People working for your company, no matter their status, deserve to be paid on time. Unfortunately, many gig workers and consultants deal with a number of challenges associated with payouts, from late payments to cash flow issues and more.
Understandably, this can be highly frustrating and, in many cases, make it hard for them to pay bills on time or make other important financial decisions. Often, these workers will ultimately end up taking work elsewhere if they find a more reliable and steady source of income.
Now, with more businesses moving to online platforms and outsourcing work to consultants, it's more important than ever for companies to ensure these workers are paid correctly and on time.
The Importance of Payouts for Gig Workers and Consultants
If your company creates financial hardship on your gig workers and contractors, intentionally or not, you're putting your brand at serious risk.
The truth of the matter is these people have alternatives and can go work for a competitor. Just as you can click a link to buy something from another site, they can click a link and become a gig worker at any other service provider (e.g., Lyft vs. Uber).
This means that optimizing payment processes should be high on your list of priorities. This includes having a user-friendly system, ensuring payments are sent out on time, and being mindful of any fees or taxes associated with payouts.
The goal is to create a solid infrastructure so your workers can receive their money quickly and easily, without any unnecessary hurdles in their way.
At the same time, you should provide adequate support for your gig workers and contractors so they understand how the payment process works clearly.
Make sure you explain the details thoroughly, such as when they will get paid, how they will get paid (e.g., direct deposit vs check), and any other relevant information related to payment processing or tax status changes that may affect when they get paid.
The good news is there are now more options like MassPay that make it more straightforward than ever to make payouts reliably and on-time.
This article is meant to serve as a reminder of the importance of payouts for gig workers and consultants for the sake of your business and their financial well-being.
With that goal in mind, let's expand on prioritizing payouts and creating processes to make it easy to pay gig workers and contractors.
The Benefits of Tailored Payouts for Gig Workers
Payouts for your most valuable assets—your people—whether they're gig workers or consultants, should be tailored to fit their individual needs.
Doing so comes with a number of advantages for both you and your workers.
Notably, it lets them better budget their finances, as they know exactly when to expect payments regularly. This also helps build trust in the relationship between you and your employees and allows workers.
We'll explore these and other benefits in more detail next.
1. More flexibility
When you can offer your contracting workers more payment options, they have the freedom to choose what works best for them.
For example, they might receive payments weekly or monthly, or they can request to be paid the same day they complete a job. These capabilities are readily available and provide them with the flexibility they need to manage their finances and keep their cash flow consistent.
2. Better communication
Having an open communication channel with your workers is essential when it comes to payouts.
Further, it's essential to keep them informed about changes in their payment structure or status throughout the entire process - from discussing payment terms before kick-off to alerting them after payments have been sent out.
Keeping your team in the loop helps build trust and mutual respect between you and your contractors. This kind of transparency also allows everyone involved to make well-informed decisions regarding their finances—a point we'll discuss in a moment.
3. Better budgeting
Having a reliable payout schedule in place gives your contractors more control over their financial situation. This allows them to plan ahead and make sure bills are paid on time each month. Plus, it gives them peace of mind knowing money will come in when expected.
4. Brand value and loyalty
Another positive side effect of tailored payouts is improved customer loyalty and brand value. By providing your workers with the certainty they will receive their payments on time, you are helping to build a strong reputation for your company as one that values its employees and pays them fairly.
Remember: people buy, spend, and vote with their money.
They will support brands that stand up for what is right and reward those who have done well by their workers. If given a choice, customers would always choose a company that values its employees over one that does not.
5. Lower fees, more security
When you provide tailored payouts, the costs associated with payment processing tend to be lower.
In addition, since most services now offer a variety of payment methods (e.g., direct deposit, paper check, and wire transfer), you can choose whichever is best suited to your budget and situation. This can help keep costs down as well as eliminate hassle when it comes to issuing payments.
For example, when you turn to a solution like MassPay for global payouts rather than a traditional payment provider, you can expect faster processing, more security, and lower fees–all of which add up to better service for your contractors.
In addition, payouts for gig workers and consultants often come with the benefit of added security compared to other payment methods.
Digital transfers are much safer than sending cash or paper checks and minimize the risk of fraud. This helps keep both you and your contractors safe from potential losses due to theft or deception.
Keep Up with the Growing Gig Economy
As the gig economy continues to grow, payouts for gig workers and consultants will become even more critical.
To emphasize the size and scope of the gig economy, consider this:
As Business Research Insights outlines, in 2021, the size of the global gig economy market was USD 355 billion.
According to their research, this number is expected to more than double and reach 873 billion by 2028.
With that in mind, it's more important than ever to ensure that you have a reliable payout system in place for your gig workers and consultants so they can get paid on time, with fewer fees and greater security.
Again, this helps foster loyalty among these individuals, ultimately benefiting your business.
Reliable Global Payouts for Gig Workers with MassPay
By investing in a reliable global payout system like the one MassPay offers, your business can keep up with the ever-changing landscape of the gig economy and continue to thrive.
With MassPay's Global Payout Orchestration Platform, you'll be confident your contractors are taken care of no matter where in the world they live.
With various payment methods available, including a vast selection of currencies and payout methods, you can tailor payouts to meet each individual's needs so everyone involved is satisfied with their experience.
MassPay helps your business navigate the global gig economy and ensure your contractors are paid quickly, securely, and reliably – every single time.
Don't delay – schedule your demo today to see MassPay in action!