independent contractor

An independent contractor is someone who performs a task for a company, but is not an employee. The IRS has standards to help distinguish between an independent contractor and an employee.

An independent contractor provides services under a contract without being subject to the employer’s control over how work is performed, unlike an employee relationship.

- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.

- Example: Management applies **independent contractor** when designing policies and monitoring performance against targets.

- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.