Insights into the impact of providing earned wage access, offering competitive compensation, and utilizing freelance workers.
New technologies have presented exciting possibilities to improve talent acquisition strategies. However, with these advancements comes a unique set of challenges in regard to payroll management.
In this blog, we explore the latest opportunities for businesses: providing earned wage access, offering competitive compensation packages, and leveraging untraditional workers in the gig economy. We dive into the challenges associated with embracing these opportunities and offer insights on how your business can harness them to stay one step ahead of the competition.
Providing Earned Wage Access
As inflation and financial uncertainty persist, employees are increasingly requesting access to their earned wages. On-demand pay has become a very popular benefit for businesses to offer employees.
The challenge: It is important to figure out a system for offering this benefit that works best for your business. Employers can offer earned wage access through an employer-sponsored program or via third-party systems. These programs generally incur fees, so it's important to understand the ramifications of the tools available and determine the software and process that is most beneficial for your business.
The potential benefit: Providing access to on-demand pay is extremely valuable for many workers in the U.S. As such, it can help your business attract and retain top talent, which is a significant advantage as the year continues.
What your business can do: Start with your payroll provider to see what options they have available for you. Then, consider looking at third-party vendors that could fit within your budget and system’s integration capabilities.
Creating a Competitive Compensation Package
Recruiting and retaining high-quality workers is more challenging today than ever before. Today's labor market is highly competitive, and candidates have many options to choose from when it comes to employment.
The challenge: Offering benefits like flexible or unlimited PTO, healthcare cards, higher retirement plan match rates, remote working, and other perks can be great for employees, but they can also affect payroll calculations. It’s important for your business to ensure that your payroll process can accommodate changes in benefit offerings. This means considering the impact on taxes, deductions, and other factors that may affect payroll calculations.
The potential benefit: By offering a competitive compensation package, your business can increase recruitment and retention, and build a more satisfied and engaged workforce.
What your business can do: Start by reaching out to your current payroll provider and see what options they can accommodate. You may also want to consider working with a third-party payroll provider or benefits consultant who can help you design and implement a comprehensive compensation package that meets the needs of your business and your employees. This could include offering a mix of salary, bonuses, benefits, and other incentives that can help your business attract and retain top talent.
Utilizing Workers in the Gig Economy
The number of freelance and contract workers within the US economy continues to rise. As a result, your business may consider utilizing these types of workers.
The challenge: Accurately classifying a worker as an independent contractor and adjusting your processes accordingly is crucial for maintaining compliance with local, state, and federal laws. This requires your business to ensure that the worker's status is properly determined, and processes are updated accordingly. Moreover, managing and tracking payments, deductions, and taxes for contract or freelance workers can be complex and time-consuming.
The potential benefit: By utilizing freelance and contract workers, your business can benefit from faster and easier hiring, and avoid the costs associated with offering benefits.
What your business can do: Your payroll admins must be equipped with the proper tools and technology to handle these new payment models and manage compliance issues with these workers. Consider implementing a payroll system that allows for easy onboarding, tracking of worker information and payment processing for freelancers and contract workers. This can help you provide a valuable experience for these workers while also streamlining the process for your admins.
Stay Competitive with Greenshades by Your Side
As you look ahead to the opportunities that 2023 has to offer, it's important to consider the role your payroll provider can play in achieving your business goals. Greenshades’ solutions include comprehensive payroll and extensive support for benefits and HR management. Schedule a demo with one of our representatives and take the first step towards leveraging our expertise to help your business thrive.
