What percentage of your workforce consists of freelancers and independent contractors? 10% Maybe 20%? A new report found that nearly a third (32%) of today’s total workforce is comprised of non-traditional and non-employee labor.

People are your business’ most important asset. Despite the cliche, the words ring truer than ever. Your business can only go as far as your people take it. And with the shift towards on-demand talent in full swing, we couldn’t help but wonder: are you using a contractor verification system to vet your 1099s?

The hiring of mediocre contractors to represent your business can have far-reaching consequences. Poor work quality and sub-par customer experiences can not only damage your brand, but also your bottom-line.

So what are today’s service businesses doing to ensure the quality of their independent contractors? Some have intensified their hiring requirements, while others have turned to technology…Freelance Management Systems (FMS) to be more specific. Typically a central component of a FMS, a contractor verification system allows businesses to thoroughly vet independent workers through a variety of methods.

The bottom line? If you rely heavily on 1099 contractors to generate revenue and service customers, you should strongly consider adopting an FMS that includes a contractor verification system. Here are 5 reasons why…

1) Curate Talent Pools of Top Contractors

The top FMS software on the market allows you to build talent pools of premier techs. You can create customizable criteria for your talent pool that ensures every contractor admitted possesses the necessary skills and certifications your business requires.

You can create different talent pools for different types of work (installation vs. maintenance) Over time, you can incorporate new requirements into your talent pools so that your bench of technicians evolves alongside your needs of your customers.

2) Test Techs with Skills-Based Assessments

How do you know the contractors you hire have the specific skill sets your business needs? Are they Cisco certified? Do they have experience fixing HP laptops? Let’s be realistic, you won’t be able to tell from a standard resume or phone interview.

Most FMS platforms feature a learning management system (LMS) that allow you to create customized tests to assess their specific skills. You can validate their capabilities in a matter of minutes and rest assured they possess the know-how to effectively service your customers. Oh yeah, you can also use the LMS to train contractors during the onboarding process.

3) Utilize Background Checks and Drug Screens

Contractor verification systems within FMS software even allows you to vet contractors more intensely using various screenings, including drug tests and background checks. An FMS automatically facilitates the process, verifies the results and notifies you accordingly.

This allows you to find the best, and most reliable contractors, on the market and eliminate costly surprises during the onboarding process. Even if your company doesn’t typically require these screenings, it can’t hurt to have this option in your back pocket.

4) Use Marketplace Ratings To Find Top-Performers

FMS software requires technicians to fill out detailed profiles with information that includes everything from a headshot and resume to work experience and certifications. More importantly, historical quantitative ratings within an FMS allow you to sort and evaluate contractors based on a slew of criteria.

You can choose to only work with contractors who have the highest ratings, not unlike how you evaluate buyers and sellers in eBay. Over time, these aggregated ratings allow to easily find and hire the top contractors available.

5) Verify Certification, Licenses & More

Many service organizations require their field techs to possess insurance, licenses and even certifications before being able to service customers. By using an FMS that automatically verifies this information, you can ensure compliance with legal/industry requirements and deliver exceptional work quality.

FMS software with a contractor verification system runs continuous checks on the contractors in your talent pool to make sure their certifications and insurance is up to date. If certifications are expired, the contractors are automatically removed from the talent pool after being notified. Not only does this save you tons of time and effort, it also helps greatly mitigate your company’s liability.

Without an FMS in place, service organizations run a sizable risk in ensuring work quality, staying compliant and accessing top talent. The business case is clear and the question is simple, can you really afford not to be using a contractor verification system?