Unique ways to increase retainment of 1099 contractors
Posted by Checkbook on Aug 10, 2022
It is a gig economy! Part-time employees, gig workers, and or 1099 contractors are growing in popularity, making up over 30% of this country's workforce. More people in this economy want the freedom to work where they want and when they want in ways that the traditional work environment doesn’t offer.
How to keep 1099 contractors happy
1099 contractors are always looking for more opportunities, better projects, and different ways to earn income. With remote work, part-time hours, and specific tax requirements, 1099 employees have unique needs and challenges that most companies don't address.
Here are simple ways to increase the retention rates of 1099 contractors:
- Provide “Credits” - 1099 employees don't get benefits like health insurance or 401K contributions. Provide benefits 1099 employees will find valuable, like a monthly bus pass, health/wellness credit, or holistic experiences (e.g., grief counseling). These benefits will help these contractors feel valued.
- Competitive pay - Paying a bit more than full-time employees helps 1099 contractors pay their taxes (not withheld in their paycheck) and provide for themselves with competitive pay.
- Pay invoices on time - Choose a platform that supports automatic payments or collaboration of team members so your company can provide on time/quick payments for all contractors. Checkbook includes these and other features perfect for companies that have one or more 1099 contractors.
- Allow diverse payment methods - A significant amount of 1099 employees don't have access to bank accounts. Therefore they can't receive money through ACH or check. Choose a payment platform like Checkbook, that will allow a “virtual credit card” - a payment method that does not require bank accounts or any banking information to receive payment.
- Support their passions - Provide free programs that support a contractor's passions outside of work. These free programs will increase productivity and make people feel happy.
- Provide guidelines and attainable deadlines - Full autonomy with zero details and deadlines might work well for some 1099 employees. Still, research shows that most contract employees work best with set company goals and clear deadlines for all projects.
These benefits will not only help companies save time and money, but retain contractors for the long-term!
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