How Organizations Can Drive Cost Savings While Leveraging The Extended Workforce

The labor market in the U.S. and Europe is in a unique position we haven’t quite seen before. Despite record inflationary pressure, unemployment is close to the lowest levels in modern times.  In these times of economic uncertainty and talent shortages, companies are increasingly looking to contingent labor to increase their agility and fulfil their talent requirements.   

At the same time, it is critical for organizations to save on cost and optimize amid recessionary concerns. Here are three strategies your organization can leverage to drive cost savings while maintaining a resilient workforce:

1. Leverage an Employer of Record Provider

Over the past 30 years, the demand for payrolling services has grown with changing business requirements, globalization of the workforce, and the passage of new regulations. In an increasingly complex regulatory landscape, many organizations have turned to an Employer of Record (EOR) provider to assume the responsibility of payroll, risk, and compliance.

Magnit pioneered and launched the industry’s first professional payrolling service and has since iterated on our services to now provide unparalleled EOR solutions. Backed by the industry’s first on-demand pay offering, organizations can save approximately 20% on every engagement that is filled with a referred worker vs. an agency sourced worker. This is driven in part by Magnit’s pure vendor neutrality, which means that we do not have an affiliation with any staffing company, allowing us to solely focus on payrolling most cost-effectively.

2. Ensure Full Compliance When Engaging the Contingent Workforce

When leveraging the contingent workforce across business operations, organizations must properly classify workers and contractors. Possible fines for failure to properly classify employees can range from fines and assessments to liability for unpaid overtime.. With so much in flux, it is important to consider how your organization will prioritize the classification of its extended workforce. In order to save on costs and mitigate risk, companies should consider partnering with a third-party provider to outsource compliance screening. Magnit’s Employer of Record services not only provide best-in-class payrolling capabilities but also offer white-glove risk and compliance services that help with  IC Contractor Classification and payrolling services when needed. With Magnit EOR, clients can achieve 100% compliance across international regions in addition to 24/7 audit support.  

3. Enhance Your Employee Experience

It is imperative to understand today’s labor market is a candidate’s market, so to help avoid large waves of employee turnover and unrest, many organizations have begun to invest more priority into their employee experience. From the industry’s most comprehensive worker benefits package, which includes superior health and family benefits, we constantly look to optimize what we provide to both workers and clients. Additionally, we offer to customize our solution to fit the requirements of each client, such as paid holidays, paid time off (PTO), paid parental leave, tuition assistance, etc. Workers can easily enter timecards, expenses and attendance in one centralized award-winning VMS available via web or mobile.

Conclusion – Consider Magnit EOR to Drive Cost Savings While Attracting & Retaining Top Talent

As organizations struggle to balance saving money while delivering ROI, more are leveraging a flexible workforce. If your organization plans to incorporate the use of the extended workforce, it is important your company is working with a team that can fit your specific business requirements. Magnit’s Employer of Record solution not only enables clients to drive cost savings but also helps clients achieve compliance and promote an enhanced contractor  experience. Coupled with the industry’s first on-demand pay solution and a best-in-class benefits package, and additional brand marketing, Magnit helps organizations not only attract but retain their high-caliber talent.

If you’re interested in learning more about how Magnit is helping organizations implement winning contingent workforce programs globally, please contact a Magnit representative at info@magnitglobal.com.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.