If the internet was the spark that started the digital revolution fire, COVID-19 certainly fanned the flame. Humans did what we do. We stretched our resources to adapt to the new reality. Technology carried the flag and enabled many companies and workers to stay afloat with remote workplace solutions. But, as always, technology has limits. No matter where your workers are located and whether you ever see them face to face or not, human capital is still your most valuable resource. It’s worth taking a little extra care to keep the human in your human capital management.
Unfortunately, the reality for many temporary or contract workers is difficult. Often, they lack access to benefits, work overtime without corresponding compensation, and deal with clients who pay late or don’t pay at all. So when you go above and beyond, you earn trust and loyalty from you workers and for your brand as a whole.
As the workplace becomes increasingly digital, the human piece becomes even more important.
Here Are Two Ways to Keep the “Human” In Your Human Capital Management Even In a Digital World
1. Classify Workers Correctly
It’s easy to think of worker classification in terms of compliance. And it’s true! Classifying correctly keeps the IRS off your back. But it’s also a way to take care of your people. The better you do up front at classifying accurately and setting expectations clearly, the happier workers will be.
Accurate worker classification is an essential starting place. It’s easy to get wrong, but with your reputation and large fines on the line, it’s also important to get it right. Here’s a list of the most common classification errors and how to avoid them. Here are some basic guidelines for identifying the difference between employees and independent contractors.
On the other end, employers often have a difficult time keeping up with contractor and freelancer management. It’s time consuming to stay on top of ever-evolving laws, minimum wage and overtime changes, benefits eligibility, and the differences between state and local regulations. It is a worthwhile investment, though. It raises businesses to preferred client status among contract workers and helps protect them from costly fines, to boot.
2. Pay temp employees and freelancers accurately and fairly
Pay accurately and on time. Some big companies make a habit of net 90, but we don’t recommend it. Net 30 is more ethical and ultimately better for business. Here’s why. Overtime regulations or minimum wage debates are in constant flux, but here are our suggestions on this front.
Be proactive about benefits and keep up with evolving state and local laws rather than waiting for workers to knock on your door. Transparency is a great way to build trust.
The bottom line
We know you care about your freelancers, but they only know it if you show it. Taking these measures can help you keep the “human” in your human capital management. The major bonus of handling your freelancers in an ethical way is that it keeps you compliant.
We know you’re busy. If you don’t have the time, resources, or desire to pay attention to all the details, hire an expert to keep track of contractor and freelancer management for you. Our team of experts and our PayReel OnLine software are fully equipped to help you sort out the rules and execute processes while also balancing contractor expectations, legalities, and company budgets. This quiz can help you decide if you’d benefit from hiring a team like PayReel.
We help you care about your workers even when you’re short on time. We think happy workers and peace of mind are pretty close to priceless.