Do you have the right payroll culture for the growing gig economy?
The gig economy is growing rapidly, with more than 57 million Americans classifying themselves as freelance workers – a number that is expected to grow to more than half of all workers in the next ten years. Is your payroll system set up to accommodate this expanding segment of the workforce? Or are you too tied to the traditional rhythms of full-time employees? To be successful, you need to develop a strategy and culture that makes room for project-based and hourly workers as well as your full-time staff. Here are four ways you can get there.
Be compliant If your company hires freelancers for various roles, you have to consider carefully whether they should be classified as employees or independent contractors. You might consider someone a freelancer, but the IRS may disagree depending on how often they work onsite and whether they have other clients. Be sure to work with your HR and legal departments so that you don’t wind up with unexpected tax bills. And keep in mind that these classifications can change as the gig economy continues to evolve. The Workforce Go! HCM time and labor solution can help you maintain compliance with simplified management processes.
Pay on time One of the biggest challenges freelancers face is getting paid on time. This is often coupled with poor communications about payment processes. Because payment to freelancers is frequently handled through a different process than standard payroll, there is often a lack of consistency and confusion regarding responsibility for seeing that these critical workers are paid, and paid on time. Take the time to create a company-wide policy for handling freelancer contracts, invoices, and payments. Workforce Go! HCM’s comprehensive suite of workforce management tools helps you streamline the payment process so that it takes less time to get your freelancers paid.
Keep track of time Tracking time can be enough of a challenge with your full-time employees – and even more so with freelancers. A separate process that allows freelancers to log their time and assign it to specific projects will ensure that you are effectively managing this fluid segment of your workforce. An automated workforce management solution like Workforce Go! HCM can help you establish a process while eliminating timekeeping errors and manual time tracking.
Find different ways to pay Many freelancers may have plenty of employment opportunities, but not as many ways to receive payment. Some may not have access to the traditional ways of receiving payment – checks or direct deposit – because they can’t afford the fees associated with a bank account. Others may choose the convenience of online payment options. To recruit the best talent, you need to be open to alternative ways of paying your gig workers.
Companies of all types and sizes are using gig workers in more ways than ever before. Getting their payment right is the key to success. Want to know more about Workforce Go! and how we can support your success? Contact us or call us today at 214-800-5575 to find out more.