Contingent Workforce & Compliance: How to minimize your business risk.
Businesses strives for any competitive advantage they can gain in the greater pursuit of financial success, product improvement and client satisfaction. In an age of Globalization and evolving eCommerce, the world has become an interconnected, networked economy that pushes away the limitations of the past. Globalization has allowed today’s businesses to source, attract and engage talent like never before due to the advancements made in human capital engagement technology and the evolution of Independent / Gig Economy workers. The “Future of Work” is predicated on the idea that businesses can source the talent they require for critical initiatives in an on-demand manner.
As the Contingent Workforce Industry and Gig Economy continues to develop and grow (30% over the next few years), companies are actively expanding their contingent workforce management (CWM) programs to not only engage more highly-skilled independent workers via innovative sources, but also magnify a presence in new regions and locales. However, as CWM programs face the tall task of global expansion, managers must realize that, in order to be highly effective and efficient, the realms of compliance and visibility are of the utmost importance.
Compliance Impact Areas
Below we’ve listed some of the compliance impact areas for your business:
- Federal audits to determine degree of non-compliance
- Judgements, consent agreements, or class action – very costly – can directly relate to misclassification of workers.
- Identity issues: Who are our workers?
- Adherence to localized & culture-specific labor laws
- Complex and frequently changing local tax codes
- Shifting legal requirements concerning independent labor
- Localized and culture-specific labor laws
Outsourced compliance management solutions from a Contractor Management Organization can assist organizations as they tap into the global talent pool and utilize independent skillsets from around the world. These offerings are built with global expertise, efficiency, and compliance in mind. Outsourced compliance management solutions provide services for contractor administration (taxation, cmpensation requirement management, etc.) and assist users in engaging freelance and independent talent without the worry of compliance risks. Research has found that businesses utilizing these solutions are more likely to be enabled with important capabilities and strategies for managing global compliance.
If you’d like to talk more about Contractor Compliance Management locally in the U.S. and globally and how a Contractor Management Organization like CXC Global can assist your business to ensure compliant worker engagement, please complete the below form and one of our team will contact you directly.
Written by Kathryn Hopkins.