Forrester conducted a study to discover the cost savings and business benefits of Workforce.com. Results of the study show that a composite organization in the food and retail sector has seen labor savings, achieved efficiency gains for managers, and reduced compliance risk.
Key Findings
A 450% ROI
According to the study, Workforce.com has a 450% return on investment (ROI) and the following three-year, risk-adjusted present value (PV) qualified benefits. Some highlights include:
Improved labor efficiency by 5% and Increased revenue per labor hour by 5.26%
One of the organizations interviewed for the study shared that they improved labor efficiency by 11% just by focusing on optimizing labor hours per store. Over three years, the composite organization saved $5.3 in labor costs.
Workforce.com makes it easier for managers to forecast demand and create optimized schedules based on past sales data, shift trends, hourly rates, and staff qualifications.
“It was easy to justify this investment because labor is one of the biggest costs to our business, so it’s not only critical, it’s just smart to have a system that gives us oversight and is designed to manage labor costs.” Country Manager, QSR
80% Less Time Spent on Scheduling
Managers are also saving 4.2 hours per week per store on scheduling and other related tasks, leading to $1.6 million in labor savings over three years.
By automating scheduling, Workforce.com reduces the time spent creating shifts, forecasting demand, and handling admin tasks like shift swaps, onboarding, and compliance tracking.
“Now we don’t need to rely on muscle memory and gut feelings. We only need to use the system to see the forecast to make sure that the efficiency assumptions are in place. That’s it. Everyone can make a schedule.” Vice President of Customers, QSR
$920K in Compliance Risk Reduction
Workforce.com’s compliance engine helps businesses stay on top of labor laws and ensures accurate pay, potentially avoiding $920,000 in fines, penalties, and legal costs.
$991K in Payroll and Accounting Savings
With more accurate timesheets, automated workflows, and better visibility, payroll and accounting teams spend less time on manual work and compliance checks—leading to nearly $1 million in savings.
Key challenges identified among organizations
Forrester’s study highlighted common challenges that pushed decision-makers to seek a more efficient workforce management platform. Here’s what they struggled with before making the switch:
Keeping up with labor laws and agreements – With labor regulations constantly changing, businesses needed better oversight of payroll practices and compliance.
Lack of visibility across stores and managers – Without a centralized system, companies had little insight into store operations, making it harder to ensure compliance, track performance, and identify training needs.
Rising labor costs – Companies needed a smarter way to control labor expenses and optimize costs.
“We use Workforce.com because the most critical part of creating a schedule is projecting in detail what you think is going to happen every day, then using that information to tell us when people need to start. Labor in this country is very expensive, so 15 wasted minutes adds up to a lot of money.” Country Manager, QSR Organization
Shifting customer demands – Businesses needed a scheduling platform that could handle fluctuating demand across multiple channels. The COVID-19 pandemic made this even more urgent, forcing companies to adapt to changing customer behaviors, including balancing in-store and delivery operations.
Background
Forrester conducted this study on behalf of Workforce.com to evaluate its return on investment (ROI). Researchers interviewed decision-makers from organizations that had implemented Workforce.com. Their insights were combined into a single composite organization—a global food and retail company with 250 store locations, 5,300 employees (including one manager per store), and $312 million in annual revenue.
Before switching to Workforce.com, these businesses relied on a mix of legacy systems and platforms. However, many managers still fell back on manual processes for scheduling, managing shift swaps, and onboarding new hires. As a result, they struggled with:
Forecasting staffing needs
Controlling labor costs
Managing schedules efficiently
Staying compliant with labor laws and payroll regulations
Want to see the full breakdown of Forrester’s findings? Download the report here.
It’s typical for small businesses to consider using HRIS to help manage their employees, but choosing an HRIS software takes an average of 15 weeks.
HRIS, HRMS, and HCM are all HR-related systems that are similar but are distinct in their focus. Small businesses must know the difference between these systems to make a sound decision.
Workforce.com helps small businesses beyond their HRIS requirements, offering an all-in-one solution for managing HR processes from onboarding, tracking time and attendance, payroll, performance management, and labor analytics.
Running a small business is challenging enough without getting bogged down by HR paperwork and tedious admin tasks. As your team grows, managing payroll, employee records, and compliance can quickly become overwhelming and eat into valuable time. There’s also an increased risk of errors, which could lead to compliance issues. Enter HRIS—Human Resources Information System.
HRIS is a tool for taking the grind out of HR. It centralizes employee records, automates payroll, and ensures compliance with labor laws. It helps small businesses tackle the administrative side of human resources, which gives them back precious hours for employers to focus on growing their business.
In this guide, we’ll break down exactly what an HRIS is and what to look for when choosing the perfect system for your team.
What is HRIS?
These days, HRISs come in all shapes and sizes, each with its own set of features and complexity. But at the heart of it, they all help with core HR tasks such as time tracking, payroll, benefits management, and workflow creation. Plus, they store all critical employee information, from personal details to compensation data. In the past, HRIS was usually run on a company’s servers, but now cloud-based platforms are the go-to. And for good reason—they’re much more efficient, letting you access anytime, from virtually any device.
Why is an HRIS platform important for small businesses?
Because it saves time, which means small business owners can work smarter, not harder.
Running a small business is all about staying focused on what keeps the wheels turning and being ready to seize opportunities when they come. That’s how small businesses grow. But when you’re stuck with admin tasks, it’s easy to lose sight of the bigger picture and miss out on opportunities to move your business forward.
This is where HRIS can be helpful. It can simplify and automate time-consuming HR tasks, and with the right system, you can take your hands off things like:
Managing employee profiles
Storing crucial employee data for classification, compliance, and payroll
Monitoring PTOs and leave balances
Viewing and approving timesheets
Processing payroll and sending out pay stubs
Letting employees view and update their own information
Imagine all those processes running smoothly in the background. The time you’d save could be redirected to strategic planning and business growth.
HRIS vs. HRMS vs. HCM
If you’re exploring HR software, you’ve likely come across HRIS, HRMS (Human Resource Management System), and HCM (Human Capital Management). But what’s the difference?
While they are often mixed up, and there are overlaps in their functions, they have distinct focuses.
HRIS focuses on core administrative HR tasks, such as managing employee data, processing payroll, tracking time and attendance, and ensuring compliance with regulations. Its primary purpose is to centralize and automate HR processes, reducing paperwork and manual effort. HRIS streamlines day-to-day operations and handles basic HR functions.
HRMSincludes all the functionalities of an HRIS but goes a step further by adding talent management tools, which includes tools that help with performance reviews. This means it not only manages employee records and payroll but also supports the recruitment process, helps with onboarding new hires, and tracks employee performance and development. In other words, HRMS brings a more strategic HR approach and goes beyond the administrative aspects.
HCMencompasses both HRIS and HRMS functions but expands to cover the entire employee lifecycle. It’s not just about managing data and processes—it’s about optimizing the workforce as a critical business asset. HCM systems help with workforce planning, succession planning, compensation analysis, and labor compliance with local and international labor laws. They also have tools to improve employee engagement and satisfaction. This makes HCM ideal for rapidly scaling businesses looking to align HR functions with broader business goals.
How to choose the best HR system for a small business?
Selecting an HRIS can take 15 weeks on average, according to a study. But if you’re looking to streamline your HR now, that can be a long time. Since every business has different needs, there’s no one-size-fits-all software solution. To speed up the decision-making process, here are some key factors to focus on to help you find the best fit:
HR needs
Start by identifying what you need from HRIS, or any HR platform for that matter. Figure out your pain points. What’s slowing you down? Are you buried in paperwork or struggling with employee data management? In that case, a basic HRIS can do the trick. Need help with more strategic tasks with succession planning? Then, an HCM system might be a better fit.
Go deeper. Take a look at the types of employees you hire. Is your team composed of more hourly people, or is most of your workforce salaried? How often do you need to onboard or hire workers? Do you hire seasonal staff? The more specific you get about your needs, the easier it will be to choose a system that checks all the boxes.
Budget and ROI
Determine your budget upfront. How much are you willing to invest, and how much flexibility do you have for extra features that might increase costs? Think about the expected return on investment (ROI). Will this system save you enough time and resources to justify the price?
You must also aim to go for a vendor that has the most transparent pricing. Inquire about what’s included in their packages and be sure to asks if there are additional charges and when those will apply.
Ease of use
A feature-packed system won’t help if it’s too complicated to use. If your team can’t get the hang of it, you might as well stick to manual processes. Look for a system that’s intuitive and with a smooth learning curve, especially if you want to hit the ground running as soon as possible.
Consider employee self-service functionality too. A huge part of HRIS is employee data. And aside from your HR team, your employees are also responsible in part for their data. Having a self-service portal feature lets your employees view and update their information, and that could be a key consideration when looking at different HRIS solutions.
Integration
If you have existing systems, ensure your new HR system integrates smoothly. How quickly can the systems sync? What will the workflow look like? If integration is clunky or non-existent, that defeats the purpose of streamlining, so it’s worth moving on to a different option.
Implementation and support
You can only realize ROI with your HRIS once it is completely implemented. So, when shopping around for software and going through demo sessions, always ask vendors how long it will take to get up and running based on your specific needs.
The level of customer support during the early stages of implementation is also crucial. Will they guide you through the setup process and be available for ongoing help? Choose a provider that won’t abandon you once the contract is signed.
Scalability
If your business rapidly grows, can the software stay pace? It should be able to scale as quickly as you will. Otherwise, the system could become obsolete and incompatible with your requirements. Considering the cost of a new system and the learning curve involved in implementing it, it won’t be cost-effective in the long run. When you choose software, ensure it can handle future growth, and can be customizable enough when you need additional hr tools or modules.
Reputation
Check out a vendor’s track record and client base. Look at their customer stories, case studies, and online reviews. That can help you understand how their product works in different business scenarios and the problems they were able to solve for their clients. This will give you insight into their reliability and whether they’re the right fit for your business.
Why Workforce.com is the best HR software for small businesses with hourly teams
Workforce.com isn’t just another HR platform—it’s built for businesses that rely on hourly workers. Whether in retail, hospitality, healthcare, or any sector with hourly workers, Workforce.com covers your HR needs, workforce management requirements, and delivers much more. Here’s why it’s the best choice.
It simplifies HR administration and payroll.
Workforce.com does the heavy lifting that comes with the administrative aspects of HR, from recruitment, onboarding, time and attendance tracking, benefits administration, and payroll processing.
Fill vacant roles easily with Workforce.com’s applicant tracking system. Speed up the hiring process by generating QR codes for job postings and allowing applicants to submit their personal details and answer role-specific questions. This helps identify qualified, saving you time on unnecessary interviews.
No more drowning in paperwork during employee onboarding. Workforce.com collects crucial employee details like tax forms, insurance information, bank details, and other personal employee information, saving time and reducing manual data entry. You can focus on welcoming and integrating new hires into the organization instead of processing forms.
Time and attendance tracking is also automated. Employees can clock in and out seamlessly, ensuring accurate hours and smooth payroll runs. You can review and approve timesheets online, quickly correcting any issues so payroll stays on track.
With all this data in one place, payroll processing becomes faster and more efficient. Overtime, time off, employee benefits, and other pay rules automatically apply, ensuring you always comply with labor regulations. Workforce.com’s payroll system also helps with withholding taxes and tax filing, saving you a massive amount of time and lets you shift your focus to growing your business.
It streamlines employee scheduling.
Workforce.com is built with a robust scheduling platform that lets you create and assign shifts in minutes. It has scheduling templates that you can copy and paste from one week to next, especially for shifts that remain the same over a period of time. Its built-in labor forecasting feature allows you to schedule shifts based on projected demand to confidently avoid being over or understaffed.
For businesses governed by predictive scheduling laws, Workforce.com helps you stay compliant by enabling faster scheduling and allowing you to send work schedules to employees well in advance. This keeps your team and regulators satisfied while providing employees with more flexibility and boosting their job satisfaction.
Workforce.com doesn’t just handle administrative tasks; it’s designed to help you retain your best workers. It includes tools for communication, feedback, and performance management to keep employees engaged and motivated.
Managers and employees can communicate directly within the platform, cutting down on confusion. Employees can also rate their shifts, giving you insights into what’s working and what needs improvement. This allows you to make real-time adjustments before minor issues become big problems.
It also has features that allow you to track action plans for employees who need to improve in certain areas and quickly show recognition for staff who are performing well.
It scales with you.
Whether growing locally or expanding across state lines, Workforce.com scales with you. It manages everything from hiring to compliance, no matter the size of your business.
As you expand, the platform ensures you stay compliant with different labor laws across regions, so you won’t have to worry about legal complications.
On top of that, Workforce.com provides valuable insights into your business operations, helping you track labor costs, absenteeism, and other vital metrics. This allows you to spot patterns and fix potential issues before they impact your business.
It’s easy to use.
Workforce.com has a user-friendly interface, which means that your team can learn the ropes of the platform in no time. It also has a mobile app that employees can download on their devices, letting them view their schedules, receive notifications from their team, apply for leaves, and update their information.
It has a proven track record.
Amenity Collective, one of Workforce.com’s clients, have seen a reduction in administrative work by 85%. They are just one of the many organizations that switched to Workforce.com and experienced great results. Don’t just take our word for it—explore their testimonials and stories firsthand.
Even better, book a demo today to see Workforce.com in action and discover how Workforce.com can drive growth and success for your business.
Employee Self-Service (ESS) systems can relieve some of management’s administrative burden and give employees access and control over their HR and payroll details.
Not all ESS systems are created equal. Businesses need an intuitive and fully integrated system to get the most value.
Running a business is a constant balance between strategic planning and day-to-day admin tasks. Big-picture planning fuels growth, while essential administrative duties keep operations running smoothly. However, maintaining this balance is easier said than done.
Admin work can take up a lot of time, and managers and business owners can quickly find themselves buried in paperwork instead of being on the ground, supporting their teams, and creating employee engagement initiatives. To ease this burden, many turn to employee self-service systems. But how do these systems actually function?
Workforce.com has employee self-service (ESS) features, from onboarding to payroll. Let’s break down how they work and how they can save business owners a ton of time.
Getting it right from onboarding
HR tasks involve a lot of paperwork, but managers don’t have to handle it all. Employees can take charge of some of this administrative work and have more autonomy over their personal details.
Workforce.com’s onboarding system makes it easy for new hires to get set up. Within minutes, new hires can submit their personal and contact information, bank details, I-9s, and W-4s without physical paper forms. This not only speeds up the process but also eliminates double data entry, reduces mistakes, and ensures accurate pay.
Managers can also streamline processes by uploading key documents, such as company handbooks, role-specific materials, or a list of faqs, to ensure that every employee has exactly what they need from day one.
“One of the exciting features that I’ve really enjoyed with the Workforce.com platform is the HR onboarding portion because they have a feature that allows me to upload documents. So, for instance, I can upload a document that says ‘front of the house server benefits’ for our bakers. I can have a different set of benefits and upload that document in a PDF form where they can open up their cell phones and see it right there. And that’s been a really good thing, as well as the policy manual. It makes it available to everybody,” shares Shelly Archer, Human Resources Manager at Shipley Do-nuts.
Faster updating of employee information
Workforce.com’s HR software, employees can quickly update their details whenever a life event requires it, such as a move, a name change, or a new bank account. Instead of going through HR or filling out paperwork, they can simply update their information directly through their profile in the company’s HRIS.
Easier management of timesheets and PTO
Accurate employee clock-ins and outs are the backbone of accurate payroll processing, but things can get tricky when employees forget to log their hours or when clunky systems fail to track time properly.
Workforce.com’s time and attendance system tracks employee time accurately. Employees can clock in and out through a shared tablet at work or on their mobile device. No matter where they are, whether on-site or remote, their hours and breaks are recorded correctly.
Employees can also review and correct their time logs should there be any mistakes or discrepancies. Instead of constantly chasing down timesheet corrections, managers can focus on more important things.
“One of the features I was most excited about with Workforce.com is the employee’s ability to edit their own time punches. If they did forget to clock in, they can submit it. Of course, it still gets reviewed. At the end of the day, it’s just one less step,” says Bobby Archer, General Manager at Shipley Do-nuts.
Beyond tracking hours, employees also get complete visibility over their leave balances. They can plan ahead, submit time off requests, and ensure that nothing falls through the cracks, like a PTO request form that gets buried in email or miscommunication due to having multiple channels.
“We wanted our employees to be able to see how many PTO days they have. We also want them to be able to see their clock-in and clock-out times. So that way they can know and plan personally on their end how to pay their bills and what to expect,” Shelley shared when she talked about their goal of giving their employees the ability to view their information and how Workforce.com helped them provide a way to do that.
Employees shouldn’t jump through hoops to access their payroll information. With Workforce.com’s payroll software, they can easily access their pay stubs, tax documents, direct deposit information, benefits details, and complete payroll history.
There’s no need to wait for HR or finance to pull reports. Employees can generate and view their own payroll info anytime, all in one place. This means fewer email requests, less back-and-forth, and a faster, more seamless way for staff to get the details they need whenever they need them.
An all-in-one solution makes things easier
Employee self-service is a feature that’s great to have, but what makes a huge difference is having a single solution where all things that can make or break payroll are in a single, integrated platform.
Juggling separate systems for time tracking, scheduling, HR and payroll is time consuming, puts you at risk of potential errors, and can disrupt workflows. When data is scattered across multiple platforms, every step takes longer and the risk of mistakes only increases. A single, connected solution simplifies the process.
“Prior to Workforce.com, we were using four different platforms. We had an online service that would send out the new hire paperwork and I would have to process it manually. We had a clock-in and clock-out system that was web-based. We had another scheduling system that was also web-based. As far as the payroll processing, we had an actual person with whom I would send our payroll through another system. Integrating all of those together has saved so much time. It takes me 95% less time doing what I’m doing now with Workforce.com.” Shelley further explained.
Tips for Implementing an Efficient Employee Self-Service Software
Implementing an ESS portal or system is beneficial both for employees and employers. Aside from taking some of the admin load away from managers and HR teams, it also enhances the employee experience.
To make ESS systems truly effective, here are a few tips:
Keep it all in one place
Employee self-service is meant to streamline processes, but using multiple platforms defeats the purpose. Choose an integrated system so employees don’t need to juggle different apps or logins.
Prioritize ease of use
The best ESS system is not the one with the most bells and whistles. It’s one that’s easy for staff to use. Make sure that your ESS is intuitive and minimize the learning curve as much as possible.
Employees should be able to view and update their personal data, emergency contacts, tax withholdings, and other HR information without hitches.
Keep it mobile
These days, mobile access is no longer optional. A mobile-friendly ESS or dedicated mobile app allows staff to handle work info on the go, whether checking pay stubs, submitting time-off requests, or updating personal details. It’s all about making things as convenient as possible and allowing them to do these tasks without waiting until they’re at a computer.
Gather feedbackRegularly check in with staff and get feedback about what they think of the platform. Identify areas that work well for them and determine which parts need improvement. Their input helps refine the system and ensure it stays as efficient and user-friendly as possible. Be ready to adjust to make the most out of the system.
Make the switch to Workforce.com
Switching to a new system can feel like a big leap, especially when you’re used to current platforms. However, making the move could be one of the best decisions for your business, especially if you want to lessen the administrative burden for your team.
“It would be in a company’s best interest to switch over sooner rather than later because you would be wasting a tremendous amount of time. Workforce.com helped us improve our efficiency,” Shelley said.
Discover how Workforce.com helped Shipley Do-nuts and numerous other businesses across the globe. Book a call today.
California has strict pay transparency laws that require employers to include pay ranges in job postings. Current employees also have the right to request pay scale information at any time.
While these laws promote fairness and build trust, they can also create challenges, particularly with recordkeeping and other administrative tasks.
HR and payroll software can simplify compliance and help businesses stay organized.
Pay transparency is a strategy to attract talent and retain current staff. In California, pay transparency is backed by a series of regulations, one of the most recent being Senate Bill 1162.
With the bill’s enactment, employers in California must be upfront about pay scales and clearly communicate them to candidates and current employees. While the bill intends to promote transparency, retention, and engagement, putting it into practice isn’t always straightforward, especially for employers who handle various job positions, locations, and levels of expertise.
So, what does the bill require, and how can hourly workforces implement these rules? Let’s take a closer look.
What is California Senate Bill 1162?
California SB 1162 is legislation that aims to promote transparency in pay scale disclosure. It requires employers to reveal pay ranges in job postings, submit pay data reports, and take steps to uphold pay transparency in the state. It went into effect on January 1, 2023.
Essentially, this bill encompasses transparency with job listings, current employees’ right to know, and recordkeeping and applies to California employers with 15 or more employees. Here are some fundamental points that the bill entails:
Employers must disclose the pay range for a position in any job listing. If you employ a third-party recruitment agency, they should also include pay information in their job descriptions and job posts.
Should current employees request it, employers must provide the pay scale of their position.
Employers must keep records of each employee’s job title and wage history for the duration of the employee’s employment and three years after the end of employment. This information must always be ready for inspection by the Labor Commissioner’s Office.
If an employee files a complaint and pay records are not available, it could be a point against the employer in court.
Failure to comply can result in investigations by the Labor Commissioner. If violations are proven, penalties can be imposed.
If someone is “harmed” based on this legislation, meaning they didn’t get any pay information as stated in the law, they can sue the company or seek legal remedies by taking them to court.
SB 1162 basically makes pay information more transparent and accessible, helps employees understand how much they can earn, and ensures that companies have the pay records and information to justify their pay decisions.
Other California Laws on Pay Transparency
California is known for having some of the most comprehensive employment laws, such as overtime pay and cell phone usage laws. The state takes the same thorough approach to pay transparency and disclosure requirements. Aside from SB 1162, here are other relevant state laws.
Pay Data Reporting
Under Senate Bill 973, private employers with 100 or more employees must submit an annual report on pay data to the California Civil Rights Department. SB 1162 expanded this and included rules on pay scale transparency and record keeping. The annual pay data report must cover pay information by race, ethnicity, and gender with specific job categories and is due every second Wednesday of May.
Salary History Ban
Aside from pay transparency and reporting, California Assembly Bill 168 also prohibits employers from asking about an applicant’s salary history or using their past pay information to make a salary offer. Employers, however, can ask applicants for their expected salary.
Wage Theft Protection Act
This act requires employers to provide a notice that contains specific information once they hire an employee. It should include:
Rate or rates of pay and if it’s paid by the hour, shift, day, week, salary, piece, or commission.
Overtime rate
Applicable allowances that count toward minimum wage, such as for meals or lodging
Regular payday
Employer details such as name and other names they do business under, physical and mailing address, telephone number
Contact details of employer’s worker’s compensation insurance carrier
Any other necessary information deemed by the Labor Commissioner
Should the said notice change, employees must be notified in writing within seven calendar days unless the changes are reflected on the next pay stub or another legal notice with the updated details is issued within seven days.
Whistleblower Protection and Anti-Retaliation Law
California offers another layer of protection for employees who report disparities in pay information. Under this law, an employer cannot retaliate against an employee who discloses information to law enforcement, an investigative body, or someone with authority to address the issue about a law violation, a regulation not being followed, or unsafe working conditions.
Employees are also protected if they refuse to participate in activities they believe would break the law. Even if an employee hasn’t reported anything but the employer suspects they did, that employee is still protected under whistleblower laws.
If an employer retaliates against a whistleblower, they may be required to reinstate the employee’s employment and work benefits, pay lost wages and civil penalties, and take other actions to comply with the law.
The Impact of Pay Transparency Laws on Hourly Teams
Pay transparency laws can pose both advantages and challenges for hourly workforces. Such legislation helps enhance the employee experience, promote retention, and build trust. However, it can also come with administrative challenges, especially with recordkeeping and managing pay scales for each role.
Benefits
Greater wage transparency
Employees value transparency, especially with pay ranges and information. Pay transparency laws promote fairness and avoid any wage disparities. Such regulations also open the floor for better wage discussions, which can lead to higher morale and increased job satisfaction.
Improved hiring and retentionIncluding pay ranges in job listings helps attract job seekers who are not only interested in the role but also comfortable with the offered compensation. This speeds up the hiring process by filtering out those with mismatched salary expectations. It also helps with retention because when employees know the pay range upfront, they’re less likely to feel blindsided or dissatisfied later on.
Challenges
Consistency with pay scales
Staying on top of pay ranges can quickly become complicated when wages vary by location or experience level.
For example, the cost of living across cities can impact salary ranges. Typically, pay rates are higher in cities like San Francisco due to the higher cost of living compared to smaller towns, making it challenging to balance out pay ranges across multiple locations.
Roles can also differ significantly, even if they share the same title. The same position might carry different responsibilities depending on the team or location. Additionally, ensuring pay equity between new hires and existing employees can be tricky.
With all of these factors in play, employers must carefully document pay ranges, justify their pay decisions, and comply with pay transparency regulations.
Wage increases and bigger budget allocations
Employers may have to allocate bigger wage budgets to maintain pay equity. Pay transparency laws may also prompt current employees to request wage adjustments if they find that their current pay is on the lower end of the scale.
Recordkeeping
Complying with pay transparency laws involves meticulous recordkeeping. This can be especially true for big workforces that need to keep detailed records of all job titles and wage histories of employees across multiple locations.
Employees’ preferences for specific shifts
For employers offering shift differential pay, transparency can influence employee preferences. Once pay differences are made clear, less popular shifts might become more desirable, leading to imbalances in shift coverage. Employers may need to rethink their differential pay strategies to ensure all shifts are adequately staffed.
How to Avoid Non-Compliance with Pay Transparency Laws
California’s pay transparency laws come with a lot of fine print, and it’s easy to unintentionally slip into non-compliance. To help you navigate these regulations, here are practical strategies to keep you on the right track:
Implement smart recruitment practices
Never forget to include pay ranges and other components of employee compensation on your job listings. This level of transparency not only keeps you compliant but also helps you attract job applicants who are comfortable with the pay offered, speeding up the hiring process.
Workforce.com’s applicant tracking system simplifies this by allowing you to use in-store QR codes to attract local talent. When candidates scan the code, they can instantly view the job opening and pay range. You can even add a follow-up question to confirm that they’re aware of the compensation package before proceeding with the application.
Optimize recordkeeping for audits
Managing multiple pay rates is complex, and manual processes can quickly lead to errors and compliance issues. Automating recordkeeping is vital to staying organized and compliant. With the right system, you can easily store, retrieve, and sort pay data. No need to scramble to gather information during audits or employee requests.
An automated solution keeps all pay info in one place, making it simple to pull up details anytime. If the Labor Commissioner knocks or an employee asks for their records, you’ll be ready.
Workforce.com makes it easy to keep employee records and pay data organized. Staff can access their information, and management can quickly pull reports for audits or compliance checks.
Keep employees informed of any pay-related information
Pay transparency isn’t just about disclosing wage ranges—it’s about keeping employees consistently informed. In addition to providing access to their wage details, make sure to issue regular pay stubs. Automating this process reduces administrative work and ensures compliance.
Pay stubs should clearly outline their wage rates, earnings, overtime, deductions, and withholdings. Workforce.com’s payroll software automatically generates detailed pay stubs each payday, giving employees easy access to their payment breakdowns and salary information.
Define pay criteria for pay variations
You need to keep a record of pay data and justify assigning pay ranges to a particular role. Establish a clear policy that defines your pay scale criteria, such as experience, location, shift differentials, and team assignments. Communicate these criteria to employees so they understand how pay ranges are determined.
Provide training and support to HR and managers
Pay discussions can be sensitive, and managers must know how to handle them appropriately. Provide training and guidance on how to effectively address pay scale inquiries and manage pay adjustment requests. Equip them with the information and talking points that will allow them to explain company decisions clearly.
Simplify compliance with Workforce.com
Complying with pay transparency involves handling data and keeping its integrity intact. Workforce.com is an end-to-end HR, payroll, and scheduling system designed for the needs of hourly teams, including labor compliance. It helps eliminate the administrative burden that can come with complying with intricate laws such as California’s pay transparency laws. It has one source of information, which means that the chances of errors or things falling through the cracks are minimized.
Discover how different businesses stay on top of labor laws while keeping their teams efficient with Workforce.com. Book a call today.
California has some of the most comprehensive employment laws in the country, including overtime rules.
Compliance can be tricky because there are many nuances and rules that employers need to understand and implement.
Payroll software can ensure that workers entitled to overtime compensation in California are paid correctly and simplify compliance for employers.
California has some of the strictest overtime laws in the country, ensuring that employees are paid fairly for the extra hours they work. However, due to these strict rules and recent court decisions, many employers struggle to get it right, which can lead to costly lawsuits and hefty fines.
If you’re running a business in California, understanding overtime rules and staying updated with the regulations is crucial to staying compliant and paying your workers correctly. This guide will explain who qualifies for overtime, how it’s calculated, and best payroll practices to get it right.
Knowing the difference between California’s overtime rules and federal overtime laws
Under the Fair Labor Standards Act (FLSA), non-exempt employees earn overtime pay if they work more than 40 hours in a workweek at a rate no less than one and a half times their hourly rate. This is also known as time and a half pay.
Sounds simple, right? Well, California has its own rules. According to the California Division of Labor Standards Enforcement (DLSE), overtime applies when an employee works more than 8 hours in a single workday or over 40 hours in a single workweek. Additionally, for especially long shifts, California law requires double-time pay, a rule that goes beyond federal law.
When federal and state laws differ, the more beneficial rule to the employee prevails.Here’s a brief breakdown of how federal and California overtime rules differ:
Rule
FLSA Law
California Law
When overtime pay takes effect
Over 40 hours a week
Over 8 hours in a workday or 40 hours in a workweek
Overtime pay rate
1.5x of regular rate after 40 hours
1.5x after 8 hours a day 2x after 12 hours a day
Seventh consecutive day
NA
1.5x for first 8 hours 2x after 8 hours
Double time
NA
2x regular rate after 12 hours a day or after 8 hours on 7th consecutive workday
Key areas of CA overtime rules that employers must know
California’s overtime laws are strict, and understanding them is essential for staying compliant and ensuring employees are paid correctly. Below are some of the most important areas employers should know when handling overtime pay.
Regular rate of pay
Understanding an employee’s regular rate of pay is at the core of calculating overtime pay in California. So, what is it exactly?
The regular rate of pay refers to compensation for the work done, and it goes beyond a worker’s hourly wages. It could also include commissions, piecework earnings, and salary. The regular pay rate should never be lower than the applicable minimum wage.
It’s important to note that bonuses may or may not be included when computing the regular rate of pay. If it’s a nondiscretionary bonus or bonuses tied to work performance or output, it’s typically included in the computation of the regular rate of pay. Discretionary bonuses, meanwhile, are not included since they are bonuses or rewards that are not usually incentives that are discussed before work commences or are given during special occasions.
Alternative workweek schedules and multiple pay rates
What if your employees don’t work the standard 8-hour workday, 40-hour workweek? If your employees work on an alternative schedule, like 10 hours a day for 4 days or 12 hours a day for 3 days, the computation for weekly overtime will still apply once you hit the 40-hour mark for the workweek.
Meanwhile, if an employee has two or more pay rates, the overtime computation will be based on a weighted average based on their total earnings for the workweek.
Commissions and piecework payments
California employees earning commission or piece-rate pay have two ways to calculate their regular rate of pay for overtime. First, they can use the commission as the regular rate of pay and calculate overtime by one and one half times (1.5x) that rate for hours exceeding 8 hours in a day or two times(2x) for any hours beyond 12 in a single day.
Meanwhile, another way to calculate is to get a regular hourly rate from all the earnings. You do that by adding up all earnings for the week (including commissions and overtime pay) and dividing it by the total number of hours worked (including overtime hours). For each overtime hour, an employee gets an extra .5 pay for hours over 8in a day or 40 in a week or an extra 1x pay for hours over 12 in a day.
If a team works together on a piece-based pay, the total number of pieces made is divided among the workers. The regular rate is calculated by dividing their earnings by their work hours. The regular rate cannot be less than the minimum wage.
Unauthorized employee overtime
What employees work overtime and it’s not authorized? Employers still need to pay up. Workers are entitled to overtime pay if they “suffered or permitted to work, whether or not required to do so, ” meaning that it is work that the employer knew or should have known about.
In such cases, employers can discipline their workers if they incur unauthorized overtime, but workers must still be paid.
Collective bargaining agreements
According to California’s Labor Code, allows some exemptions from state overtime rules if a valid collective bargaining agreement meets specific conditions such as a clear outline of overtime rates and rules, a regular hourly wage that is at least 30% more than the state minimum wage, and providions for wages, hours, and working conditions.
CBAs in construction, hospitality, motion picture and TV production, healthcare can often modify overtime rules.
Who’s entitled to overtime pay in California?
Most hourly employees qualify for overtime. Salaried employees may also be eligible if their job duties don’t meet exemption requirements. Typically, executives, administrative professionals, and some high-level salaried employees are exempt, but employers must ensure they meet the strict exemption criteria.
When should employees receive overtime pay?
Overtime must be paid by the next regular payday, but not later. Regular wages for hours worked must be paid on time according to the usual pay period. Only overtime can be deferred to the next regular pay period.
The cost of noncompliance to California overtime rules
Non-compliance to California overtime laws can set your business back big time. It can result in repayment of unpaid wages, penalties, massive settlements, and expensive lawsuits.
Take the case of AOCLSC. While the company didn’t admit to the allegations, it settled a $920,000 lawsuit filed for allegedly failing to pay the correct hourly, minimum, and overtime wages under California law. The complaint also included failure to provide meal breaks, rest periods, and accurate wage statements.
As a result of the settlement, non-exempt employees who worked for the company in California between May 8, 2019 and May 15, 2023. The same goes for the Private Attorneys General Act class of AOCLSC employees who worked between June 1, 2021, and May 15, 2023.
Then there’s Alvarado v. Dart Container Corporation of California, which underscores just how precise overtime calculations must be. It centered around how the regular rate of pay for overtime calculations was computed, especially with a flat-sum bonus involved. In this lawsuit, the plaintiff received a $15-dollar bonus for working the weekend, and the court ruled that the bonus should be included in calculating the regular rate of pay.
Again, this further reiterates that employers should carefully examine all the remunerations an employee receives because even seemingly minor bonuses can impact payroll calculations.
The takeaway? Getting overtime laws wrong, even unintentionally, can lead to financial consequences and wage claims. California’s wage and hour laws have comprehensive rules and protections to ensure employee are paid fairly. However, they can be complex, and employers must correctly calculate regular pay rates, bonuses, and overtime wages to avoid costly mistakes.
Payroll best practices for complying with CA overtime rules
California overtime laws can be complicated, nuanced, and constantly evolving, with court rulings shaping how they’re applied. But with the right payroll practices, California employers can stay compliant, avoid mistakes, and pay employees accurately.
Classify employees correctly from the start
Misclassifying employees is one of the biggest (and most expensive) mistakes employers make. Get employee classifications correct upon onboarding. If you get this right from day one, you’ll properly calculate accurate wages, pay proper overtime, and comply with the rules. However, that can be easier said than done, and you should double-check whether a worker’s duties meet the overtime pay criteria.
Many assume salaried employees are automatically exempt from overtime, but that’s not always true. Some salaried workers still qualify for overtime, depending on their job duties and earnings. Always double-check the latest state and federal rules to properly classify employees.
Track employee time accurately
Overtime calculations are only as good as your timekeeping system. Wage and overtime calculations will depend on employee time logs. You should have a system that accurately records total hours of work, break and rest times, and hours of overtime, not just for accurate pay computations but also for proper recordkeeping.
If you ever face an audit or a wage dispute, having clear, reliable time records can protect your business and prove compliance. Invest in a digital time-tracking system that makes it easy to maintain accurate records and minimize errors.
Calculate the regular rate of pay correctly
A miscalculated regular rate of pay can easily land you in legal hot water and result in unpaid wages. Overtime pay is based on this rate, so it must include all eligible earnings like commissions, piecework, and nondiscretionary bonuses. Get this wrong, and you risk underpaying employees, leading to potential lawsuits and penalties.
Automate compliance at critical steps
Compliance mistakes often happen when things slip through the cracks. Automation can safeguard your team from committing unintentional violations. Implement a system that alerts you when you’re about to hit unplanned overtime, an employee missed a meal or rest period, there are discrepancies in time logs, or when you’re creating schedules that can create unnecessary overtime.
Optimize schedules to minimize overtime
Overtime isn’t necessarily bad, but it’s often unavoidable when demand is high. However, excessive or unplanned overtime can drain your budget and create compliance risks.
Using labor forecasting, you can prevent unnecessary overtime, ensure proper staffing levels, and avoid last-minute surprises. With demand-based scheduling, you can pay overtime when it’s needed, but never by accident.
Workforce.com payroll can simplify compliance with CA overtime laws
Workforce.com is an all-in-one system designed to handle complex labor laws and ensure you release accurate pay every payday.
Payroll compliance starts long before payday. It begins with onboarding, time tracking, scheduling, and shift management. Workforce.com streamlines each step to reduce errors, prevent compliance risks, and ensure workers are paid correctly.
Onboardingis automated; employees enter their details, eliminating double data entry and reducing errors.
Time and attendance trackingrecords employee time logs, daily overtime, and ensures employees take meal and rest breaks.
Alerts will be sent when employees fail to take breaks, are about to exceed their legal work limits or hit unplanned overtime.
Accurate payroll calculationsbased on employee classifications, overtime rates, and state-specific rules that are automatically factored into payroll.
See Workforce.com in action and discover how it can help you ensure compliance in California and beyond. Book a call today.
This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to compliance with the most current standards.
Within his first few days back in office, President Trump issued executive orders halting DEI programs in federal agencies. On January 20, the first executive order directed the shutdown of federal DEI programs. Federal DEI staff were also put on leave, and federal grantees had to discontinue DEI practices deemed discriminatory or preferential.
The next day, the White House published another executive order emphasizing merit-based opportunities, individual initiative, and hard work. It also instructed the Attorney General to recommend strategies for enforcing civil rights laws and ways to “encourage businesses to end illegal discrimination and preferences, including DEI.”
While the executive orders primarily target federal agencies, grantees, and contractors, their impact was also felt across the private sector as companies reassess their DEI commitments.
Even before these orders, some major corporations had begun scaling back DEI initiatives. Last year, Walmart discontinued its DEI training and chose not to renew its racial equity center, instead shifting its language to emphasize “belonging“. Similarly, Target ended its three-year DEI goals and will no longer participate in diversity-focused surveys, including HRC’s Corporate Quality Index. McDonald’s announced restructuring its DEI efforts, transitioning its diversity team into a broader Global Inclusion Team, and will conclude its Supply Chain’s Mutual Commitment to DEI pledge.
However, some businesses are standing firm. Costco shareholders turned down a proposal to evaluate their current DEI practices. Cosmetics brand e.l.f. also has a similar stance and reaffirmed its commitment, maintaining its policies despite broader industry pullbacks.
What does it mean for your business?
Should you roll back your DEI programs? While recent executive orders may create pressure to scale back, it would be best to evaluate your policies before making any drastic changes.
Workplace fairness should always be a priority whether you have formal DEI initiatives or not. If you manage an hourly team, here are some ways to practice fairness and equality across your organization.
Hire without bias. If your hiring process includes explicit demographic quotas, it may be legally risky under the new executive orders. Instead, focus on qualifications, skills, and experience rather than factors like race, age, or gender. Use structured hiring practices that prioritize job-related qualifications. Workforce.com’s HR platform allows hiring teams to set preliminary screening questions on job listings, helping filter candidates based on essential qualifications, not personal demographics.
Distribute work hours fairly. Shift assignments should be fair and consistent to avoid unintentional favoritism. Use a scheduling system that allows you to distribute work hours and overtime evenly among team members. Workforce.com’s scheduling software enables managers to allocate work hours based on demand, availability, maximum hours allowed, and other compliance requirements.
Audit your current policies. While there’s still no definitive list of practices or policies deemed “illegal” under the executive orders, it’s wise to assess your current policies for anything that could be interpreted as preferential treatment. Review existing DEI programs to ensure they focus on merit, skills, and equal opportunity rather than demographic-based preferences. In addition, if your company receives federal grants or is a federal contractor, ensure that your policies align with the latest executive directives to avoid compliance risks.
Do businesses need to abandon DEI practices? Not necessarily, but they have to do it smarter. Focus on fairness, merit, and equal opportunity so that policies can remain compliant, maintain an inclusive work environment, and stay pace with evolving federal regulations.
2025 will be filled with new and familiar trends, and business leaders must devise strategies specific to hourly teams to maintain employee retention and remain competitive.
This year, there would be increased emphasis on employee experience, continuous AI adoption, and a potentially bigger labor gap with tighter immigration rules.
An all-in-one HR technology can help hourly teams stay ahead of the trends and overcome staffing challenges.
This year, hourly workforces will face a mix of old and new challenges, from labor shortages to technological advancements and a maze of shifting compliance rules. HR leaders and managers must step up in 2025 to retain top talent and stay competitive, or risk widening the labor gap and losing their team to competitors.
So, what’s coming up on the horizon? Check out these top HR trends you’ll want to watch when managing your hourly workforce this year.
1. Staffing and hiring challenges with stricter immigration laws
With stricter immigration laws and ongoing labor shortages, hourly workforces face a greater challenge in attracting and retaining talent.
According to the Bureau of Labor Statistics, foreign-born workers account for 18.6% of the U.S. civilian labor force. With stricter immigration laws, a bigger labor shortage challenge could be looming.
While the crackdown targets undocumented migrants, even legal, documented workers may struggle to stay in the U.S. when mass deportation separates them from their families. This uncertainty can push them to leave, creating vacancies in industries that heavily depend on hourly workers. Worse, some immigrants may not aspire to come to the U.S. for work at all.
For instance, in Nebraska, one of the top meat producers in the U.S., businesses are already grappling with a massive labor shortage. For every 100 jobs, there are only 39 workers to fill them, and Nebraskans fear that the gap will only get bigger.
So, what does this mean for employers? They must fight hard to not only hire and attract talent but also maintain employee satisfaction.Another key area is tightening the vetting process. While undocumented workers have rights, knowingly hiring them is illegal for employers. This creates an added challenge for HR professionals to ensure their vetting procedures are foolproof, preventing penalties or complications from accidentally hiring ineligible individuals.
How to stay ahead:
HR departments need a system that streamlines talent acquisition, quickly assesses qualifications, and ensures new hires and existing staff stick around.
Workforce.com’s HR system can augment recruitment by allowing you to post job openings across your business locations. You can even generate QR codes for job postings, making it easy for interested applicants to scan, read job descriptions, and start their application process.
Set custom questions to quickly qualify candidates, like their experience, available hours, and whether they have the qualifications and documentation to work in the U.S.
Plus, Workforce.com helps your managers retain current staff by offering flexibility with shift swapping and advanced scheduling. It also tracks people analytics such as performance, highlighting areas for training, upskilling, and development.
2. AI adoption in HR processes will continue
Artificial intelligence will continue to play a role in HR this year. While we have seen its adoption in the previous years, the trend will continue in 2025. More and more organizations will adopt AI in human resources to eliminate admin tasks, repetitive processes, and paperwork.
However, AI can be a double-edged sword in workplaces. Sure, it can make things easier and faster, but questions remain about its impact on work quality, particularly with the rise of generative AI tools. Some even call for regulatory rules, prompting organizations to develop policies governing how employees use AI at work.
How to stay ahead:
Focusing on how AI can bring the most value is key to making the most of it. For hourly teams, labor forecasting is key. Workforce.com has long used AI to help organizations anticipate demand and avoid overstaffing or understaffing.
Workforce.com labor forecasting system utilizes AI to analyze sales, booked appointments, historical foot traffic, seasonal trends, weather, and other business-specific indicators. For example, hospitals can factor in ICU bed availability, while hotels can account for bookings and reservations. Considering these variables, the platform accurately forecasts staffing needs for each shift, helping you curb overstaffing, reduce overtime costs, and improve decision-making around schedules.
3. Shifting labor laws pose new challenges to HR
As if labor compliance was not complicated enough, a new administration in place in 2025 could throw even more curveballs.
Case in point: President Trump’s move to end “illegal” discrimination in DEI programs. In a recent executive order, he ordered DEI programs within federal agencies. While it does not directly ban DEI programs in the private sector, the order imposes requirements on federal contractors and grant recipients, potentially increasing scrutiny of DEI policies. This could create pressure for private companies to adapt to the shifting political and regulatory landscape.
In addition, there are changes slated to happen this year, such as increases in minimum wage laws in some states and the enactment of paid leave laws in some cities.
How to stay ahead:
Employers should carefully balance compliance with federal directives and maintaining fair practices to support their teams and prevent long-term workforce challenges. For hourly workers, this can be as simple as being mindful of how shifts and overtime are distributed. Workforce.com makes this easier by giving managers a clear, real-time view of how many hours each team member works. This helps ensure everyone gets the right amount of hours or shifts.
Labor compliance is tricky, but automation can simplify the process. HR teams can stay on top of labor regulation developments through systems with a compliance engine, such as Workforce.com.
Workforce.com ensures compliance for hourly teams at every stage of HR management—covering employee classification, wage and overtime calculations, adherence to allowable work hours, and compliance with break time rules. From hiring and onboarding to scheduling and payroll, managers can trust they’re operating within state and federal laws every step of the way.
4. A new emphasis on employee experience
For white-collar and salaried workers, a good employee experience often means hybrid work setups, the freedom to do remote work, and opportunities for long-term career development. But hourly workers, who are typically onsite and part of operations that may run around the clock, have quite different needs. So, what does a positive employee experience mean for them?
Hourly workers desire work-life balance, too, but in a different way. For frontline teams, it’s about knowing their schedules in advance, allowing them to plan for childcare, a second job, or personal time off. Flexibility also means having options for how they work, like swapping shifts with coworkers or picking up extra shifts without a lengthy approval process.
Employee well-being will also be a focus in HR strategies in 2025. It’s about offering programs such as counseling services, mental health programs, and wellness initiatives tailored to the needs of hourly workers. This could mean offering flexible work options, encouraging regular breaks, and ensuring that workers have a safe space to express concerns without fear of stigma.
HR teams should also consider upskilling, reskilling, and defining career paths for hourly staff. Consider offering certification programs or opportunities to learn new technical skills. It’s also time to define growth paths for these teams. Can they move into higher-paying roles? Is there a path to salaried positions? Answering these questions can make a big difference in retaining and engaging hourly employees as well as addressing any skill gap in your business.
How to stay ahead:
Much of the employee experience for hourly employees involves admin processes, which can be easily streamlined with the right technology. Workforce.com simplifies scheduling with its labor forecasting and scheduling software. Create demand-based shifts in minutes and notify staff weeks in advance. If you’re in a city or state with predictive scheduling or Fair Workweek laws, this tool also helps ensure compliance.
Shift swapping or shift replacements is another area where Workforce.com can make it easy for managers. The system eliminates long approval processes and back-and-forth communication. Managers can quickly offer vacant shifts to qualified employees, who can pick them up with a single click using the employee app.Since most of this admin work is done, HR leaders and managers now have time to optimize hiring practices, spend more time coaching their teams, devise career trajectories, determine appropriate training for their employees, which they can also track using Workforce.com’s performance management module.
5. Prioritizing constant feedback and review process
Another continuing trend into 2025 is focusing on more dynamic feedback and breaking free from rigid timelines like annual reviews. This is especially important for hourly workforces, where the fast-paced environment calls for real-time input and adjustments.
How to stay ahead:
Operational issues can’t wait until the next performance review. Managers need a system that enables them to give and receive feedback in real-time. Workforce.com can prompt employees to rate their shifts at the end of the day. Using this feedback, managers can see what’s working and what needs improvement. This approach helps maintain a good work environment, resolve issues early and keep them from escalating over time.
6. Access to wages and pay transparency
Businesses will maximize payroll technology to offer more flexibility and options to employees. This year, the focus will continue on giving employees the option to access their wages before payday. This can serve as a great middle ground for companies that can’t yet increase salaries or augment benefits.
Transparency around wages and payslips will remain a key priority. Employees expect an easy way to view their payslips and understand how their wages are calculated, especially for hourly staff.
How to stay ahead:
It’s all about having an efficient payroll platform, one that’s housed in the same ecosystem as HRIS and time and attendance tracking. Payroll is not just about processing paychecks. It’s about ensuring that all the data used to calculate employee pay is accurate, starting with employee qualifications and time logs. Workforce.com streamlines this process, making it easy for you and your employees to access accurate pay information, including payslips.
7. Integration between HR, workforce management, and payroll will be a top priority.
With all the changes and disruptions this year, organizations need a system that will allow them to streamline their recruitment, create worthwhile onboarding processes, track employee time accurately, schedule employees according to classifications and preferences, and pay them accurately. It is all about breaking down silos between these processes, and businesses would likely seek a system that streamlines all of these.
How to stay ahead:
Innovative businesses would stay ahead by ensuring their systems operate well together. Even better, they opt for a platform where everything is housed in a single system.
Workforce.com eliminates silos between HR, workforce management, and payroll. All processes operate within one ecosystem, ensuring a single source of truth and smooth coordination across the board. With a unified platform, managers have less digital upkeep, as they only need to log in once to manage everything—no switching between multiple applications.
Staying ahead with Workforce.com
Organizations that work hard will lead the pack, especially with everything happening in the business, technology, and labor landscape. They must focus on creating strategies to attract new workers, retain their current teams, and ensure profitability and maintain a good workplace culture simultaneously.
Workforce.com handles the admin side, so you can focus on the big picture. It adapts to market shifts, labor law changes, and trends, streamlining every step of the employee journey.
Ready to see how Workforce.com can help your business? Book a call today.
Retail businesses are expected to add 520,000 seasonal jobs in the last quarter of 2024. While this number is slightly lower than last year’s, the race to hire seasonal workers remains tight.
Labor forecasting is vital for retailers to determine the ideal staffing levels they need in time for the holiday shopping peak season. On top of that, they must speed up hiring and onboarding for seasonal roles.
Workforce.com can help retailers stay ahead with smart labor forecasting, easy hiring and onboarding, and streamlined workforce management.
The holiday shopping season is fast approaching, and retail businesses must be ready for surging foot traffic and online sales. But it’s not just how you manage inventory or come up with marketing strategies to attract shoppers. It’s about having the right staffing strategies in place to provide the best customer experience whether in-store or online. And the onus is on HR and managers to recruit and onboard seasonal workers, manage unpredictable schedules, and avoid burnout during a very busy time of year.
Typically, retail businesses hire seasonal workers such as sales assistants, warehouse staff, stockroom workers, delivery drivers, and customer service representatives to handle the surge in demand and ensure a smooth shopping experience.
According to the National Retail Federation (NRF), 200.4 million people shopped from Thanksgiving, Black Friday through Cyber Monday in 2023. Both online and brick-and-mortar stores felt the rush, with 121.4 million people making in-store purchases and 134.2 million buyers online.
While spending may slightly cool down this year, retail businesses still need to prepare for higher demand than other quarters. And prices and offers aren’t the only areas where competition is fierce. Retail businesses should also step up to strengthen staffing and recruitment strategies.
The race to attract seasonal workers
Although slightly lower than last year, market projections show that the retail industry is still expected to add 520,000 seasonal jobs in the last quarter of 2024, down from 564,200 seasonal jobs in 2023. That said, the competition for seasonal workers remains tight, and retailers must act fast to fill staffing gaps before the shopping rush hits. Big retailers are not holding back. They rolled out aggressive tactics like nationwide hiring events and on-the-spot interviews. They know that while consumer spending may dip, shoppers will still spend—just more carefully. If you have a solid client base and strong customer loyalty, you need to be prepared for your demand to soar. Here are seven practical tips to help you prepare:
1. Identify your unique staffing needs.
Labor forecasting software integrates with your point-of-sale system, using its historical sales data to predict upcoming labor needs. You can also manually upload other kinds of demand data like appointments, foot traffic, and more – just use whatever makes the most sense for your business. A machine learning algorithm combines all of this data with economic trends, weather forecasts, and staff availability to let you know exactly how many workers you need for each shift; this makes your scheduling and hiring decisions much easier. Plus, it’ll help you determine whether you need more seasonal hires or if adding extra hours and overtime will do the trick.
2. Strengthen your hiring strategy.
As you gear up for the shopping season, a robust hiring system is vital to attracting top talent without getting buried in admin tasks.
Job boards are great for spreading the word, but why stop there? An applicant tracking system (ATS) like Workforce.com lets you generate QR codes for your job openings, print them, and place them in your retail stores. Interested applicants simply scan the code and submit their application.
To save time, you can set up pre-qualifying questions about availability, experience, and credentials. This way, only the best candidates move forward to interviews, and you only spend time with those who meet your criteria.
Workforce.com’s ATS helps you track applications, spot roadblocks, and identify what’s causing delays. This will ensure that you lock in the workers you need for the season.
3. Fast-track onboarding and training for seasonal hires.
The thing with the shopping season is that you need to onboard seasonal workers fast. Unlike regular hires, you don’t have the luxury of 30-60-90 day milestones to fully integrate them. Seasonal workers need to be onboarded and be up and running right away. A good onboarding system will let you do just that.
Start by streamlining the paperwork. Workforce.com captures all the necessary new hire information—personal details, bank information, W-4s, and more—all without the hassle of paperwork. Newly hired seasonal workers can log into the system and input their information directly, eliminating manual data entry.
While seasonal employees might have fairly straightforward jobs, they still need training. Even experienced sales associates need orientation about popular items, store layout, and return policies.
Even if you’re running an e-commerce platform, seasonal workers still need to learn how to navigate the online store, order queues, waybill processing, inventory management, and checkout process.
To get seasonal workers up to speed, consider implementing a buddy system where you pair them with full-time employees so they can learn the ropes faster and be ready to perform their best.
4. Streamline how you delegate tasks.
Operations during the peak holiday season will only be as smooth as how you communicate tasks and expectations. When working with seasonal workers, you must assign responsibilities clearly and precisely.
Workforce.com’s task management system allows you to delegate responsibilities and send out to-do lists. Seasonal workers are instantly notified of their tasks, can check off completed items, and even provide proof of completion, all in real-time, through the Workforce.com app. It’s a simple way to ensure everything gets done right when needed.
5. Optimize schedules based on demand.
Understaffing can be a disaster, but overstaffing isn’t cost-effective either. To remain profitable, you need to schedule shifts based on demand.
While you can’t predict demand perfectly, there are plenty of indicators to guide your scheduling decisions. Looking at historical data is a great start (as we covered earlier), but scheduling isn’t a “set it and forget it” task. You’ll need to keep optimizing as the season unfolds.
When the season is in full swing, you must monitor your wage cost metrics and see where to optimize. How much foot traffic are you getting? Is there a weather forecast that can affect that? Do you need to add more workers? Cut back on hours? Or maybe just shuffle your workers to balance overstaffed and understaffed areas?
At the same time, you can also tap your team for feedback. Workers are on the front lines and can give you valuable insights on what’s happening on the ground. Have them rate their shifts and share where improvements are needed and what’s working well. Their feedback can provide information to fine-tune your schedules and operations.
Workforce.com’s scheduling system allows you to do just that. You can compare scheduled wage costs with sales data in real-time, seeing where to optimize labor levels. It also has a shift rating system where your team can provide feedback about things like communication, management, and more.
6. Ensure complete oversight of your workforce.
The holiday rush can get hectic, and managers need a streamlined way to oversee their teams. With orders to fulfill, shipments to send out, and a store to run, it can take time to juggle staff scheduling, time tracking, and attendance issues.
That’s where Workforce.com can step in and make things easier. The app lets managers see who’s clocked in and who’s running late. In case of no-shows or last-minute absences, you can automatically offer vacant shifts to available, qualified staff. Filling the gaps only takes a few clicks, whether via desktop or mobile app. Need to send a quick message to the team? The app has that covered, too.
Workforce.com also notifies managers if an employee is about to go into overtime. Before they clock in the extra hours, you can decide whether it’s worth extending their hours or if their tasks can wait until the next day.
7. Know what labor laws apply to seasonal employees.
Hiring seasonal employees allows you to scale your team during busy periods. However, you must also be aware of any labor laws that apply to seasonal workers to ensure they are paid correctly and treated fairly, safeguarding you from legal issues.
According to the FLSA, non-exempt seasonal workers should receive minimum wage and overtime pay if they work more than 40 hours a week.
If hiring students or teens for seasonal work, you must also be mindful of child labor laws to ensure they’re only scheduled for the appropriate number of hours and times of day.
What about taxes? Per IRS rules, the same tax withholding rules apply to seasonal employees as that of other employees.
Plus, depending on specific criteria, seasonal employees may be entitled to benefits such as unemployment insurance, workers’ compensation, healthcare, retirement benefits, and paid sick leave.
The holiday shopping season is a massive opportunity for retailers to boost sales, increase brand recognition, and gain new customers. To make the most of it, you need a solid plan and an efficient system to help you stay agile and organized. Workforce.com is the perfect system for this busy time of year, giving you the right tools to optimize your staffing levels as the season unfolds.
Discover how Workforce.com can help you stay ahead not just this holiday shopping season but all year round. Book a demo today.
The hiring process is an employer’s first chance to make a good impression. It needs to be seamless to attract the best candidates.
86% of HR professionals say that recruitment is becoming more like marketing. And in today’s competitive labor market, it’s easy to see why.
Applicant experience is crucial for keeping top candidates engaged and maintaining a good employer brand. Streamlining recruitment using technology can transform a good hiring experience into a great one.
In a tight labor market, hiring can make or break your chances of capturing quality new hires. It is often the first touchpoint between a company and potential new employees, and an excellent first impression is everything. A clunky approach to hiring will not only slow things down but also deter quality people from applying.
If you’re looking to attract qualified candidates fast while keeping things efficient, it might be time to rethink the hiring process. In this post, we’ll dive into 10 practical tips to improve your recruitment strategy.
1. Focus on setting clear hiring goals.
All of your recruitment initiatives will stem from your hiring goals. They act as your jumping point; if you’re unclear about these, you risk wasting resources and missing out on filling the company’s staffing needs.
When determining what your hiring efforts should aim for, here are questions you need to ask yourself:
What are the staffing gaps, operational needs, or business needs you must address? Is it filling roles for a new business location, or is it to replace team members who left?
What are the specific roles needed to fill the gap?
What are the characteristics of an ideal candidate?
What are the specific skills or experience candidates must have?
What soft skills must they possess? Consider your company culture and define what characteristics would make a hire fit to work with the team.
How fast should you be able to hire?
Talent acquisition requires significant effort, and you should focus your energy on defining hiring goals that drive business results.
2. Create clear job ads.
“What’s in it for me?” – This is the question your job descriptions should answer for potential candidates.
Try to frame your job listings through the applicant’s POV. First, the listing should cover the basics of the job role, which includes what’s expected in terms of tasks and responsibilities. Second, it should paint a picture of how an ideal candidate would fit in the organization, which can allude to the type of working environment you offer.
Let’s discuss wording. Avoid overly technical jargon and internal corporate speak. Potential candidates won’t care much for those. Instead, keep your wording concise and direct and language neutral.
Here are crucial elements that your job descriptions should cover:
Job title
Duties and responsibilities
Required skills, competencies, and qualifications
Preferred qualifications or nice-to-haves
Working location
Benefits
Salary range
In addition to the basics, you can include more information about the team they will be part of and brief details about the organization.
Writing job descriptions can be time-consuming. We’ve curated a list of job description templates to give you a headstart. Feel free to download them and customize them according to your specific requirements.
3. Be smart with advertising open positions.
Generally, hiring teams utilize job boards and social media sites like LinkedIn to reach as many candidates as possible. While those are great, there are other opportunities to get the word out.
Consider placing job postings in your place of business. Of course, no one has time to read a job description if they are just passing by your cafe or retail store, so why not simply print out a QR code that leads to the details of your job opening?
Workforce.com’s Applicant Tracking System (ATS) lets you print customized QR codes that link to online job applications. Any interested applicant can simply scan the code and apply straight from their mobile devices, and you will be alerted when submissions come in.
But before you go broadcasting an open position to the public, think about the roles you’re trying to fill. Consider hiring from within to reduce the time and resources it takes to onboard a new employee.
What about referrals? Nothing beats word-of-mouth advertising. Your current employees can be your best ambassadors since they have first-hand experience. They can share insight into company culture far better than any job posting you publish.
4. Get serious about employer branding.
Better branding attracts better candidates. In fact, 86% of HR professionals agree that recruitment is becoming more like marketing, according to a study. And with today’s challenging labor market, it’s easy to see why. Like marketing, you need to understand your target audience—your ideal candidates—and find ways to stand out.
To get leadership on board, here’s a compelling stat: a strong employer brand can reduce the cost-per-hire by up to 50%. Plus, half of job seekers won’t consider working for a company with a bad reputation. In short, employer branding isn’t just nice to have; it’s crucial for staying competitive.
Start by improving the hiring experience. Use data to track candidate experience and satisfaction, communication frequency, and key metrics like time-to-hire. Streamlining these processes with applicant tracking technology enhances efficiency and leaves a positive impression on candidates. Remember, every interaction counts, and a smooth hiring process can make all the difference.
Keep in mind that negative stories spread fast these days, whether it’s a poor recruitment experience or a toxic work environment. With social media and online forums, you don’t want to be trending for the wrong reasons.
So, how do you build a strong employer brand? It starts with your core: a healthy company culture. Today’s candidates can spot inauthenticity a mile away, so your efforts need to be genuine. Once you establish strong values, they’ll naturally shape how you hire and manage talent on a daily basis.
5. Use technology to streamline the process.
There’s a lot of work that goes into hiring. Without the right tools to help you stay organized, you run the risk of mishandling important information, wasting time, and hiring the wrong people. Consider using an HR platform or an applicant tracking system (ATS) to streamline your hiring process.
Workforce.com is a prime example of one such system. Its HR suite significantly reduces time spent sifting through resumes and onboarding new hires. Here’s how it improves your recruitment efforts:
It helps you get more applicants.Every time you create a new job posting, you can generate a QR code associated with the listing and post it in your business to make access to applications easier. Workforce.com also collates all previous applications and the positions a person is interested in. When you post new job listings that match a previous applicant’s interests, the system notifies this talent pool, automatically getting you more traction from the moment you post the new job.
It helps you with the selection process and pre-qualifies applicants quickly by setting up role-specific questions about availability, experience, and requirements. This enables you to screen candidates before scheduling interviews, weeding out those who don’t meet your criteria upfront.
It reduces data reentry by using one user profile across hiring, HR, and payroll. Since the whole employee lifecycle is synced in Workfore.com, applicant information from the hiring stage is automatically brought into a new hire’s payroll and HR profile. This means that once someone fills out an application, they have essentially already filled out about 80% of their employee profile. If you decide to hire them, all of this information is used—there’s no need to create multiple profiles with repeat information.
It helps you onboard new hires right away. Within minutes, your new hires can fill out onboarding forms, provide their personal information, and submit their W-4s and I-9s. No lengthy paperwork and manual entry is needed.
It helps you track recruitment metrics. It gives you an overview of hiring progress, spotting delays, and identifying roadblocks. Plus, it covers all your locations, so you can see who needs extra recruitment support.
An ATS is great for hiring, but one that’s housed in the same HR system as onboarding and payroll is a game-changer and can save a significant amount of time. It streamlines the entire journey—from recruitment to onboarding to that first paycheck.
6. Eliminate unconscious bias.
We’re human, and we’re naturally wired to have biases. However, if these biases are left unchecked during the hiring process, they can lead to poor decisions. Take steps to eliminate anything clouding your judgment from focusing on what a candidate truly offers.
Reduce unconscious bias by focusing solely on an applicant’s technical skill sets instead of their demographic details such as gender, race, and age. Furthermore, you can view job applications with redacted names or personal information so their skills and experiences are front and center.
7. Improve how you interview.
The interview stage is crucial for applicants and the company to get to know each other better. It’s an opportunity to assess technical skills and values, making it the ideal time to evaluate cultural fit alongside qualifications. And you do that by asking the right questions.
Whether you utilize structured questions or free-flowing discussions is your prerogative. But regardless of what route you choose, make sure that it helps you evaluate applicants objectively.
Structured interview questions help you gauge how applicants fare against each other. This interview style makes it easy to compare and judge applicants based on their answers to a series of important and relevant questions.
On the other hand, a less structured approach can better reveal a person’s values, personality, and soft skills, helping you assess their cultural fit. Unstructured interviews can also make applicants feel more comfortable during interviews.
Ultimately, the goal is to find the best fit for the role. Whether you prefer a structured or flexible interview style or a mix of both, ensure it leads to a fair and informed hiring decision.
8. Understand who you’re hiring.
Not all hiring processes are the same, especially when it comes to salaried versus hourly roles. Your recruitment approach should adapt to each, from sourcing, screening, onboarding, and compliance.
For instance, recruiting a line cook for one of your restaurants is a much different process than hiring a finance manager for an insurance agency. Hourly roles often require a faster and leaner process to meet urgent staffing needs. Having a system that lets candidates apply easily and keeps unnecessary data and timelines to a minimum is ideal.
In contrast, hiring for salaried positions usually involves multiple interview stages and a more thorough vetting process. For these hires, it’s crucial to have a comprehensive applicant tracking system that monitors each stage efficiently and keeps candidates engaged throughout the process.
Ultimately, hiring for hourly positions prioritizes speed, volume, and efficiency, while salaried roles focus on depth, fit, and long-term alignment. Understanding these nuances allows you to tailor your hiring processes and shapes how you manage time tracking, shift scheduling, and payroll for each type of hire.
9. Always communicate with applicants.
You don’t want to be labeled as an employer who ghosts applicants, do you?
While you will undoubtedly need to prioritize some applicants over others, you should never leave unqualified candidates hanging. Keep candidates informed every step of the way —from confirming their application to updating them on the next steps, whether they qualify for an offer or not.
Additionally, offer a channel for applicants to reach out when they want to follow up or ask a question. This will help them feel at ease and keep strong candidates engaged in the process.
10. Regularly evaluate your hiring process.
As new technologies and trends emerge, your hiring process can quickly become outdated. Conduct regular assessments of your hiring process and practices. Identify what works, spot areas for improvement, and tackle any roadblocks. A flexible, evolving hiring process keeps you aligned with market shifts, maintains efficiency, and positions you to attract top talent.
Fill roles faster and simplify your recruitment process with applicant tracking software
Hiring hourly employees? Workforce.com’s online hiring system can help you find the best talent to fill your staffing needs.
Workforce.com is end-to-end HR, scheduling, and payroll software for hourly teams.
The cloud-based platform features an applicant tracking system that streamlines hiring—from posting job advertisements to pre-qualifying candidates, interviewing them, and eventually onboarding them—all without lengthy paperwork or double entry.
Discover how Workforce.com can help you with hiring and more. Book a demo today.
Employers are legally responsible for correctly classifying workers according to the FLSA, IRS, and any applicable state-based rules. However, the line between employees and contractors can easily get blurred.
Workforce.com helps streamline contractor compliance management by ensuring workers are treated according to their classifications.
Suppose you are considering hiring independent contractors for a specific job. Or maybe you already employ a few. Have you done all of your research to handle them compliantly? If not, this guide is for you.
Strict labor standards govern how to properly classify and manage independent contractors, otherwise known as 1099 workers. Let’s examine how to stay on top of these rules and safeguard your business from legal risks.
Why hire an independent contractor?
Hiring independent contractors offers flexibility, especially when you need help for short-term projects. Unlike full-time employees, contractors usually come in with the expertise required to start working right away, meaning less time spent on training and onboarding.
Another advantage is cost-effectiveness. Contractors are not entitled to overtime pay, employee benefits like health insurance or retirement plans, or perks like paid vacations and promotions. You also avoid expenses like unemployment insurance and tax contributions that generally come with traditional employment.
While engaging independent contractors gives you flexibility, there are risks involved. Misclassification is the biggest one. Since contractors are not entitled to the many lucrative benefits of regular employment mentioned above, misclassifying an employee as a contractor can result in serious legal trouble, fines, back taxes, and even lawsuits. Because of this, it is vitally important to understand what qualifies someone as a contractor.
Key legal guidelines for managing independent contractors
Employee Classifications
Correctly classifying a worker as a contractor is the first step to staying compliant. At the federal level, the Fair Labor Standards Act (FLSA) uses a six-factor test that evaluates the “totality of circumstances” around the working relationship. With this assessment, businesses can determine the correct classification while considering crucial aspects such as control, independence, and the nature of work. These factors are:
Opportunity for profit or loss depending on managerial skill
Investments by the worker and the potential employer
Degree of permanence of the work relationship
Nature and degree of control
Extent to which the work performed is an integral part of the potential employer’s business
Skill and initiative
It’s important to note that the FLSA doesn’t assign a rule defining whether someone should be a contractor or an employee. Instead, it evaluates the facts of each situation to determine the working relationship and whether the worker is truly independent and doesn’t rely on the business like an employee would.
Aside from federal rules, businesses must also check if there are state rules that govern how they should differentiate contractors from employees. In California, for instance, a worker is classified by default as a standard W-2 employee unless all of the following conditions are met:
The worker is free from the control and direction of the hiring entity in connection with the performance of the work
The worker performs work that is outside the usual course of the hiring entity’s business
The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
In essence, a worker in California can only be classified as an independent contractor if they have autonomy over how and when they perform their tasks, as long as they complete their responsibilities. Also, the work must be fundamentally different from what the business does; For instance, a hospital commissioning people to construct a new building wing. Lastly, the worker must be independently engaged in an established trade and offer services to multiple clients.
Understanding the difference between independent contractors shapes how you manage payroll and benefits. Full-time employees are protected by wage and hour laws, ensuring they’re paid at least minimum wage and receive overtime pay. Full-time employees are also protected under meal break rules depending on the state. On the other hand, 1099 workers aren’t generally covered by these rules. Independent contractors are paid according to their contracts. In addition, they are not entitled to certain benefits, such as health insurance and workers’ compensation.
IRS Rules
Employers must also look at IRS guidelines because these will define how active their role is when handling taxes for their workers. It will also dictate how they report workers’ compensation, the types of forms to submit, and whether or not they would be legally liable to withhold taxes.
Employers withhold and deposit income taxes, social security taxes, and Medicare taxes from employee wages. On top of that, they also match contributions to SSS and Medicare taxes. But it’s a different situation for contractors. Employers generally don’t deduct income taxes from the contractor’s payment and don’t need to match contributions.
So, under IRS rules, what factors will help you gauge whether a worker should be classified as an employee or contractor?
Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how a worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of relationship: Are there written contracts or employee type benefits (that is, pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Like California’s ABC Test, the IRS guidelines also consider the level of autonomy workers have over their jobs. Employers typically have less control over how contractors fulfill their tasks and don’t dictate the methods and tools workers use.
The IRS also considers how financially dependent workers are on their employers. Contractors typically cover their own costs, such as transportation and equipment, whereas employees rely on their employers for those provisions.
Employees typically have an ongoing relationship with an employer, while contractors typically work for a set period on specific tasks or projects and aren’t as involved in a company’s core operations.
Classifying employees correctly is also a prerequisite for filing the correct forms and determining whether you must file a W-2 or 1099. Employers typically file W-2s for full-time and part-time employees, reporting all wages, compensation, and tax withholdings for the year.
On the other hand, form 1099 shows how much an employer pays an independent contractor in a tax year. You must file a 1099 if a contractor earns $600 or more annually. These 1099 forms will not include tax withholdings since contractors calculate and submit them to the IRS independently.
OSHA has general safety regulations that apply to most workplaces, but specific guidelines exist for construction, maritime, and agriculture industries. If you’re in any of those sectors, it would be wise to know these regulations.
Typically, OSHA regulations cover the following areas:
Safety training requirements include construction safety training, such as handling scaffolding, fall protection measures, and ladder safety.
Handling hazardous tasks, including hazard communication standards, proper labeling, data sheets, and training on handling hazardous substances.
Personal protective equipment (PPE) for specific working environments, including hard hats, gloves, goggles, or respirators, should meet OSHA standards.
Rules that must apply when multiple employers are present in a worksite, which is typical for big projects involving contractors and subcontractors. The company that hired them, the controlling employer, is responsible for following OSHA rules. This means that they must check for hazards, ensure safety standards are followed, especially with heavy equipment, and have a system to report and address safety concerns.
Aside from training, employers are also responsible for communicating such rules and ensuring that contractors have the safety training needed for the job.
How to build an effective contractor compliance management policy
Employing third-party contractors differs from managing employees, but your legal obligations remain just as important. It’s crucial to have a dedicated compliance strategy for employing contractors to reduce risks and avoid violations. Here are some practical tips:
Establish rules and guidelines for classifying contractors.
A significant part of contractor compliance is classifying them correctly, so you must have a process for doing so.
Before hiring, vet potential workers carefully. Assess the task or job and how you plan to oversee it. From there, you can determine whether a part-time worker or a contractor is the right fit. Getting the classification right from the start ensures compliance with tax filings, payroll, and other regulations.
Create airtight contracts.
Contracts and agreements between you and contractors must clearly outline the scope of work, duties and responsibilities, and payment terms. Draft them with the regulations in mind. To avoid legal missteps, ensure these agreements comply with FLSA, IRS, and OSHA regulations.
Avoid scope creep.
The law is very clear on factors that dictate whether a worker qualifies as an independent contractor. Remember that it all comes down to their financial and behavioral independence. Be careful not to overstep legal boundaries that could change their classification.
The key is consistency. Set clear rules for overseeing the job and adhere to the contract’s terms. Your treatment of contractors should remain uniform and standard throughout the project.
Provide necessary training.
Safety training is a must for hiring contractors. Ensure they complete all required health and safety training before the project begins.
It’s also in your best interest to train your managers on the legal principles governing contractors and employees. This can equip them during the vetting process and help them better manage projects in accordance with regulations.
Set regular progress check-ins.
See to it that the process stays on course. Establish regular check-ins where contractors submit performance reports detailing their deliverables, remaining tasks, and any challenges they face. This keeps you informed and allows for timely adjustments if needed.
At the same time, conduct routine assessments or audits from your end to track how the project is progressing. This helps ensure that contractors are set to meet deadlines and follow safety and health regulations. Regular check-ins keep the projects on track and minimize potential issues before they become bigger problems.
Stay abreast of relevant rules and regulations.
Labor laws can change at any time, so employers must stay up-to-date. Case in point: US Department of Labor’s final rule on worker classification. Previously, the law only looked at the economic dependence of workers on their employers. The more economically dependent a worker was on the employer, the more likely they were to be considered an employee. However, the changes take a broader approach and now consider the “totality of circumstances” when classifying workers.
Streamline the process with technology.
Contractor compliance can be complicated, requiring new administrative tasks and management processes for your managers and HR. However, technology can simplify some processes involved with working with contractors, such as onboarding, time tracking, payroll, and documentation.
Workforce.com simplifies contractor compliance
Managing employees is complicated enough, and adding contractors into the mix can come with its own set of challenges. But don’t let this discourage you from getting contractors for specialized projects, especially if they provide more flexibility.
There’s a way to manage contractors in a more streamlined way. Here’s how Workforce.com can help.
Onboarding
Workforce.com’s onboarding system lets 1099 workers easily and independently submit all necessary paperwork, bank details, and contracts to employers. This self-service portal relieves the administrative burden from the employer and ensures all information is in place for contractors to get paid correctly.
Time tracking
Depending on the contract, contractors submit timesheets before they get paid, but you can simplify the process with Workforce.com’s time and attendance system. Instead of dealing with paperwork, contractors can log in and out through the time clock, automatically generating timesheets based on their time punches.
You can set up a Workforce.com on-site or you can allow contractors to clock in and out through their own device via the Workforce.com app. This ensures accurate time tracking across multiple locations, making recordkeeping more manageable and ensuring contractors are paid on time, especially if specific hours were agreed upon.
Scheduling & task management
Workforce.com also has a scheduling system that contractors can use to plan their work accordingly. They can build and assign shifts, create to-do lists, and communicate with other workers to more easily map out where and when work gets done.
PayrollWorkforce.com’s payroll system can simplify how you pay contractors. Along with your W-2 staff, the system will also automatically process payment for your 1099 workers based on hours worked and the terms of their contract. At the end of the year, Workforce.com will also provide you with all necessary 1099 forms, which your contractors will use to file their taxes.
Recordkeeping
Workforce.com keeps all contractor records organized in one place, helping you access everything in case of audits or compliance reviews. It stores contracts, timesheets, IRS forms, and other important documents related to each project, helping you stay on top of everything and remain compliant.
Ready to improve how you manage contractor compliance? Book a demo and see how Workforce.com can help.
