Worker classification is anything but simple, and the effects can have a greater impact than you may think. Classification affects your workers’ schedules, how they do their jobs, which tasks they perform, and much more.
At Bluecrew, we have made the decision that all of our Crew Members should be classified as full W-2 employees of Bluecrew. This is to protect our workers - we aim to act in their best interest every day - and to provide our clients with a higher-quality workforce. But there are additional benefits as well.
Read on to learn more about why staffing with W-2 workers can be a big advantage for employers - or click here to download a full guide to the impact worker classification can have on your business.
Simple answer: quality. Studies show that hourly workers would rather be W-2 employees than 1099 contractors. So why would the best workers settle for less?
The benefits that come with W-2 work can help attract top talent. Workers want to be guaranteed a minimum wage, protected by workers’ comp and liability insurance, and have access to benefits like health insurance. In fact, nearly three-fourths of hourly workers would rather be a W-2 employee than a 1099 contractor. When you’re looking for quality, reliable team members, W-2 is the way to go.
Employers have far more control over W-2 workers’ actions and schedules. When working with 1099 contractors, you can’t set defined schedules or give instructions for exactly how you want tasks performed. For shift work or jobs where you want your team to follow a standard process, it’s imperative to use W-2 workers.
In addition, W-2 status makes life much simpler for employers - there is far less stress about whether or not your workers have the appropriate insurance and protections. Misclassification can also be a big burden - between 10 and 20 percent of employers misclassify at least one worker as an independent contractor. That type of misclassification leaves employers open to significant financial consequences and should be avoided at all costs.
The bottom line is that W-2 workers are higher quality, more productive, and much less risky than their 1099 counterparts. And when it’s time to staff your hourly team, the reliability of a flexible W-2 workforce offers benefits that simply can’t be achieved with 1099 contractors.
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