By Glenn Laumeister, AllWork CEO
The nature of work is changing fast. Not long ago, Americans expected to spend years or even decades with the same employer, building unwavering careers that offered plenty of stability but left little room for freedom and reinvention. Now more than one-third of the U.S. working population – 36% – identifies as contract, freelance, temporary, or gig workers, according to the spring 2022 edition of McKinsey’s American Opportunity Survey.
That’s a sizable jump from the 2016 estimate of 27%, and the trend shows no signs of stopping: Statistics portal Statista predicts that freelancers will make up more than half the U.S. workforce by 2027.
For businesses, access to independent talent unlocks new opportunities to scale exponentially, pivot quickly, and launch new products and services at a moment’s notice. Recent advances in remote work technology make it easier than ever to quickly assemble the ideal team for every project, from anywhere in the world.
In theory, then, we’ve entered a new era of promise for independent workers and the companies that need their skills and expertise. But in practice? Most CFOs and HR professionals know too well how tricky it can be. Here are some of the reasons why:
- To onboard, classify, pay, and manage freelancers, companies must coordinate with expensive payroll service providers and staffing agencies – or they need to spend time and resources doing it all themselves. Since internal teams typically handle more straightforward employee-related tasks, they’re left scrambling to keep up.
- The need to maintain compliance amid ever-changing regulations creates headaches and bottlenecks while exposing businesses to legal risks and potential penalties. There’s an enormous administrative burden that comes with monitoring and enforcing state, federal, and local laws governing minimum wage, sick leave policies, overtime rules, workers’ compensation, and more.
- Many employers struggle to pay freelancers promptly because they lack the necessary infrastructure and aren’t equipped to process frequent payment requests at scale. As a result, they may face legal problems and fail to retain the best talent. Often, it falls on HR departments and CFOs to investigate payment delays and field complaints from duly concerned workers.
Fortunately, there’s a simple workaround to help businesses overcome these challenges and take full advantage of the expanding global network of independent talent: partnering with an employer of record (EOR). EORs are third-party organizations that serve as the employer for tax purposes while employees perform work at a different company. They assume responsibility for employment benefits, HR management, and oversight of compliance on their partner companies’ behalf.
As an EOR and payroll service provider, AllWork helps companies navigate the changing employment landscape. We’re unique among EORs because our software is purpose-built for flexible workforces, with everything you need for onboarding, managing, and paying freelancers in a single, end-to-end platform. What also sets us apart is our technology-first approach to everything we do: We harness automation to eliminate busywork and make teams more efficient.
Here’s how it works:
- We onboard and pay all types of freelancers on your behalf, taking care of all federal, state, and local tax and labor law compliance and filings. You won’t have to collect paperwork, classify workers, or devote internal IT resources to setting people up.
- Use our freelancer management software to manage and schedule shifts, book talent, track attendance, control budgets, and view reports from any location or device – without logging in to multiple applications. Just click to approve timesheets and invoices, and we’ll pay your workers within 48 hours.
- One system of record gives you complete visibility into the ROI of your independent workforce. You can optimize your labor spend just like you optimize your supply chain – using the power of technology,
As the world of work continues to shift, partner with AllWork to instantly build the infrastructure your company needs to collaborate effectively and securely with independent workers. We take all the administrative hassle off your plate so you can focus on what matters most: working with the right talent to move your business forward.
Planning to hire flexible workers this year? AllWork can help you onboard, manage, and pay them! We offer fast, easy, and compliant payment options. Get in touch at email@example.com to learn more and see a demo of our platform here.