How your company classifies its workers is an important factor that many managers don’t think about every day. And yet, every day it matters. The differences between 1099 contractors and full W-2 employees are drastic and can have a significant impact.
At Bluecrew, we’re proud that 100% of our hourly workforce is made up of W-2 employees who have access to all of the protections and benefits that accompany W-2 status. We are passionate about the fact that W-2 classification is the right choice for the types of positions we staff, like warehouse associates, forklift operators, hospitality staff, and other types of hourly labor.
What is it that makes worker classification important? There are two primary reasons that we focus on W-2 hiring.
It’s much easier to recruit high-quality workers when you offer W-2 worker classification. Workers truly want the protections and benefits that W-2 status provides, like a guaranteed minimum wage, workers’ compensation coverage, sick pay, health insurance, and more. They know they deserve those benefits and will seek out jobs that provide them. In addition, W-2 workers are more engaged at work and less likely to have frequent turnover, which creates a more productive and happy work environment.
There are some significant risks associated with misclassifying employees. Especially as states have started cracking down on worker misclassification, there is risk for employers - and co-employers - who rely on a 1099 workforce. We prefer to protect our workers, our company, and our clients by providing every Bluecrew Crew Member with W-2 status.
However, every business is different and has different needs. If you’re unsure what type of employees make the most sense for your company, you can get all of the details about worker classification (and how to decide what works for you) by downloading our worker classification guide here.
If you’re already familiar with the differences and just need a simple way to determine which type of talent to use, this simple checklist can help you decide what type of workers are the right fit for your positions:
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