Top 6 Unexpected Dangers of the Contractor Workforce

From cost savings to staff flexibility, there are a number of benefits to hiring an independent contractor workforce as opposed to a full-time employee. However, the process is not always as simple as it seems, and in some cases, the risks can outweigh the benefits.

The following are six unexpected dangers that can result from hiring an independent contractor:

1. Risk of government audit

We know that you would never try to cheat the system, but it’s important to note that misclassification of an employee as a contract worker can result in big problems with the IRS. The financial risk can be significant if a state or federal audit finds that an employee has been misclassified as an independent contract worker.

2. Lack of copyright

Just because you hire an independent contractor to create a work that can be copyrighted—such as an article, book, or photograph—does not mean that you are considered the owner of the work at the end of the engagement. In order to ensure ownership of copyrighted materials, it is important to get a written agreement transferring copyright ownership from the contract worker to you or your organization.

3. Sensitive company or customer information leaks

When it comes to IT access for contractors, corporate policies are widely varied. Some enterprises permit contractors to only used corporate-owned devices, while others allow contractors to use non-corporate owned devices. Still others “solve” this policy dilemma by sending contractors only the information related to the work they will do. This is the scariest option because the data is most likely shared via unsecure communications; sitting on the contractor’s unsecure laptop or mobile device co-mingling with personal or information from other clients, and may not be destroyed after the end of the engagement.

This risk becomes a non-issue, when tools are put in place to protect this data, while still allowing contractors access to the information necessary to complete the task at hand. Moka5’s secure container eliminates data leaks and IP loss.

4. Malware infections and unauthorized intrusions

Your organization will always be at risk for malware infections and unauthorized intrusions, however, opening up your server to individuals outside of your organization—including contract workers—only increases your risk. Although it is important to mitigate these risks by maintain centralized control, it’s also important to distribute trust out to the contractors.

5. Restrictions on firing

Unlike with a traditional employee, your right to fire an independent contractor depends on your written agreement. If you fire an independent contractor in violation of the agreement, you could be liable for damages.

6. Access to internal systems post-engagement

In 2009, a former Fannie Mae IT contractor made headlines after he was indicted on charges of planting a virus that would have caused millions of dollars in damages and even shut down the corporation’s operations. How did it happen? The contractor was terminated, but his server privileges were not.

Even in a situation that doesn’t include a disgruntled employee, access to internal systems post-engagement, can pose a big risk for organizations. Keeping your organization’s data in the hands of your organization only is easy when the tools are put in place at the start of your engagement. Moka5, for example, allows for simplified image management, updating and wiping.

Being aware of the risks of hiring a contract worker beforehand will help allow you to take the measures necessary to protect your organization from these unexpected dangers. Tools, like Moka5, can help eliminate many of the IT-related risks that come along with the contract workforce. For more information about Moka5 for the contractor workforce, visit our Contractor Workforce page.

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