A great re-shift of the current workforce has changed the way that businesses think about hiring and retaining talent. A record-breaking number of people have resigned from their jobs since the summer of last year – and the trend has only continued through the beginning of 2022. This so-named Great Resignation is only speeding up.
It’s interesting to note, that people haven’t stopped working, instead, they are resigning from full-time, traditional, 9-5 jobs as they search for better balance and more fulfillment from their careers. During this time, the freelancer economy has been booming. In fact, 50% of Generation Z (ages 18-22) now participate in freelance work. With so many young workers gravitating towards flexible work, the rise of the freelance economy is likely to only grow – and fast.
An MBO study found that 82% of freelancers are happier working independently. Their biggest reason for choosing freelancer work over traditional employment? The ability to work when, and where, they want. As a result of this shift to freelance work, more and more of the workforce is location-independent. Not only are they working from home, now they are working from just about anywhere.
Working from anywhere…means paying people everywhere.
The benefits of this new, “work from anywhere” model can be felt on both sides. Workers get a flexible schedule and zero commute lifestyle, whereas businesses see a reduction in costs and the ability to expand their hiring network to just about anywhere.
Just like work from home, work from anywhere means you now have your talent spread out over different locations; a logistical challenge for sure. One of the largest challenges? How to pay this flexible piece of your workforce. Freelancer payments are different than what many businesses are used to. Unlike full-time employees, freelancers need to be paid flexibly and quickly.
If you’re currently paying for a variety of work types, does your current payment provider handle W2 AND 1099 payments? If not, it’s time to reconsider your payment strategy. Choosing one provider who can process payments for both types of classifications means a simplified, streamlined experience for you and your team.
Rather than try and have an internal HR and payroll department try to tackle freelancer onboarding and payments, companies should outsource this work to freelancer specialists. AllWork helps companies do just that. Our freelancer payments platform makes sure that everyone on your team is paid on time and compliantly. Freelancers also need to be classified based on what type of job they do, how often they will do it, and if that work is vital to your business. Make sure you chose to work with a platform that not only issues flexible payments but will make sure every freelancer is correctly classified as 1099 or W2.