Remote working has been around for years, but in recent times has become more popular because of the flexibility it gives the workers. It’s also become more popular for businesses as a way of reducing some of the costs associated with full-time employees, in addition to giving them more flexibility with their workforce.
Many companies are now including the remote workforce as part of their workforce strategy. However there is more to identifying different types of talent when planning your workforce management.
Onboarding is at the forefront of the talent acquisition supply chain. Finding the talent is only the first part. Once you find the talent, it is critical to then have them onboarded correctly.
The critical aspects to onboarding:
is the worker being engaged with the correct classification? Are they really an independent contractor or should they be categorized differently. The terms for worker classification are different in each country, as are the categories used. Misclassification of a worker can lead to high costs and fines.
Misclassification of workers occurs when an employer improperly classifies their employees as independent contractors so that they do not have to pay payroll taxes, minimum wage or overtime, or comply with other wage and hour law requirements such as providing meal periods and rest breaks. Misclassification, or labeling a worker as an independent contractor when they should be an employee, undermines businesses who play by the rules and basic worker protections like minimum wage, paid sick days, and the safety of workplaces. Additionally, the misclassified worker has no workers’ compensation coverage if injured on the job, no right to family leave, no unemployment insurance, no legal right to organize or join a union, and no protection against employer retaliation. This is a form of fraud.
A growing number of states have addressed employee misclassification. Some of the activity has been from the executive branch, through the creation of state task forces or issuance of state executive orders. State legislatures, however, also have taken steps to hold employers responsible for deliberate misclassification of employees as a means of avoiding taxes and coverage for workers compensation, Social Security and unemployment insurance.
Worker wage claims asserting misclassification of a worker’s status under state and federal law have been around for decades. Similarly, state claims seeking unemployment and certain tax contributions from employers have been increasing for many years. But despite these long-standing trends, the number of workers calling themselves independent contractors, “gig workers” or “freelancers” has dramatically increased for many years.
In addition to worker classification, there are other checks required before engaging the worker, to ensure they’re being engaged compliantly.
Vetting is the process of thoroughly investigating an independent contractor / freelancer or self employed worker before making a decision to go forward with engaging them. A background check is part of the vetting process.
Right to work is also part of the vetting process. This is particularly important when engaging talent globally.
At CXC, we have developed our own proprietary compliance platform, that allows companies, to engage talent quickly and compliantly, with functionality servicing over 50 countries around the world.
Due to workforce and mobility changes in 2020, a new set of challenges have arisen for those wanting to engage independent contractors or freelancers. We’ve listed below some current scenarios you may be faced with.
Scenario 1: You have a new project that’s getting ready to ramp up. You put the feelers out and used your network and talent marketplace to identify the talent for the project.
Scenario 2: You have an existing project underway, but you need to bring on additional talent, however they are in another country.
Scenario 3: You’ve had some international contractors working on a project, but they’re having difficulty with visa and work permit renewal. They now have to return to their home country and you want to keep them working, but now it’ll be remotely.
In all the above scenarios, CXC are able to step in and manage the whole onboarding process. In some cases, we are even able to assist with access to talent and finding the right person to fit the role. Once the onboarding is complete, we can take it a step further with independent contractor management, including timesheets, centralized invoicing, currency conversion and global payroll, including paying the workers in their local currency.
Visit CXC Comply or contact us directly to talk about how we can assist you to implement a compliance friendly talent acquisition, onboarding and ongoing management strategy for your global workforce.