January 23rd, 2024 | Sterling
How to Control and Manage Your Gig Worker Onboarding Costs
The latest research from the CIPD (Chartered Institute of Personnel Development) suggests that just under half a million people in the UK work in the gig economy, but that only one-fifth of those see it as their main source of income. At the same time, gig businesses are facing the difficulty of having an insufficient pool of workers to respond to seasonal fluctuations in demand, with so many of those workers having multiple jobs. The challenge in terms of balancing the need to establish a sufficient pool of productive and profitable gig workers with the onboarding costs is why Sterling provides flexible options for gig clients enabling them to pass on upfront screening costs as and when there’s a need. Once you have attracted gig applicants, being able to onboard them as quickly and efficiently as possible, and therefore benefit from their contribution and productivity sooner, is critical for the success of your gig platform.
Furthermore, the nature of onboarding gig workers presents potential upfront risk in terms of cost, specifically that associated with mandatory background checks. Some cohorts of applicants onboarded may only generate very minimal revenue or might not even manage to get started on your platform at all, negatively impacting your return on investment (ROI).
Background Check Cost Savings and Increased ROI
Gig companies can control their costs and protect ROI by passing on the initial screening cost directly to the applicant, so that they pay for their background checks as part of an initial streamlined screening process. With Sterling’s easy-to-use Applicant Self-Pay tool, gig clients can minimise their cost exposure by passing on the upfront screening cost at the point of onboarding.
How Self-Pay Works
The applicant simply makes the payment at the end of the application process once they’ve provided the required information for the background checks to be conducted. Gig companies can choose to have the applicant pay upfront for all the background checks, or a portion of it, and are offered a range of payment options with currencies including Euros, Canadian Dollars, Great British Pounds, or US Dollars (USD). Accepted payment methods include all major credit or debit cards and Google Pay, processed as part of the mobile-responsive, intuitive, application process.
This straightforward cost containment strategy helps Sterling’s gig clients to manage and control their onboarding costs. It also provides opportunity to incentivise workforce productivity levels, retain talent, and protect profit, with applicants being reimbursed for the costs they’ve covered once they hit certain targets such as number of hours worked, or jobs accepted.
Clients have complete control and flexibility over when they want to pass screening costs on to an applicant, allowing them to easily align with changing business objectives, market conditions, and talent acquisition strategy, at point of onboarding.
Sterling supports gig clients around the world with services like Self-Pay and more. Learn more about how Sterling’s background checks and tech-enabled tools can help you to improve your workforce management and business success by contacting us.
This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.