Independent contractors currently make up over a quarter of US workers

However, enterprises cannot easily substitute staff with freelance workers without encountering substantial risks, as noted by McRae. Freelancers are most suitable for specific projects with well-defined outcomes. Assigning them the same responsibilities as former employees, without altering the job description or workflow, can result in legal and operational challenges, she pointed out. With the increasing reliance on non-traditional staff, risks such as worker misclassification, holding multiple jobs simultaneously, regulatory compliance issues, and costly errors like rehiring underperforming contractors or overpaying for services also rise.

“I have witnessed this in companies that implemented hiring freezes, prompting business leaders to engage contractors to maintain their operational efficiency,” she noted. “This practice can lead to financial vulnerabilities—where there is a lack of visibility or data tracking, organizations may discover that different departments are paying the same contractor or freelance provider at varying rates for identical tasks.”

Moreover, there is a concern that external contractors may not properly screen temporary employees, who might lack the essential certifications and training to adhere to local or national regulations, McRae further explained.

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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