Corporations, nonetheless, can’t merely change staff with freelancers with out dealing with important dangers, McRae famous. Freelancers are finest used for outlined tasks with clear deliverables. Utilizing them to do the identical work as former staff, with out altering the function or workflow, can result in authorized and operational points, she stated. As reliance on non-employees grows, so do dangers like employee misclassification, twin employment, compliance issues, and expensive errors reminiscent of rehiring underperforming contractors or overpaying for providers.
“I’ll see this at organizations that instituted hiring freezes, so enterprise leaders turned to contractors to proceed to have the ability to meet their targets,” she stated. “It could additionally create monetary dangers — when there isn’t a lot transparency or knowledge assortment happening, organizations could discover that they’re paying the identical contractor service supplier or freelancer completely different charges in several departments, for a similar set of duties.”
There’s additionally a danger that third-party contractors aren’t vetting temp employees, who could not meet the mandatory certifications and trainings to adjust to native or nationwide laws, McRae added.
