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Blog: 10 HR Considerations For an On-Demand Workforce

Date Published: July 07, 2022 | Last Updated:September 15, 2023 | By Accurate Background
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What is one consideration HR must make when moving towards an on-demand workforce?  To help you with what to consider when moving towards an on-demand workforce, we asked HR leaders and successful small business owners this question for their best insights. From pre-agreeing on overlap hours to balancing permanent employees and gig workers, there are several viewpoints to consider when moving towards an on-demand workforce.
Here are ten considerations for moving towards an on-demand workforce:

  • Pre-Agree on Overlap Hours
  • Provide On-Demand Pay for On-Demand Work
  • Keep a Solid Pool of Candidates for Future Positions
  • Create a Strategically Blended Workforce
  • Accelerate Onboarding & Training For On-Demand Workers
  • Clarify Employee Classification
  • Keep On-Demand Workers Happy
  • Grant Limited Access to Work Platforms
  • Weigh The Pros and Cons
  • Balance Permanent Employees And Gig Workers


Pre-Agree on Overlap Hours

When moving towards an on-demand workforce, HR should consider mandating and communicating mandatory overlap hours. Many contractors and temporary workers operate on flexible schedules and may hold other jobs. However, while the bulk of the job may be asynchronous, there may still be times when these workers should be online or available at the same time as managers or team members to collaborate or communicate. Blocking off a couple of hours each day or week for synchronous work can avoid delays or the shuffle of finding compatible schedule openings. It is much easier to release employees from this responsibility during slow times, than to impose the condition arbitrarily in the course of the contract. Knowing this commitment upfront allows employees to plan their time accordingly.

Tasia Duske, Museum Hack

Provide On-Demand Pay for On-Demand Work

Giving on-demand employees access to their wages as soon as they earn them affords them more peace of mind during these challenging times. Many people feel stressed over the rising cost of living. This economic weight is bearing down not only on their productivity but also on their relationships, sleep, and health. A whole host of physical and mental health problems can result from financial stress, which can be decision-makers when a worker is thinking about quitting. Allowing earned wage access enables team members to feel in control over their money, boosts overall wellbeing, and gives a feeling of economic resilience, especially in uncertain times. And for remote team members who are working while on the road, allowing them access to their earnings without waiting the two weeks for a paycheck enables them to keep pace with their expenses while being a location-independent employee. Earned wage access increases productivity, boosts job satisfaction, and reduces employee turnover.

Chris Gadek, AdQuick

Keep a Solid Pool of Candidates for Future Positions

An on-demand workforce, consisting of independent contractors and freelancers, paves the way to filling in new-generation positions, especially in marketing technology and cybersecurity. Because companies are rapidly shifting to digital transformation, HR must search for on-demand workforce candidates who are highly technical, agile, analytical, ambitious, and innovative. Integrating this type of workforce into your company’s strategic core can help prepare your organization for the big workforce changes in the future.

James Parsons, Content Powered

Create a Strategically Blended Workforce

Engaging on-demand talent isn’t about replacing your traditional workforce. Some jobs are better suited for full-time employees, and you’ll likely want to keep them in these roles. Instead, it’s about creating a hybrid workforce through a blend of traditional and on-demand talent.

Jessica Miller-Merrell, Workology

Accelerate Onboarding & Training For On-Demand Workers

Hiring on-demand workers, or freelancers, is becoming increasingly common. In companies that are hiring freelancers for any amount of work, HR needs to adjust the onboarding process in order to accommodate for their different needs. On-demand workers aren’t going to have the same amount of time that a full-time staff member would to go through a company’s full training sessions and seminars or work with a mentor to learn the ropes. The world of on-demand work is fast-paced and your company may not want to pay a freelancer for more training time than it has to. HR should look for ways to speed up the onboarding and training process for on-demand workers by determining what information is most important and condensing the training materials.

Dave Rietsema, Matchr

Clarify Employee Classification

The first thing HR needs to clarify when shifting toward more on-demand workers is how these workers will be classified within the organization. An employee’s classification determines what benefits they should be offered, how overtime is calculated, and the distribution of payroll taxes between the employee and the organization. Incorrectly classifying employees can lead to costly fines and other issues down the line, so you absolutely need to do your research in advance. Freelancers hired on a per-project basis can be classified as independent contractors, but depending on the terms of your contract and the type of work they’re doing, it may be wiser (or necessary) to classify them as seasonal/temporary employees or permanent employees. It’s up to HR to know the laws before bringing on any on-demand workers to ensure you’re complying with workforce regulations.

Archie Payne, Caltek Staffing

Keep On-Demand Workers Happy

You must keep your on-demand workers happy because their level of job satisfaction will have consequences on their performance. First off, it’s essential to start on the right foot and offer your on-demand workers fair and prompt compensation. You should be offering the going rate or more if their work is valuable to you. Offer bonuses if they perform above your expectations. Another way to keep your on-demand worker happy is to offer consistent feedback as you would with your salaried workers. Praise for good work goes a long way to making workers feel valued, and you should be applying the same managerial styles for your contract workers as you do for the employees you see every day. Tell your on-demand workers how they are doing, and don’t shy away from asking them what would make them happy. You’ll improve their morale, and they will want to do good work for you.

Mark Daoust, Quiet Light

Grant Limited Access to Work Platforms

One factor to consider when moving towards an on-demand workforce is granting limited or temporary access to work platforms. You may not want temporary or freelance employees to be able to view or participate in the full range of programs available to full time staff. Many platforms allow for customizable permissions so that you can grant users different privileges or levels of access. However, you should keep the potential of bringing on on-demand workers in mind when choosing software, as some tools have limits on how many users you can add within the plan or may not have an easy way to restrict certain content. Planning ahead can avoid the need to switch software or prevent contractors from viewing sensitive company information.

Carly Hill, Virtual Holiday Party

Weigh The Pros And Cons

There are many pros and cons to relying on an on-demand workforce. The shift toward an on-demand workforce is another indication that companies are making cost-efficient strategies a high priority. The benefit to an on-demand workforce is access to a diverse talent pool. People who work on-demand, or on a contractual basis, are highly motivated. They won’t make a good living if they miss deadlines or do shoddy work. The downside is that those who make up an on-demand workforce are always on the hunt for the next lucrative project. It’s hard to plan for the long-term when you’re relying on outside people who work for you in short spurts. Relying on them too much could make you miss the stability you once had when everything was in house. That’s something to consider when contemplating a potential strategy that involves an on-demand workforce.

Scott MacDonell, Bambee

Balance Permanent Employees And Gig Workers

One unavoidable pitfall in hiring an on-demand workforce is the loss of legacy knowledge. As one freelancer leaves, the company may face disruptions in business operations and lose valuable insights. It’s crucial to establish workforce management that balances the number of permanent employees and gig workers. This way, gig workers can boost the business model’s success without causing turmoil in operations when they leave.

Agnieszka Goulin, Spacelift

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