Between benefits like lower hiring costs, an increased talent pool, and greater flexibility, hiring contractors may seem like a no-brainer. That is, unless you worry about the mounds of paperwork and remaining compliant with local labor laws. Then there’s the complexities that come with global contractor hiring if you need to recruit internationally. 

That’s where independent contractor management software comes in. This type of software makes it easier to wrangle all the admin tasks that come along with hiring contractors. With the right software tools, small and medium-sized companies can capture the best contractor talent at a lower cost than hiring regular employees. 

Find out more about how independent contractor management software works, the details of some of the biggest platforms on the market, and what features you should look for when choosing a system. 

What is independent contractor management software?

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Businesses turn to contractor management systems to onboard, pay, and manage independent contractors, including freelancers and gig-economy workers. These software systems are typically cloud-based, and they can help you streamline a number of operations:

• Hiring independent contractors
• Onboarding
• Invoicing
• Processing payments
• Managing documents
• Ensuring contractor compliance according to local regulations
• Managing multi-currency transactions

Contractor management software also helps prevent errors due to manual entry, so you have accurate data to make informed decisions.

Companies of all sizes use independent contractor management software, including large international enterprises and small businesses that work with freelancers. 

The 5 best contractor management software providers

There are a lot of contractor management platform providers out there, but not all of them will have what you need. The best contractor management system balances automation with compliance safeguards for your business, and it should seamlessly integrate with the rest of your tech stack. 

Here’s an overview of some of the best contractor management software providers on the market today, plus the pros and cons of using each system. 

1. Thera 

Thera is a contractor management platform that offers a complete payment ecosystem for businesses hiring globally. 

You can send payments in more than 150 different currencies, and contractors have access to five different payout methods for added convenience. Thera’s low exchange rates mean that contractors earn 2% to 3% more per paycheck compared to other providers.

A few more things that set Thera apart include the following:

• Near-instant payments, which typically arrive the same day
• Fast contractor onboarding, which can be completed in 24 hours
• Premium 24/7 support 

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‍Pros:

• Thera offers industry-leading exchange rates (as low as 0.2%).
• Most contractor payments (95%) arrive the same day you send them.
• You get access to a dedicated Slack channel for customized support. 
• Thera has a quick and easy onboarding process you can complete within 24 hours.

‍Cons:

• Thera doesn’t offer a mobile app.
• The system might not integrate with all of your other tools. 
• Thera doesn’t help you find talent.

Competitor software frequently has high service fees and aggressive foreign exchange rates that become unsustainable as a company grows. Companies that need more flexible options switch to Thera to lower costs without losing talent. 

For example, the company 1840 & Company, which assists businesses in hiring and retaining global talent, decided to switch from a large, well-known provider to Thera because it could receive the same services at nearly half the cost of its previous provider. Thera helped migrate over 330 independent contractors to complete the transition.

As a result, 1840 & Company saw:

• $1,500 per month saved on service fees
• 15 hours per month saved on financial admin
• An increase in contractor take-home pay due to lower exchange rates

These wins enabled the company to continue expanding and outsourcing without the burden of escalating costs.

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Best for: Startups, BPOs, and fast-growing agencies that want to hire a global workforce without the hassles of the paperwork, complex admin, and compliance management that come with it

2. Deel

Deel is an all-in-one people platform designed to manage the entire global worker lifecycle. It offers human resources and talent management tools like learning management, performance management, and career management alongside local payroll and compliance. 

The platform also provides payroll processing for contractors as well as full-time employees. Plus, Deel offers a user-friendly mobile app for HR management on the go and a free human resources information system (HRIS) to help save clients money on their tech stack.

Pros:

• Access more HR features than you’d get from competitors.
• Get a free SaaS platform (Deel HR) included with services.
• Choose from more than 10 payment options for global clients, including cryptocurrencies. 

Cons:

• Deel has higher pricing due to its extra features.
• You might pay higher currency exchange rates than with competitors.
• Startups and small businesses may not need all the bells and whistles. 

Best for: Larger companies looking to manage all HR aspects in a single platform

3. Rippling

Like Deel, Rippling is a workforce management software that spans beyond contractor payments and risk management for international contractors. The company’s main goal is to reduce routine tasks and alleviate friction for business stakeholders. 

Rippling offers HR and benefits management, IT support, global and U.S. payroll, and expense management. These products work across a single platform so data can be shared freely among team members, enabling them to gain insights and automate processes.

Pros:

• Rippling’s products are localized for use in 140+ countries.
• You can integrate Rippling with more than 600 popular apps.
• Rippling lets you automate contractor invoices and approvals.

Cons:

• Payment processing can take two or more days.
• The initial onboarding process isn’t as efficient as with some other providers.
• Some parts of the user interface don’t feel intuitive, according to users on G2.

Best for: Larger businesses looking for advanced automation solutions and specific integrations

4. Gusto 

Gusto provides payroll, benefits, and human resources management software to small- and medium-sized businesses. It’s a popular choice for US companies that utilize independent contractors and freelancers to help manage paperwork, payments, and tax forms because it’s known to be user-friendly and cost-effective.

In addition to payroll, Gusto is a solution for offering health benefits, 401(k)s, time tracking, workers’ comp, and more. It provides pricing plans for everything from single-employee businesses to scaling mid-size companies.

Pros:

• Gusto doesn’t charge extra monthly contractor fees.
• Users get access to a simple, user-friendly platform. 
• Gusto files all necessary state and federal forms each quarter on your behalf.

‍Cons:

• Payment processing can take five or more days.
• Some users have had negative experiences with customer support.
• Gust offers less favorable exchange rates than some competitors.

Best for: Smaller companies made up of mostly contractors

5. Remote

Remote is an international human resources and employment of record (EOR) company with the goal of eliminating barriers to international hiring. The platform recruits, pays, and manages international teams across more than 170 countries while ensuring local compliance.

To avoid compliance risks, Remote has built-in misclassification risk features to protect your business against legal trouble as you scale. Misclassification happens when you accidentally label someone as an independent contractor when they legally should have been considered an employee entitled to certain benefits.

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Remote also offers a Watchtower service that commits to keeping clients informed about any changes that could affect their business, including changes to tax withholding and worker classification regulations.

‍Pros:

• Remote offers vetted recruitment services as part of the hiring process to help you find the right contractor.
• You can integrate the platform with more than 5,000 apps, including other HR platform providers.
• Remote provides unlimited indemnity coverage in case of litigation.

Cons:

• Remote offers fewer payment options for independent contractors than some alternatives.
• The global payroll implementation process takes several weeks.
• You don’t get a dedicated support team.

‍Best for: Businesses looking to manage recruitment, hiring, and payroll all within the same platform

Key features of independent contractor management software

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Every contractor workforce solution has its pros and cons, but any software you're considering should have these basic features:

• Automated workflows: Contractor management solutions should offer automation that saves you time on invoice creation, payments, and other routine tasks. Look for tools like bulk onboarding and payments to ease contractor management processes.
• User-friendly interface: Search for contractor management solutions that are intuitive and easy to use. The lower the learning curve, the less training your administrative staff and independent contractors will need.
• Centralized contract management: You should handle and store all contracts in the same platform for consistency, improved visibility, and better risk management. Centralized control should be a core component of your system’s functionality.
• Compliance management: Your system should keep all relevant documentation easily accessible for any compliance questions that might arise. This includes past timesheets, tax documents, contractor agreements, and safety certifications. 
• Transparent pricing: Many software providers boast reasonable pricing but fail to mention hidden fees or high exchange rates that add up over time. Choose a partner that’s upfront about pricing, including any fees and transaction rates.
• Accessible customer support: Solving payroll and compliance issues requires a timely response. Make sure the company you choose offers round-the-clock expert support.

Streamline the way you manage independent contractors 

Independent contractor management software streamlines global contractor hiring, onboarding, and management, taking simple payroll structures across borders. This drastically expands the hiring pool for small businesses that could benefit from working with remote contractors at reduced costs.

Thera offers competitive pricing, robust compliance tools, and unmatched FX rates. It can handle global payments efficiently and provides dedicated customer support via Slack for quick issue resolution. 

See independent contractor management software at its simplest by booking a demo.

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