More than ever, companies are maximizing the value of a contingent workforce—the engagement of non-permanent workers. Across business functions, the benefits of leveraging freelance meeting professionals are palpable on both sides of the equation: cost containment and the ability to enhance productivity with the flow of business for the corporation, flexibility, and freedom of choice in the hands of the freelancer. As the contingent workforce continues to grow in size and complexity, organizations are increasingly challenged with ensuring they attract and leverage high-quality meeting professionals without introducing compliance risks. Considering these challenges, companies are turning toward the use of a Contingent Workforce Managed Service Provider to oversee and optimize the utilization of freelancers.
Navigating Worker Misclassification
The meeting and event industry has shared in the global uptick in contingent workforce utilization while leveraging Contingent Workforce MSPs to optimize these channels of flexible labor. Meetings agencies and internal corporate event teams are reaping the rewards of the freelance economy. Stakeholders are free to select meetings specialists by specific skill set without adding fully burdened employees to headcount, but this is not without risk. Just this year, SIA announced a Texas based company will pay over $42 million due to worker misclassification. Jessica Looman, the Wage and Hour Administrator of the Department of Labor says, “When employers misclassify employees, we must hold them accountable under the law.” Leveraging an MSP to manage this process lends unquantifiable expertise, but just as importantly helps navigate the potentially hazardous terrain of worker misclassification.
Experienced, industry specific MSPs function to provide clients with the information and arms’ length necessary to properly leverage contingent meeting and event labor. Specifically in the realm of corporate events, freelancers too often run the risk of resembling full-time employees. Not only is it necessary for an outsourced model to bring a track record of industry-specific knowledge, but they must also be able to advise and consult corporations on the game changers of risk: