How to Ethically Employ Contract Workers

 

Outsourcing labor to full-time, third-party contractors has become increasingly common. While some want the flexibility a contract role can provide, research shows that these workers—who are more likely to be Black, Indigenous, Latinx, women, and nonbinary—often do the same work as their directly employed peers while making less money, receiving fewer benefits, and experiencing significant job precarity. As a leader, you can pursue the following strategies to reduce harm and mitigate company liability when it comes to contract work. 

  • Fair pay. To ensure your contract workers receive family-sustaining pay, be explicit about how much you expect staffing agencies to pay them. Make sure you’re paying them the same rates as full-time employees who do similar jobs.
  • Workplace safety protocols and worker voice. Create clear channels for contract workers to report problems, and include them in company-wide communication streams. This will boost morale and your organization’s accountability around how these workers are treated. 
  • Pathways to direct employment. Provide contract workers with development training and meaningful career pathways to full-time employment. This has the added benefit of building a pre-qualified, diverse pool of talent for your company.

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