[Contributed Article] 3 Strategies to Equip Your Company for the Freelance Revolution - Kalo CEO Peter Johnston
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30 November 2018 / Freelance Economy

[Contributed Article] 3 Strategies to Equip Your Company for the Freelance Revolution - Kalo CEO Peter Johnston

Even if you hire just a handful of freelancers today, it's inevitable you'll consider more in the quarters to come. That's why you need to address infrastructure challenges through proper planning now.

When legacy industries, like the legal field, take on droves of freelancers, you know the rules of the working game have changed.

As an NPR piece illustrated, one West Virginia law firm is bypassing the tradition of hiring associates and paralegals and is instead delegating its mounds of niche work and tasks to freelancers and technological solutions. It's a bold way to reimagine legal life, but it also signifies that the freelance wave will hit the economy like a talent tsunami.

Although about 20 percent of positions are freelance today, NPR and Marist predict that freelancers will account for half of U.S. jobs by 2020. With this looming occupational shift, companies of all sizes will need to find a way to leverage the freelance workforce.

Faced with this new reality, members of C-suites must prepare for the influx of freelancers. Otherwise, they could be slapped with the harsh realities associated with unpreparedness.

Facing the freelance future head-on

Hard as it might be to imagine, the internet was once considered a fledgling concept. It was deemed a trend, a passing fad that would go the way of other promising yet poorly conceived ideas. That was, until, businesses envisioned what the internet could add to the future of shopping and retail. The companies that saw that potential (e.g., Amazon) were rewarded when that shift occurred, while everyone else is just trying to keep pace.

Think of freelancing as a second cousin of the early internet. Like the internet, companies that refuse to be proactive or pay attention to the emergence of freelancing open themselves up to several challenges that include financial shifts, potential legal problems and being labeled antiquated by their contemporaries.

Plus, a reactive approach to freelancing can drain a company's access to innovative talent and knowledge workers. America's economy is booming, stellar candidates are scarce, and there is a war for talent. Knowing that, top freelancers aren't desperate; after all, they're the hunters, not the hunted. They won't stick around with companies that treat them like second-class citizens, even at giants like Google and Facebook that are renowned for their great treatment of full-time employees.

Even if you hire just a handful of freelancers today, you can be sure you'll consider more in the quarters to come. It's an inevitability, even in fields that seem impenetrable to change. That's why you need to address infrastructure challenges through proper planning now.

1. Build an internal task force to enact your approach. If talent is a business's best resource, an internal task force dedicated to helping it live its best life is key. Coordinate a team with members from legal, payroll and other departments that can address this new workforce. The more voices you bring to the table, the less likely you'll be to expose your business to potential risks.

For example, appoint a group or its members specifically to track regulations regarding compliance and employee classification. One study reported that between 10 and 20 percent of employers incorrectly classify at least of their workers as an independent contractor. And with new freelancer regulation popping up whenever the wind blows, especially in the U.S., protecting your company from those types of gaffes is vital.

Netflix came under fire for a similar breakdown with its "Project Beetlejuice" system. The project paid participants $10 per film to watch and pick the most representative images and videos for that title. Participants claimed Netflix classified them as contractors instead of full-time employees to keep from paying overtime and time and a half, prompting a class-action lawsuit from two participants to be compensated as full-time workers. In the case of intentional fraud, the criminal penalties don't stop at the wallet.

Read rest of the planning advice, and the full article on business.com here:

3 Strategies to Equip Your Company for the Freelance Revolution

Peter Johnston

Peter Johnston

Founder & CEO @ Kalo

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