There may be sound business or compliance reasons why a company doesn’t wish to engage an independent contractor, in which case they could consider:  Hiring employees. Employees can be permanent, part-time, fixed term or ‘zero hours’. Non-permanent options can be useful for businesses that desire flexible human resources Engaging a Professional Employer Organization (PEO). A PEO provides an alternative to direct employment or using independent contractors. The PEO employs professionals who then work under the day-to-day management of a client company.  Contractor management outsourcing (CMO). You still directly engage the independent contractor, but the CMO company takes over all compliance and payment processing tasks for independent contractors.