Beyond 9-to-5: Payroll solutions for the gig economy

While you’ve had your head down in numbers for leave and compliance checks, the workforce has quietly changed, and it looks nothing like it did five years ago. You've got full-timers, part-timers, contractors, and people who fit none of those boxes. Welcome to the gig economy, where work is as diverse as the people doing it.

While stats on the gig economy for AU and NZ are thin, we know that about 1% of Australians have done work through a digital platform (think Upwork) in the last four weeks. Hop across the ditch to New Zealand, and you'll find one in 20 employed Kiwis are independent contractors, across every industry from marketing to construction. But here's the kicker – these numbers only scratch the surface.

The real magic of the digital gig economy? Australian and NZ companies can tap into talent from Tauranga to Timbuktu. The World Bank tells us that globally, gig work accounts for up to 12% of the labour market. And it's not slowing down - 66% of hiring managers (who have already hired independent talent) plan to ramp up their freelancer game in the next couple of years.

So how do you handle payments for someone who works 10 hours one week and 40 the next? Or someone based in Bali who wants to be paid in Bitcoin? For better or worse, these aren't hypothetical scenarios anymore – they're the new normal for your average payroll professional.

In this article, we're going to take a hard look at how payroll needs to adapt to keep up with the gig economy. We'll explore the challenges, the opportunities, and most importantly, how you can turn this shift into a win for your business. Let's get stuck in.

“Gig” used to mean something entirely unrelated to work, but now it's the buzzword that's got everyone from CEOs to payroll managers scratching their heads. But let's face it, the gig economy isn't some passing trend – it's a fundamental shift in how we work.

Technology has made it easier than ever for people to work from anywhere. Your next star employee could be sipping a flat white in Wellington or coding from a beach in Bali. Plus, more people are prioritising flexibility and work-life balance over the security of a permanent job.

For businesses, the gig economy offers a chance to tap into a global talent pool, scale up or down quickly, and bring in specialised skills for short-term projects. For the most part, it’s a win-win for everyone. 

But here's where it gets tricky for payroll. Your systems were probably set up for a world where everyone works set hours, gets paid on the same day, and has the same tax situation. Now you're dealing with a workforce that's as varied as a bag of party mix lollies.

It's payday. Your full-time employees are sorted, but what about Sarah, who worked 60 hours last week and 10 this week? Or Tom, who's been contracting from overseas and needs his pay in a different currency? Suddenly, your current payroll system seems a tad ill-equipped for these new scenarios.

First, there's the issue of variable payment schedules. Gig workers often don't align with your standard fortnightly pay runs. They might require weekly payments, or even daily in some cases. Your system should really be accommodating this flexibility to maintain worker satisfaction and retention.

Next, there is the variety of payment methods. While bank transfers are straightforward, what about requests for PayPal, cryptocurrency, or international wire transfers? Each option brings its own set of fees, processing times, and complexities.

Tax compliance is another hurdle. With workers spread across different countries, you're probably going to get stuck in a complex web of tax laws. Making sure you have accurate tax and reporting across multiple jurisdictions is key to avoiding potential legal and financial woes.

Benefits admin adds another layer of trickiness. Full-time employees typically receive a standard package, but gig workers' entitlements can vary widely from commissions to bonuses. Tracking eligibility and managing these differences needs a more nuanced approach.

Lastly, data security takes on increased importance. With sensitive information travelling around the world, you’re probably currently lacking protective measures for both your business and your workers.

In essence, most traditional payroll systems aren't built to handle the demands of today's workforce, and you will outgrow it. However, with the right strategies and tools, these challenges can become opportunities in the gig economy.

Let's look at the key parts of payroll systems that fit well and still stay transparent with the gig economy. These aren't small tweaks, but complete rethinks of how payroll works.

Quick pay processing 

Modern systems like Jemini offer same-day or next-day payments. For example, a freelance graphic designer finishing a project at 3 PM could have funds in their account by 9 AM the next day. This quick turnaround boosts worker satisfaction and helps you attract top talent.

Digital onboarding that keeps up

The thing about gig work, is, well, it’s a gig that comes and goes. The nature of the work means you’ll be hiring people relatively often, so you’ll want a solution like Jemini that offers quick and easy digital onboarding. The old way means dreaded paperwork and a bunch of approvals, but with Jemini, you’ll have the newbie in the system before your first coffee.

Time tracking that never sleeps

Gig workers make their own schedules, which, of course, may not fly with stubborn payroll systems. Jemini’s built-in time tracking tools make sure that every minute is worked and accounted for, whether your copywriter is Shakespearing at 2 p.m. or 2 a.m. That way, both your payroll and your gig workers stay on the same page at all times.

Cloud-based freedom

The other main appeal of gig work is that it can happen anywhere, and Jemini gets that. Our cloud-based system doesn't care if your workers are tapping away in a Bondi Beach café or a Queenstown lodge. Profiles, payslips, leave management – it's all there, ready to roll wherever there's internet.

Numbers that tell stories

Raw data is just noise – it’s the insights that tell the story. Want to know which gig workers are your secret weapons? Or how different job types stack up? Jemini can help you spot trends and make decisions that'll keep your business humming.

Giving workers control 

Self-service portals now offer features like instant pay requests, where workers can ask for a portion of their earned wages before payday. They can also split their pay between multiple accounts or even cryptocurrencies. This level of control is becoming a key factor in attracting and keeping great talent, whether they are gig workers or full-time. 

While these are all features that are relatively new, the key thing to look out for in a new payroll system is its ability to continually add new tools that match changing working conditions. While we can’t say for certain what new features will become an absolute necessity, you at least want to know that a payroll system like Jemini has the ability (and desire) to keep up with new needs.

Switching to a modern payroll system isn't just about keeping up with the times. It's more about giving your business a genuine edge. Let's break down the benefits:

Fewer mistakes, more time 

With automated calculations and data pulls, you'll see a significant drop in payroll errors. That means less time fixing mistakes and more time for strategic work. In our experience, our clients spend far less time on payroll processing after implementing Jemini.

Staying on the right side of the law 

Payroll laws change faster than Auckland weather, so a flexible system keeps you compliant without you having to stay glued to legal updates. Systems like Jemini will keep your compliance up-to-date and hassle-free. 

Workers who stick around 

When people get paid accurately and on time, they're happier. So it’s not rocket science – if you’re using a payroll system that meets the needs of your workers, they will stick around. 

Better business planning 

With real-time data at your fingertips, you can make smarter decisions about hiring and budgeting. You'll know exactly how much you're spending on labour, making it easier to plan for growth or tighten the belt when needed.

Competitive edge in hiring 

In a tight job market, your payroll system could be the deciding factor for top talent – seriously. Offering flexible payment options and quick processing can make you stand out from other employers. We've had clients tell us that their new payroll capabilities have been a selling point in job interviews.

The best part is that these benefits compound over time. As your team gets used to the new system, you'll likely see even more efficiency gains. And as you attract better talent, your whole business performance can improve.

Remember, though, that not all payroll systems are created equal. Look for one like Jemini that's constantly evolving to meet new challenges. The gig economy is just the start – who knows what the next big shift in work will be?

The gig economy isn't just knocking on the door – it's already made itself at home in our workplaces. Your payroll system needs to keep up, or you risk falling behind. But with the right tools, you can turn this challenge into a real opportunity.

Ready to make your payroll system work as hard as you do? Give Jemni a bell. We're not just payroll experts – we're your partners in figuring out this new world of work. Let's chat about how we can tailor a solution that fits your business like a glove.