You can’t help but notice. Everywhere you look, small businesses are displaying a “Now Hiring” sign.
That’s not the way to do it anymore. If you want to find employees, and keep them, you’ve got to tap into the Gig Revolution.
ADP presented a webinar on the topic Bridget Quinn Kirchner, senior director of client experience, and Abby Natelson, senior counsel for compliance solutions, presented the webinar.
According to ADP statistics, by 2027 the number of gig workers and subcontractors is expected to reach 86 million people. That’s about half of the work force. Small businesses need a way to reach those people.
We’ll hit the key points for you.
ADP Report on the Gig Economy in 2022
Posting a sign at your business can’t hurt. To truly tap into the Gig Economy you need a Freelance Management System. In other words, you need to find talent via use of the digital world – because that’s where the talent is looking for work.
Small Business Deals
Here are your steps to take:
Establish a landing page for recruitment. You can do that via your website or FB page. You can also opt to make use of already established software, such as Zoho Recruit, an automated hiring platform.
Contact via Continued Use of Technology
From the online contact from a subcontractor/gig worker, you should use technology to continue the process.
According to an ADP study, the majority of subcontractors/gig workers prefer electronic payments. If your business doesn’t have that capability, you need to purchase software that allows that to be done. Subcontractors like to be able to invoice electronically, and be paid electronically.
Reach out to your subcontractors/gig workers and ask them to rate their experience doing work for your company. Be responsive. If applicable, respond to suggestions.
Provide Regular Assignments
Subcontractors/Gig workers are on a budget. Having a predictable income from your small business is valuable for them.
Acknowledge the Blended Talent Trend
There are three basic types of workers:
- The W2 worker – The W2 worker used to be in the majority, but that is changing as Baby Boomers retire.
- The Temporary W2 worker – These are paid in the standard way, with payroll taxes applied. These workers are most often seasonal.
- The 1099ers – These are the subcontractors, Gig workers, freelancers.
Important statistic to digest: About 75% of Gen Z and Millenial age workers say they are likely to choose Gig or subcontracting work in their future. And they also say they’ll seek that work via online searches.
When does an independent contractor or gig worker become an employee? It’s important to remember that there are varying definitions for that.
On the federal level, the definition is standard. The feds want to know: does the small business have behavioral and financial control? What is the nature of the work relationship between the small business and the subcontractor/gig worker?
ADP’s Natelson explained further. If the work is integral to the business, the individual could be termed an employee. But if the work is temporary and nonintegral, and the business is not the sole source of the individual’s income, the individual is likely an independent contractor/gig worker.
States may have varying standards but generally follow what’s know as the ABC guidelines:
- A: Is the individual free from control by the small business.
- B: Is the work outside the usual course of work done by the business.
- C: Is the individual customarily engaged in trades, occupations or work of the same nature as the business.
Do the definitions seem broad? Subject to interpretation?
“It’s important to work with counsel,” Natelson said. “To minimize risk (of misclassification), do these things: evaluate workers on a case-by-case basis; grant as much control as possible to the independent contractor; and review and audit subcontractors annually for changes in circumstances.”