How to Hire an Independent Contractor in Indonesia –  Many small business owners prefer to work with independent contractors over hiring employees. Because independent contractors are not part of the permanent workforce and are not your employees. They are a one person business who works for the organization for a short time. Either for just a few weeks or for a few months.

Hiring a independent contractor can help your small business grow quickly. Before using an independent contractor, you need to know and determine correctly whether the individual providing the service is an employee or an independent contractor, because it is very important for you to know.

This article will cover the steps for hiring an independent contractor so you can quickly and appropriately hire an independent contractor to fill vacancies, help you meet the day-to-day demands of your business and move your company forward.

There are many advantages to hiring an Independent Contractor in Indonesia. The final decision always rests on your hiring goals and your long-term business goals.

Steps to Hire an Independent Contractor in Indonesia

Step hire independent contractor

Checklist to Hire Independent Contractors

If you are considering hiring a contractor, we advise you to take the following steps:

1. Evaluate Business needs for Independent Contractors

Many organizations use independent contractors based on their business needs or industry practices. Because every business has a different business culture. The decision to hire an independent contractor depends on the nature of the job and your needs. You can ask yourself. Whether or not to require independent contractors.

2. Evaluating Compliance Risks Hiring Independent Contractors

Pay close attention to the organizations current policy regarding independent contractors. Is there a worker classification process or not? then, do they comply with applicable laws or not, either state or local? If your company currently engages independent contractors, see if there are any recorded contracts and what information they include. Assessing gaps and areas for improvement in your own practice will help you determine what needs to change and what needs to be made when building a new program.

3. Considering the Business Model of Hiring Independent Contractors

Organizations are increasingly moving away from the traditional employee model, by applying the independent contractor model to some aspects of the business can reduce direct labor costs without compromising market share, productivity and efficiency. However, implementing the independent contractor model is not without risk and, given the current economic climate, independent contractor relationships have been and continue to face increased scrutiny. Hiring an independent contractor may be a viable option for your/organization, but there are risks to be aware of. The first step to avoiding it: understanding how independent contractors differ from employees—and how these differences affect how you manage them.

4. Recruiting Independent Contractors

To successfully recruit contractor independent talent, companies must consider how best to create an experience that is separate from traditional hiring. In general, it is important to prioritize setting up procedures that ensure smooth orientation, feedback and communication.

5. Independent Contractor on Board

To build a successful program, the first step is to make sure that the executives or leaders of the company participate.

These people/keys, must understand the value of a program and be willing to champion it among managers and those in need and will involve the talents of independent contractors.

To gain support, make sure to build a strong business case for the program, as well as research the potential return on investment, set clear goals, and include leadership, and their feedback, in the program design process.

6. Manage Ongoing Relationships with Independent Contractors

To be successful in properly managing contractor independent talent, your/organization must understand these differences and structure processes and procedures around them for the benefit of both parties.

Here are eleven ways organizations can build better relationships with independent talent.

+ Register with your state
+ Determine worker status
+ Write the job description
+ Build an independent contractor agreement
+ Legal responsibilities when you hire independent contractor
+ Wages and hour laws for independent contractor
+ Non-discrimination rules
+ Worker verification
+ Social Security and Medicare (if any)
+ Income tax withholding
+ Workers’ compensation insurance

What are the Advantages of Hiring an Independent Contractor?

  1. Can easily search for talent quickly all over the world.
  2. Hiring contractors is quicker and easier than hiring employees.
  3. Independent contractors can be more cost effective.
  4. Independent contractors don’t come with the same compliance challenges as employees.
  5. Access to a Wider Talent Base.
  6. Higher Efficiency.
  7. Staffing Flexibility.
  8. Independent contractors do not require training or resources to carry out their duties. Because they already have the skills they need.

What are the Disadvantages of Hiring an Independent Contractor?

  1. Laws on the classification of independent contractors vary by country.
  2. Independent contractors can be expensive in the long run.
  3. Independent contractors make employees may not feel valued by the company.

When Should you Hire Employees Instead of Independent Contractors?

  1. The job is not important to your business.
  2. The work can be done by a professional that does not require much supervision.
  3. Work is a short-term project that will be completed within a specified time frame.
  4. The worker has professional skills or someone who requires little supervision.

The decision to hire a worker as an employee or independent contractor is made on a case-by-case basis.


Many businesses can benefit when they hire independent contractors. Understanding about independent contractors will help you in your future business.

Prepare your business with the types of workers you need for long-term success by hiring independent contractors that make business sense, and comply with the law.

Indoservice provides independent contractor recruitment and management services, as well as employment solutions specifically in Indonesia for businesses seeking to hire.

Feel free to contact us to discuss the best options for your business.

Contact us at email  & Telp./Chat at +6281818811887 / +6287714498500

Employee or Independent Contractor and What’s the Difference?


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How to Hire an Independent Contractor in Indonesia
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How to Hire an Independent Contractor in Indonesia
Independent contractors are not part of the permanent workforce and are not your employees. They are a one person business who works for the organization for a short time. Either for just a few weeks or for a few months.
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