Setting up a non-employee business

04 July, 2019
By G-Team in Human Resource

Setting Up A Non-Employee Business

With the rising gig economy, would it be possible for a company to have zero employees? For New Jersey-based company, Tools4Wisdom, a company that produces calendar planners, it seems to be highly profitable.

Laszlo Nadler, the founder of Tools4Wisdom, managed to generate an annual revenue of USD2 million with just zero employees.

If that sounds impossible, here are some tips to run a non-employee business.

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Setting up a non-employee business

02 July, 2019
By Dharshini in Human Resource

Setting Up A Non-Employee Business

With the rising gig economy, would it be possible for a company to have zero employees? For New Jersey-based company, Tools4Wisdom, a company that produces calendar planners, it seems to be highly profitable.

Laszlo Nadler, the founder of Tools4Wisdom, managed to generate an annual revenue of USD2 million with just zero employees.

If that sounds impossible, here are some tips to run a non-employee business.

1. Leverage on your connections

Starting up a non-employee business does not necessarily mean that you have to work alone. It simply means that you do not have any full time employees to be responsible for. At the same time, it also means leveraging on the skills and expertise of freelancers and contractors.

Reach out to the connections that you have and make your requests open-ended. Instead of asking, “Do you have any freelance designers?”, ask, “Could you recommend any creative website designers or connect me with someone who specialises in that field?”

2. Network whenever you can

Scrolling through endless pages of freelancers websites will not get you the candidate that you want. Likewise, advertising your services on an online website will not bring in new projects every month. The key here is to network - at every business or industry event. It might not be one that is relevant to your business but that business owner you were talking to that night might very well know the right industry players to help your business grow.

networking

3. Start small on projects

It might not bring in the revenue but focusing on getting a small project done will help to build your reputation. And once that reputation has been established in the market, the bigger projects are likely to start coming in.

4. Have a plan B when working with contractors

Hiring a freelancer or contractor can be difficult to manage. Just because they have the right skill sets does not necessarily mean that you will work well with them. Instead, set clear expectations and timelines so that these freelancers and contractors are aware of the work that they need to complete. Additionally, bearing in mind that these people are non-permanent employees, it is also good to have a plan B. It could be finishing the project yourself or calling another freelancer that you have already screened.

Setting up a company with non-existent employees is possible. It simply requires an investment of time, effort, patience and people management skills. Who knows, a zero employee company might be the future of work.

Pros and Cons of engaging a Part-Time or Contract employee

27 June, 2019
By G-Team in Human Resource

Pros and Cons of Engaging A Part-Time or Contract Employee

The gig economy in Singapore has been rapidly growing in recent years. Traditionally, fresh graduates would rush to look for full time jobs even before their graduation. However, survey results show that a higher proportion of these graduates are taking on temporary jobs instead of permanent full-time jobs after university.

According to survey results from the 2017 Graduate Employment Survey, which polled close to 11,000 fresh graduates from the three local universities (National University of Singapore, Nanyang Technological University and Singapore Management University), 80.2 per cent of graduates who found work within half a year of finishing their examinations secured permanent full-time jobs. This is lower than the figure reported in 2015, which was 83.1 per cent.

The rise of the gig economy is also largely attributed to the increase in demand for these gig workers as well. Companies today are actively hiring freelancers due to the shift in nature of work. Certain industries such as food delivery services rely heavily on freelancers. Additionally, some departments within large organisations are very project-focused. Hiring freelancers help to reduce the human capital cost given that they are only hired when there is a spike in projects with tight deadlines.

However, while part-timers or freelancers can help to address the labour issue for short-term projects, there are certain cons to relying on these gig workers instead of hiring a full-time employee.

Read Article 

Pros and Cons of engaging a part-time or contract employee

25 June, 2019
By Dharshini in Human Resource

Pros and Cons of Engaging A Part-Time or Contract Employee

The gig economy in Singapore has been rapidly growing in recent years. Traditionally, fresh graduates would rush to look for full time jobs even before their graduation. However, survey results show that a higher proportion of these graduates are taking on temporary jobs instead of permanent full-time jobs after university.

According to survey results from the 2017 Graduate Employment Survey, which polled close to 11,000 fresh graduates from the three local universities (National University of Singapore, Nanyang Technological University and Singapore Management University), 80.2 per cent of graduates who found work within half a year of finishing their examinations secured permanent full-time jobs. This is lower than the figure reported in 2015, which was 83.1 per cent.

The rise of the gig economy is also largely attributed to the increase in demand for these gig workers as well. Companies today are actively hiring freelancers due to the shift in nature of work. Certain industries such as food delivery services rely heavily on freelancers. Additionally, some departments within large organisations are very project-focused. Hiring freelancers help to reduce the human capital cost given that they are only hired when there is a spike in projects with tight deadlines.

However, while part-timers or freelancers can help to address the labour issue for short-term projects, there are certain cons to relying on these gig workers instead of hiring a full-time employee.


1. You only pay them when you have a job that needs to be done

When you hire a full-time employee, you still have to pay them their full-time wage even if there is insufficient work to keep them occupied for the full working hours. On the other hand, part-timers or contract employees tend to be paid by the hour. Additionally, when the workload dwindles, there is no pressure to retrench them. Instead, you may simply end their contract term.

2. There is no need to pay CPF or provide employee benefits

Employers are obliged to contribute the employer's portion of CPF to the employee in addition to their monthly salaries. Additionally, employers are obliged to bear the cost of any benefits, for instance medical insurance, paid annual leave, claims reimbursements and so on. In the case of a part-timer or contract employee, employers are not obliged to do so.

3. Employers do not have control over how gig workers work

For a full-timer employee, they still have to turn up for work whether they like it or not. This then makes it possible for the manager to control and delegate tasks to get things done. However, part-timers or contract employees might work offsite at times, leaving employees almost no control over the work that they do. Additionally, given that these gig workers are not subjected to performance review or promotional grading, there is no "incentive" for them to produce quality work.

4. These gig workers are not integrated into the company culture

Part-timers and contractors come and go. This can then create a cold and incohesive company culture, whereby everyone simply focuses on their own work. In the long run, this may also affect the full-time employees motivational and productivity levels as there is no sense of belonging to the company.

There is no right or wrong to engaging part-timers or contract employees for your organisation. On one hand, they are short-term solutions to projects that have tight deadlines and help to reduce labour costs as well. However, it might be worthwhile to note that if time is require to train each time a new part-timer or contract employees comes in. As such, it might be more cost effective to invest in a full-time employee.