Are you still employed the same old boring way?
The future of work will revolve around the concept of working for one person and being paid by another. There will be little or no difference between a traditional employee and a contractor – both will be employed under a contact of employment that states what they do and what they get in return.
What will change in the future is how those employees and contractors are paid.
They will not have to be paid by their employing entity, rather companies will outsource to payroll and salary management companies.
With the technology that’s here already, and coming, and the fact that the banks have to provide instant pay by the end of the year, people could be employed by one entity and paid by another with minimal lag.
They can be employed under a contingent workforce contractor contract but can be paid in accordance with what the contract states, e.g., they can be on a fixed monthly salary with holidays, sick leave and even redundancy built in, but the onus of the payroll, taxes and insurances payments is that of the salary management company not the employer.
Or they can pay over a daily rate taking into account all of the above within the daily rate, the employer pays over the full amount including all the on costs and the management company takes care of the rest. Leaving both the company (employer) and the individual (employee) the flexibility and the freedom they would like to have in the ‘New World of Work’
The individual can then look at legally structuring how they deal with the income to maximise his or her take home pay and superannuation in accordance with the local laws. This is otherwise known as salary management.
Today and in the future People will want more control over their finance and income and using a salary management company to collect their funds, whether they are contractors or employees, allows them to maximise their net income plus have a team of qualified people on hand to provide up to date superannuation, financial and loan advice helping them to maximise the use of their income adding further freedom to their total financial control of their pay funds.
This can be used by the employer to provide an alternative pay mechanism that adds a lot of value to the individual employee with minimal cost to the employer. We refer to this as Play Packets not Pay Packets.
Everyone wins and it’s what the ‘New World of Work’ is looking for: a total mind shift in how individuals are employed. Yet the loyalty and employer branding remains strong because the employer is actually giving more benefits than they would be able to if they were employing the individual directly, thanks to the salary management and packaging benefits they can offer by using a salary management company.
Finally, this can be done on a global scale. You could work anywhere in the world, but be paid and managed somewhere else, as long as all the tax laws are followed then no one will have an issue.
The mindset at the moment is, that if you are employed, you are paid by the employing entity. Sometimes the pay roll service is outsourced, but the result is the same, you are paid on regular basis, a regular amount with no deviation… this mindset is and will change…
In essence, the ‘New World of Work’ is simply a mindset restart. Opening your mind, and your business, up to the opportunities and choosing to drive the bus of innovation… rather than chasing after it once it’s already left.
Download Pendragon’s ‘New World of Work’ e-book to discover more.