The labor market structure has been revolutionized to a substantial extent as the number of individual contractors and freelancers has been increased. In almost every industry, 68 million people are contributing to an independent economy either for flexibility and freedom to work or to earn some extra money. Working individually as a freelancer or contractor serves numerous benefits, not only to individuals but to businesses as they can shrink their hiring cost by contracting freelancers.
Businesses should facilitate contractors and freelancers by designing a framework that will enable them to navigate the work requirement. This is because they are their supervisors, accountants, HR, marketers, and administrators. Here is how businesses can benefit individual contractors and freelancers.
Offer Health Plan To Retain Individual Contractors And Freelancers
Individual workers will prefer a health plan over the gigantic budget of employers because health insurance always comes first. Businesses with limited budgets can offer health subscriptions to independent contractors to retain them. Having a health plan or subscription is a great deal when you are self-employed. If freelancers are provided with health benefits, they are more likely to sacrifice a high salary package.
Think of Yourself as The HR Department Freelancers Don’t Have
Trying to compute salaries, taxes, or manage pay benefits can be a daunting task for individual freelancers, or contractors. Businesses can retain the most talented freelancers by providing them with a helping hand to handle their administrative tasks. To maintain an efficient HR department without adding additional costs, businesses can source a PEO company for managing international payrolls, HR functions, and other benefits plans for individual contractors and freelancers. Without any further delay or hassle, a PEO company provides all the assistance needed for the smooth functioning of a business.
Business owners who work with contractors regularly know that these contractors must manage everything on their own. Thus, serving them as a helping hand and thinking of yourself as their efficient HR department can help them to work better.
Automate Financial Services
Automation tools can help businesses and individual workers to save estimated taxes and costs. Businesses dealing with individual contractors or freelancers are already aware of the tools and applications that can automate financial services. Through the application that connects you to your workers, you can automate financial services. A lot of companies are now offering automotive financial services that can be found through a simple Google search.
Provide Administrative Help
As the independent workers are managing everything on their own, they also need some support services and administrative help. Individual contractors are more likely to work with a client that offers additional services and efficient working procedures. These include quick onboarding, timely communication, a smooth agreement process, and responsiveness to problems. Businesses should make it easier for independent contractors to foster a thriving working experience.
Besides providing administrative help, businesses can benefit contractors by offering new opportunities, giving access to different training programs and courses, conducting meetups with other individual contractors, and making them feel valued.
Value Their Work And Efforts
Businesses become an employer of choice for individual contractors if they value their work. 96% of independent workers are more likely to stay loyal to a company that respects their work and efforts. Freelancers have shown their interest in working with employers who treat them as part of their team, according to a recent study by King. The workers have chosen to freelance or work independently because they want their work to be valued. Give them the freedom to work on their own and value their contributions.
Putting It In A Nutshell
People like to work independently and have the freedom to plan things according to their schedules. Businesses that don’t poke their nose into the work of freelancers are more likely to become employers of choice. Since the post-pandemic situation has reshaped working structures, businesses that believe in round-the-clock jobs will be left behind. Now people are more likely to be attracted to individual contracting and freelancing. The time has come to embrace change and benefit your workers so that you can increase your ROI.