Is your payment system ready for the gig economy or are you just a big wannabe?
According to a Forbes article, 35 percent of the workforce have a gig, and collectively they earned $1 trillion from ad hoc work last year. But, freelance workers, who have come to expect payment as instantaneous as their work, are turning their noses up at outdated companies that can’t keep up. If you’re still mailing checks, might as well be using the Pony Express as far as tech-savvy gig workers are concerned.
We are on the precipice of a major sea change, and the traditional employment model is quickly becoming as outdated as the payment systems many employers still use. In order to remain relevant in the wake of the gig takeover, employers must consider emerging payment technology — or else run the risk of fossilizing and missing out on the many financial and procedural perks of gig work.
Time for a reality “check”
Freelance work exists outside of a traditional payment schedule — that’s part of the appeal for employers and employees alike. However, the growing popularity of gigs as an alternative to traditional employment, and the mounting excitement for al-la-carte career opportunities, is being stonewalled by corporate lethargy.
Outdated corporate payroll processes are too rigid to account for fluidity of gig work, and as a result freelancers oftentimes go unpaid. The burden of compensation defaults to the unpaid freelancers — who are quickly left disillusioned and knocking on the door of their employer saying, “check, please!” The Associated Press reported that gig employees are liable to be snubbed on payment due to negligence, which can lead to poor retention or even legal action.
The sad irony of freelance work is becoming obvious as the gig economy gains popularity: freelancers seek payment as immediate as their work is contracted, but employers simply can’t keep up. As a result, companies are missing out on cheap, efficient, and valuable work. One survey found that 84 percent of freelancers said they would do more work if they were paid faster.
Paper checks are the bottleneck for gig economy progress and we are long overdue for a change.
A Better Way to Pay
Nearly 40 percent of American workers will be independent contractors by 2020. With the gig economy takeover on the horizon, employers must adapt to a more flexible, modern payment system.
Listen up employers: it’s time to ditch the paper checks and set up direct deposit for freelancers. Automated payment through direct deposit saves time and money, enhances security, and makes paying freelancers hassle-free. Any gig employee who delivers regular work can be paid automatically through direct deposit with no added cost, no paper checks, and, best of all, no missed payments.
Equip freelancers with a rapid! PayCard where funds can be transferred electronically — eliminating the unnecessary step of scratching checks and saving you the worry of accidentally lapsing on payment.
Contact rapid! PayCard to learn how you can upgrade to the electronic corporate disbursement system SimplyPaid and improve payment efficiency by ditching paper checks.