10 Apr Does Your Compensation Solution Cover Contract Workers?
Compensation solutions use technology and automation to address some of the most complex compensation management challenges. And, oftentimes one of those challenges is managing pay plans for different groups of workers. In particular, the modern landscape of the workforce is evolving, with more freelance and contract workers than ever before. For the first time, the majority of U.S. workers are projected to be freelancing within 10 years. Is your compensation solution equipped to handle pay for your entire workforce – contractors included?
The Challenges of Contractor Pay
On the surface, hiring contractors might seem like it would be simpler for compensation and benefits professionals. After all, like most part-time workers, these professionals are typically exempt from the benefits full-time employees receive. Yet, companies like Google, whose workforce is made up of mostly of contract employees, are beginning to offer some benefits, including sick days, parental leave, health care, and even tuition reimbursement to this portion of their staff.
Beyond meeting the evolving expectations of contract workers, however, HR faces unique back office challenges when it comes to administering pay for this group. Contract negotiations must align with the company’s overarching compensation philosophy and fit budgetary restrictions, but oftentimes, information is siloed. Managers responsible for hiring contractors are usually the ones who negotiate pay with contractors, and HR can be left out of the loop as a result.
How a Compensation Solution Can Help
Compensation management software creates visibility at all levels, so managers know exactly how much of the budget can be dedicated to freelancer workers, as well as their own internal team. At the same time, upper management and HR also maintains a direct line of sight into pay decisions made for all workers, contractors included.
And, these solutions are scalable and can grow to meet both the needs of your organization and its workforce in the future. Thus, should you choose to extend benefits to any non-full-time employees in the future, you can invite them to use your compensation management platform in the same way you would with your traditional workforce to make benefits visible and independently accessible.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.