The remote work has been established as a solution for businesses that are expanding to new markets. In this regard, having a global freelance workforce can provide excellent benefits to corporations.
However, hiring freelancers globally isn’t as simple as many may think. Although it’s a smart alternative, it’s necessary to carry out this task properly so you don’t have to face any legal headaches.
In this article, you’re going to learn about how to face the challenges that come with a workforce of freelancers. In addition, you can gain more understanding on why an Employer of Record dubai can be the perfect solution for this matter. Let’s observe:
- How to overcome the challenges of building a global freelance workforce
- What is a global workforce of freelancers?
- Why do businesses opt for hiring a global workforce of freelancers?
- What are the legal issues involved?
- Why do you need to worry about misclassification?
- What is the social risk of using a freelance model?
- What is the perfect choice for a freelance workforce?
- Why is Connect Resources your best option for a workforce of freelancers?
1. How to overcome the challenges of building a global freelance workforce
The COVID-19 pandemic caused many businesses to opt for remote working thus they decided to implement a freelance workforce. Nowadays, it’s a great solution for expanding businesses since they can hire from anywhere in new locations without facing all the complexities of establishing an entity in the target country.
Therefore, corporations rely on freelance contracts and gig models to save costs and take advantage of all the benefits this solution gives.
Nevertheless, it’s important to learn more about the difficulties you may face when you opt for a workforce of freelancers. It’s advisable to learn more about the problems you can get if you don’t pay attention to the areas of concern.
As a business owner, you want to avoid legal and compliance issues, and a freelance workforce can become a trouble if you don’t prepare to everything you may face.
1.1 Why do businesses rely on alternative labor solutions?
Having a global workforce of freelancers is an alternative labor solution since you don’t have to hire personally and have an office space for your business in your target country.
When a corporation is expanding to a new market, it has several options. It could set up a company, open a branch or opting for having freelance workers. Since company formation in the UAE can be difficult and expensive, having a remote workforce is a great alternative.
Some of the benefits businesses see in alternative labor solutions are the following:
- Skip the costs of making local incorporations
- Save costs on employee management
- Allows to have a small workforce available without too much troubles
- Gives more flexibility to the staff and the business
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2. What is a global workforce of freelancers?
A freelance workforce is used by many companies that are implementing a remote working landscape. In a workforce of freelancers, a company decides to hire workers with specialized skills for a determinate project or to complete a specific task.
According to the statistics, 36% of the global workforce is represented by freelancers. So, they’re a huge component of many corporations and for this reason many businesses decide to look for this type of workers.
When we refer to a global workforce, we’re talking about a company that has presence in several countries, i.e. a multinational, and therefore it needs people to carry out business functions in these places.
If a company opts for a workforce of freelancers, it won’t need to hire permanent employees and thus it will save resources and obtain several benefits.
2.1 What are the challenges associated with a workforce of freelancers?
Although having a workforce of freelancers may seem like a great option for multinationals, the truth is that it must be implemented with care.
The company needs to know about the hidden costs and challenges it may face once it enlists a global workforce of freelancers. For this reason, it’s important to be well-informed about this matter so you can take the necessary measures to avoid issues with your workers.
Some of the most common challenges you may deal with a workforce of freelancers are the following:
- Worker misclassification that may lead to legal issues
- Legal issues with intellectual property
- Employment issues that may lead to complaints
- Financial risks
- Lack of job satisfaction that may lead to poor performance
But, you don’t have to worry, since there is one option that can help you avoid all of these issues. With an EOR like Connect Resources you’re going to be able to have the workforce you desire without facing difficulties.
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3. Why do businesses opt for hiring a global workforce of freelancers?
Having a freelance workforce could give several advantages to a business. Since the COVID-19 pandemic, many businesses have reap the benefits of having remote workers, and freelancers are great because they work to fulfill a project or a task without you having to deal with all the hassle of a permanent employee.
Let’s observe the following benefits of having a workforce of freelancers:
- You could find a skilled worker for a short-term assignment
- It’s possible to hire freelancers for several areas such as customer service, HR, marketing and more
- It saves money to companies since they don’t have to spend in HR management
- The company and the freelancer can arrange the work in a way that benefits both
- The cost of hiring a freelancer is less than for a permanent worker
- It’s a great alternative for having presence in a new market. Instead of creating an entity, you hire freelancers
- It’s easier to define the tasks and they can be standalone
If you’re having trouble finding a freelance model that may work for you, it’s best to contact an expert that can assist you. Here in Connect Resources we want to help you achieve your expansion goals so we will ensure you get the freelancers you need.
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4. What are the legal issues involved?
When it comes to a freelance workforce, you need to understand the depth of the legal issues involved. If you’re planning on having a workforce in the UAE, you must learn about the UAE employment law to have a better knowledge of the several aspects you have to take into account.
Let’s observe the main legal issues you could face with a workforce of freelancers as follows:
4.1 Worker misclassification
It’s important to clearly specify when a worker is a freelancer or an employee. The distinction is highly important since you have to classify them properly otherwise you may incur in liabilities.
Let’s observe the differences between these two as follows:
- Employee: long-term business need, employer controls the working hours but it doesn’t define the scope of the work.
- Freelancer: definable tasks by the employer, short-term working arrangement, the freelancer has total control over their terms.
4.2 Intellectual property
When using a freelancer for a specific project, you need to consider how to protect intellectual property. It’s important to include essential clauses such as non-disclosure or any other that protects your business.
As a business owner, you must learn about copyright law and be very wise on how to include clauses that will protect your rights. However, this may be difficult also since asking a freelancer to sign a non-compete clause could mean that it should be classified as an employee.
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5. Why do you need to worry about misclassification?
Once you know the legal risks involved with the freelance workforce, you realize that misclassification can lead to a monetary issue too. The problem with misclassification is that if you incur in it, you may have to pay back some taxes, depending on what’s stated in the law.
It means that you could be held liable and this can have even worst consequences because your employees can start a class action against your business.
All of this leads to damage to your company’s reputation, and expenses related to labor costs by misclassifications.
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6. What is the social risk of using a freelance model?
Another important risk you may face with your freelance workforce relates to the social aspects. It may be something neglected by business owners but is equally important.
You must ensure your freelancers are motivated so they can give their best performance. Some experts have pointed out that if the freelancer’s job satisfaction relates to the amount of money they’re making.
It means that a freelancer won’t work for you just because they love your company. Unlike a permanent employee, a freelancer doesn’t feel any type of loyalty to the business if he or she doesn’t make enough money.
You should worry about this, since not being satisfied with the job can lead to lack on morale and connection to your business.
Therefore, as a business that its expanding, you should look for employees that are committed to your brand, and creating this kind of relationship with a freelancer it’s difficult. This is because they may work within your industry and thus they may work with your competitors.
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7. What is the perfect choice for a freelance workforce?
Considering all the challenges that come with a freelance workforce you may want to get assistance so you can avoid facing any kind of issue with your workers. There’s a great solution that many businesses don’t know about. We’re talking about EOR services.
An Employer of Record (EOR) can be an excellent resource to get the freelancers that your organization needs. If you still don’t know much about this approach, it’s useful to learn more about this third-party that can help you.
7.1 How does an EOR work?
An Employer Of Record acts as an employer of your employees. Many businesses get confused about this since they believe they will lose operational control but this isn’t the case. Let’s observe how this model works as follows:
- You enter into a separate contract with the Employer Of Record
- The EOR proceeds to outsource the employment of freelancers to a local partner where you are interested in creating a workforce
- The local partner, which is a local office of the Employer Of Record, handles all of the administrative tasks related with the workforce.
Once you decide to partner with an Employer Of Record, you won’t have to worry about liability, compliance risks, high operational costs, and many other challenges. You can contact Connect Resources to receive this marvelous solution.
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8. Why is Connect Resources your best option for a workforce of freelancers?
Here in Connect Resources we want to help you achieve your goals with your freelance workforce. We can be the best link between you and your workers. Our team of specialists is readily available to assist you with each step of your freelancer recruitment process.
If you’re a company that is expanding to new markets and you’d like to get EOR services from a trustworthy agency, you can contact us to receive a solution adapted to your needs. Our purpose is to help you find the workers you need while you focus on your core strategic activities.
Would you like to contact Connect Resources for EOR Services? You can call at +971 433 166 88 or send an email to firstname.lastname@example.org, and you’ll talk to one of their representatives that will gladly answer all of your questions.