If you’re like most HR professionals, you’re always looking for ways to mitigate risk in your organization. And with the rise of the gig economy, managing independent contractors has become a hot topic. But what if I told you that there’s a way to use AI to manage independent contractor risk? That’s right – read on to learn how AI-driven HR tech can help you stay ahead of the curve on managing IC risk using data and industry knowledge.
The rise of the independent contractor
As the gig economy continues to grow, more and more people are working independently as opposed to, or sometimes in addition to, being full-time employees. The increased availability of digital platforms and talent marketplaces has allowed individuals with specialized skills to take control of their careers. No longer needing to rely on employers to offer jobs, independent contractors are establishing themselves as rebels in pursuit of work that aligns with their passions and interests. By taking ownership of their professional lives, these enterprising individuals are capitalizing on an ever-evolving gig economy that is quickly changing the way individuals advocate for themselves and secure new opportunities.
The challenges of managing independent contractor risk
Managing independent contractor risk can be a tricky business. Someone isn’t an independent contractor just because the contract says so – there are key restrictions on who can be legally classified as an independent contractor. It’s critical that businesses remain compliant and avoid the pitfalls of misclassification or worker classification errors. This can require a thorough and deliberate assessment of compliance measures and an ongoing awareness of related risks. Otherwise, organizations may find themselves in hot water dealing with heavy penalties and fines. Ensuring compliance is an absolute must for any business who wants to stay ahead of the curve, so it’s important to make sure you’ve got your bases covered when managing independent contractor risk.
Another reason companies must be sure to make compliance a priority when managing their extended workforce is to ensure an equitable future for independent workers. Worker classification impacts things like benefits, wages, and overtime eligibility. While independent contractors can often enjoy the freedom of working flexible hours, they must still be provided with fair compensation and benefits in order to ensure their well-being and success.
How AI can help manage independent contractor risk
The data and industry knowledge needed to help manage independent contractor risk isn’t always easily available, but cutting-edge artificial intelligence can come to the rescue. The world’s first AI-driven classification engine enables businesses to automate their independent contractor compliance using data and industry knowledge, advancing risk management strategies beyond manual processes. By assessing data and refining it with expert-trained analysis, AI inventions like this provide an unprecedented level of accuracy and remove guesswork from managing IC risk. Risky business? Not a chance when you have intuitive and automated tools making onboarding and paying workers quick and easy for everyone.
The benefits of using AI to manage independent contractor risk
We understand that risk is always present when dealing with independent contractors – so why not arm yourself with the best tools and resources to keep your business safe? We are your legal, HR, and tax experts; with AI on your side, we can help protect you from risks and complexities that come with working with independent contractors and freelancers. We’ve got your back so take advantage of our cutting edge technology to lessen the risks that come your way. Plus, our mobile friendly platform gives you full visibility with live access to all your data, making organizing your extended workforce a breeze.
The future of AI and independent contractors
The wave of the future is here, and it’s in the form of independent work. As legislation is rewritten to redefine the concept of an independent contractor to meet with the changing landscape, AI is helping businesses stay current and compliant in a way that’s automated. For those on the cusp, this is a perfect opportunity to evolve: develop new skills, simplify your life, stay current on technology advancements, and keep pushing forward in this climate of change.
In an ever-changing gig economy, it’s more important than ever to have a handle on your independent contractor risk. Luckily, AI is here to help. By automating the onboarding process and managing compliance risks, you can free up time and resources to focus on your people and business goals. GreenLight is at the forefront of this technology, so book a demo today and see how we can help you manage your independent contractor risk.