Episode 12: How to evaluate an FMS, and the difference between IC and AOR
What should enterprises look for in a freelancer management system? Ernesto covers visibility, user experience, audit trails, sourcing, security, payments, classification, and the risk allocation difference between direct IC engagement and an Agent of Record. General information only; not legal or tax advice.
Episode 12: How to evaluate an FMS, and the difference between IC and AOR
What should enterprises look for in a freelancer management system? Ernesto covers visibility, user experience, audit trails, sourcing, security, payments, classification, and the risk allocation difference between direct IC engagement and an Agent of Record. General information only; not legal or tax advice.
Episode 12: How to evaluate an FMS, and the difference between IC and AOR
What should enterprises look for in a freelancer management system? Ernesto covers visibility, user experience, audit trails, sourcing, security, payments, classification, and the risk allocation difference between direct IC engagement and an Agent of Record. General information only; not legal or tax advice.
Key insights
An FMS should create one source of visibility and control for the independent contractor population
Purpose-built workflows improve the experience for contractors and hiring managers
Audit trails should show how, why, and where each worker was classified
Evaluate compliance, security, payments, visibility, control, and access to additional talent
Ask whether the provider can act as Agent of Record and make indemnification protection available
Direct IC engagement leaves classification decisions and related risk with the company
Under an AOR model, the provider performs classification and can add a layer of indemnification protection
Featured recourses
Explore more of Ernesto’s content: Build better Contingent Workforce Programs
Newsletter: The classification problem nobody takes seriously, until the audit arrives
Key insights
An FMS should create one source of visibility and control for the independent contractor population
Purpose-built workflows improve the experience for contractors and hiring managers
Audit trails should show how, why, and where each worker was classified
Evaluate compliance, security, payments, visibility, control, and access to additional talent
Ask whether the provider can act as Agent of Record and make indemnification protection available
Direct IC engagement leaves classification decisions and related risk with the company
Under an AOR model, the provider performs classification and can add a layer of indemnification protection
Featured recourses
Explore more of Ernesto’s content: Build better Contingent Workforce Programs
Newsletter: The classification problem nobody takes seriously, until the audit arrives
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