Software?
It’s tempting to manage contractors yourself to save costs as a business. However, going the manual route can quickly get time-consuming, and it’s especially risky if you’re hiring contractors in multiple countries. Contractor management software can offer the following benefits over managing everything yourself:
- Guaranteed Compliance: Ensures all contractors comply with local tax and labor laws, reducing compliance risks and potential fines or penalties.
- Simplified Payment: Automates payment workflows, ensuring timely payments – most software also offers the ability to pay in multiple currencies.
- Streamlined Management: Easily oversee work orders, agreements, and performance from one platform.
- Performance Monitoring: Track contractor performance, ensuring you have visibility into work progress.
- Time and Cost Efficiency: Reduces administrative time and costs by automating manual processes and minimizing human error. This can be especially useful if multiple people in your organization interact with contractors, by offering one standardized platform to manage everything.
How We Picked the Best Contractor Management Services
Selecting the top contractor management services required a comprehensive evaluation of various platforms and rating them on critical factors that ensure effective contractor management. Our selection process emphasized:
- Industry-Specific Functionality: We prioritized software solutions tailored to the unique needs of contractor management across various industries. This involved assessing features that address specific operational requirements. This ensures that the software aligns with industry practices and standards.
- User-Friendly Interface: Ease of use is critical for successful software adoption. We evaluated platforms based on their intuitive design, ensuring that both administrative staff and contractors can navigate the system efficiently. The result is a faster learning and adoption process which invariably leads to increased productivity.
- Compliance and Risk Management: Effective contractor management should adhere to legal and regulatory standards. We examined each platform's ability to manage compliance documentation, track certifications, and enforce safety protocols, mitigating potential risks associated with contractor operations.
- Integration Capabilities: The ability of the software to seamlessly integrate with existing systems, such as HR platforms, payroll, and project management tools, was a significant consideration. This facilitates the creation of a cohesive operational ecosystem and streamlined workflows.
- Scalability and Customization: We assessed whether the software could adapt to the evolving needs of a growing business. This includes evaluating customization options to fit specific organizational processes and the capacity to scale in response to an expanding contractor workforce.
- Support and Training: An on-demand support team and training resources are essential for effective implementation and ongoing use. We considered the availability of customer support, training programs, and resources that facilitate user proficiency and address potential issues quickly.
- Pricing Transparency: Understanding the cost structure is vital for budgeting and assessing return on investment. We analyzed pricing models for competitiveness, ensuring that the services offer value without hidden fees, and align with the financial constraints of various types of organizations.
9 Best Contractor Management Software & Solutions
1. Playroll
We admit our bias, but have a proven track record of success behind our name as a standout global employment solution to compliantly hire workers across the globe – which includes our all-in-one platform for contractor management.
With Playroll’s contractor management system, you can hire and pay international contractors in 180+ countries. Managing and paying your team is made easy with automated contract creation, global payments in 50+ currencies, and an intuitive platform to manage work for all your contractors in one place.
When setting up your contractor agreements, Playroll does the heavy lifting to ensure compliance with local labor laws. Each client gets their own dedicated Customer Success Manager, at no extra cost, for ongoing support.
Playroll also offers Employer Of Record (EOR) services to hire full-time employees, making it easier to scale your workforce for any type of employment need.
Pricing: $35 p/contractor. Flat fee per month.
2. Fiverr
Fiverr offers a large marketplace that allows businesses to connect with freelancers worldwide. It’s easy to navigate with advanced filtering options, making it a popular choice for companies that want quick access to talent and browse freelancers by category.
However, managing larger teams of contractors through Fiverr may require additional tools for tracking and contractor management. They also do not offer comprehensive compliance support when hiring international contractors.
Pricing: Base service fees of 5.5% per purchase amount. For purchases under $100, an additional $3.00 is added per purchase.
3. Upwork
Upwork provides project management tools and time tracking to help businesses manage contractors. With access to a large talent pool, it’s a great platform for finding specialized skills or purchasing ready-made projects.
On the downside, managing payments across international borders may require third-party tools. They don’t offer compliance support for hiring international contractors. Upwork also charges high fees for its premium features, including dedicated support and customized reporting.
Pricing: Between 5-10% service fees, some plans include contract initiation fees per contract. Custom fees for enterprise customers.
4. Deel
Deel is a well-known platform designed for managing international contractors and employees. It automates multi-currency payments, has comprehensive compliance support, and offers an intuitive dashboard for tracking contractor performance and agreements in one place.
On the downside, they charge high fees for contractor management, starting from $49 per contractor/month, as opposed to the flat fees other providers offer. They’ve also received reviews of high exchange fees and unexpected fees. This can make it hard to properly budget for their services.
Pricing: Starts from $49 per contractor/month.
5. Rippling
Rippling is a workforce management system that also offers services to hire, pay and manage international contractors. It offers advanced capabilities to automate payment processing and compliance checks. They offer a wide range of products, including IT and finance management, that can make them a good fit for businesses looking for one platform to handle multiple aspects of their workforce.
On the other hand, Rippling has received public reviews on the steep learning curve of its products, with many products that are difficult to navigate. They do not publicly disclose their pricing, making it hard to make a straightforward assessment of whether their services fit into your budget.
Pricing: Not publicly disclosed.
6. ClickUp
ClickUp is a versatile project management platform designed to boost team collaboration and productivity. For managing contractors, ClickUp offers specialized features that streamline the entire process. The platform provides customizable templates, such as the Contract Management Template, that help users efficiently track contract statuses, set deadlines, and organize stakeholder information. The platform's flexibility allows teams to tailor it to various project needs.
However, some users find the interface complex, leading to a lengthy adoption process, especially for those new to project management software. Additionally, while time tracking is available, it may not be as intuitive as other time-tracking tools.
Pricing:
- Free Forever: $0 per month
- Unlimited: $7 per user per month
- Business: $12 per user per month
- Enterprise: Contact for pricing
7. Worksuite
Worksuite is a freelancer and contractor management platform designed to help organizations manage their external workforce efficiently. Users enjoy its ability to centralize contractor data, automate onboarding processes, and facilitate seamless payment workflows. The platform's customizable nature allows businesses to adapt it to their specific needs.
On the other hand, some users have noted that certain features, such as reporting and project tracking, could be more flexible and intuitive. Additionally, the user interface may feel dated to some, potentially negatively impacting user experience.
Pricing: Starting at $500 per user per month for the Core Plan
8. Remofirst
Remofirst is a global EOR platform that also offers contractor management services, enabling businesses to onboard, manage, and pay international contractors. Remofirst's user-friendly platform is a strong point, simplifying the onboarding process and daily management tasks. Remofirst received praise for their automated invoicing and payment tracking features that improve operational efficiency.
However, there's a lack of integration capabilities with other software tools. While the contractor platform offers a robust set of features, users report the need for more advanced customization options tailored to specific organizational needs.
Pricing: $25 per contractor p/month
9. Remote
Remote is a platform designed to help businesses manage global payroll, taxes, benefits, and compliance for both employees and contractors. Users value its ability to handle multi-currency payments and automated compliance checks, which simplify the complexities of international contractor management. The platform's wide country coverage makes it suitable for businesses with a global presence.
While Remote offers offers a 24/7 help centre, the company uses a chat bot and a ticketing system which means you won’t necessarily receive personalized or immediate assistance. Companies like Playroll provide comprehensive support for both employees and employers with our customer support managers. Additionally, Remote charges a premium for offering full compliance checks for contractors.
Pricing: $29 per contractor/month. Their premium product with full compliance checks costs $99 contractor/month.
How to Choose a Contractor Management System
When selecting a contractor management system, consider the following factors:
- Regulatory Compliance: Ensure the system helps your organization adhere to local and international labor laws, tax regulations, and industry-specific standards. This ensures that legal risks and potential penalties are reduced.
- Automated Workflows: Go for software that automates repetitive tasks such as onboarding, document verification, and payment processing. This will enhance overall business efficiency and minimize manual errors.
- Integration Capabilities: The chosen system should seamlessly integrate with your existing tools, including HR platforms, payroll systems, and project management software, to ensure data consistency and streamline operations.
- Customization Flexibility: Select a platform that allows customization to fit your organization's unique processes and requirements, ensuring it adapts to your specific operational needs.
- Organizational Fit: Assess how the system aligns with your company's structure and workflows, ensuring it supports your team's daily activities without causing disruptions.
Problem-Solving Capability: Identify the specific challenges you face in contractor management and evaluate how effectively the system addresses these issues, whether it's compliance tracking, communication hurdles, or performance monitoring.
Why Playroll Stands Out
While there are many strong contractor management solutions on the market, Playroll stands out for its competitive pricing, dedicated support to businesses of all sizes – and built-in compliance to hiring globally.
Avoiding Employee Misclassification Risk
While hiring independent contractors comes with many perks, government authorities worldwide have started clamping down on the issue of misclassification of employees as contractors, which can open up businesses to hefty penalties.
Playroll does free misclassification assessments to protect clients from these risks, helps set up compliant contractor agreements, and ensures that your IP belongs to you when working with contractors. Dedicated support in these areas comes free of charge, unlike many competitors. When hiring globally, these are essential features to scale your workforce without risk.
In addition, Playroll offers businesses the ability to hire full-time employees compliantly in 180+ countries, and can help convert your independent contractors to employees if needed. This helps your business remain flexible to any future workforce needs, without bringing any additional third-party services on board.
Book a chat with our team to find out how we can help you scale your global team, without the red tape.