Independent Contractors vs Employees: Who’s Right For Your Event?

Hosting a successful event or party requires meticulous planning and attention to detail. Whether you’re hosting a fundraising gala or a no-expense-spared wedding, choosing the right staff to ensure everything runs smoothly is crucial.

While trusting independent contractors with your events may seem like an attractive option, there are significant hazards involved. Keep reading as we examine the risks of hiring contractors and the benefits of working with The Party Staff, where every professional is a W2 employee.

Risks of Hiring Independent Contractors

Legal Compliance

One of the most significant risks of hiring independent contractors is the potential for misclassification. If misclassified, contractors may be considered employees under the law, leading to legal issues, tax liabilities, and potential penalties. Labor authorities and tax agencies closely scrutinize worker classification, and misclassification can result in fines and back payments of wages and benefits.

Lack of Control

Independent contractors maintain more control over how they perform their work, which can lead to challenges in consistency and adherence to event standards. As a result, you may have less power over the contractor’s methods, quality of work, and adherence to deadlines.

Limited Availability and Reliability

Contractors often work with multiple clients and may have other commitments, making their availability unpredictable. This can create challenges in securing their services for specific event dates, leading to potential last-minute cancellations or understaffing.

Safety and Insurance
Independent contractors might not receive the same insurance coverage as W2 employees. In the case of accidents or injuries during an event, liability and workers’ compensation concerns may arise, potentially leaving you, the event organizer, vulnerable to legal and financial consequences.

Training and Quality Assurance

Independent contractors may not receive the same level of training and supervision as W2 employees. This lack of consistent training and oversight can affect the overall quality of service they provide at your events.

Benefits of Working with The Party Staff

Trained and Reliable Staff

All our employees are W2 staff, extensively trained in event hospitality and customer service. Whether you need short-term staff fast, or a longer-term solution, our talent consistently delivers exceptional service to make any event a success.

Flexibility and Scalability

The Party Staff maintains a pool of talented and dedicated professionals, allowing us to scale our services according to your event’s size and requirements. We can handle everything from small gatherings to large corporate functions seamlessly.

Expertise and Specialization

Our W2 employees are experienced in various event roles, from bartenders and servers to event captains and coordinators. This expertise guarantees they can handle diverse event types, making your vision a satisfying reality.

Seamless Event Execution

With The Party Staff, you can focus on enjoying your event, knowing our skilled team will take care of everything from setup to cleanup. Our employees handle the logistics, leaving you stress-free and able to spend quality time with your guests.

Safety and Insurance

Our W2 employees are covered by workers’ compensation and liability insurance, providing an added layer of protection for both you and the staff during the event.

While the allure of hiring independent contractors may initially seem enticing, the risks associated with this approach are significant. To guarantee a flawless event or party, teaming up with a reputable staffing firm like The Party Staff, where all employees are W2 staff, is undoubtedly the smart choice.

With a team of experienced and dedicated professionals, our commitment to excellence ensures your event’s success while mitigating potential risks. Let us take care of your staffing challenges, while you focus on making memories that will last a lifetime!

Create unforgettable events, stress-free! Contact us today and say goodbye to worries about staff reliability and focus on creating cherished memories with your guests.

Share This:

Make a Splash With Our Summer Party Ideas at Your Next Special Event

With warmer weather and longer days, summertime is the perfect time to gather family, friends, and neighbors for memorable special events. From music festivals and weddings to fireworks displays and sporting events, there are endless opportunities to throw the summer party of your dreams!

At The Party Staff, our experienced professionals are equipped to handle every type of event under the sun. From setup to service, breakdown and cleanup—we do it all! So, if you’re planning an exciting summer event, check out our top party ideas to wow your guests!

5 Tips for Summer Party Success

Food

Offer a Variety of Refreshing Meal or Snack Options

Serve a diverse selection of light, refreshing dishes that are suitable for summer. Include salads, fresh fruits, grilled vegetables, and chilled appetizers. Consider dietary restrictions and offer vegetarian, vegan, and gluten-free options.

Incorporate BBQ or Grilling Stations

Set up BBQ or grilling stations to provide a fun and interactive dining experience. Offer grilled meats, seafood, and vegetarian options. Allow guests to customize their dishes with a variety of sauces, condiments, and toppings.

Drinks and Bar Service

Create Signature Summer Cocktails

Design a special drink menu with signature summer cocktails. Offer refreshing options like mojitos, margaritas, fruity spritzers, or mocktails. Include non-alcoholic choices and provide a selection of chilled beverages for hydration.

Offer a Self-Service Drink Station

Set up a self-service drink station with a variety of beverages, including infused water, lemonade, iced tea, and flavored soda. Provide an assortment of garnishes, ice, and drinkware, allowing guests to create their own refreshing drinks—silly straws and cocktail umbrellas are always a big hit!

Fun Activities

Organize Water Games or Sports

Incorporate water-themed activities to beat the summer heat. Arrange water balloon tosses, water gun fights, or slip and slide challenges. If space permits, set up inflatable water slides or create a mini water park area for kids.

Provide options for outdoor games like volleyball, badminton, cornhole, or frisbee. Encourage friendly competition by organizing tournaments or offering prizes for winners. Ensure there are shaded areas for spectators and those taking a break.

Decorations and Lights

Embrace a Tropical or Beach Theme

What’s a summer party without a classic beach theme? Use vibrant colors, tiki torches, palm leaves, and seashells to create a lively atmosphere. Hang string lights, lanterns, or fairy lights to add a magical touch when the sun goes down.

Set Up Chill-out Zones

Create cozy and comfortable lounge areas with cushions, hammocks, or bean bags. Provide shaded spots with umbrellas or canopies where guests can slip away and enjoy the ambiance.

Clean Up

Provide Ample Garbage and Recycling Bins

Strategically position garbage and recycling bins throughout the event area to encourage proper waste disposal. Clearly label the bins and consider having designated staff to monitor and empty them regularly.

Arrange for Post-Event Cleanup

Plan for efficient and timely cleanup after the event. Hire a professional cleaning crew through a hospitality staffing services provider like The Party Staff to ensure the venue is left clean and tidy.

By following these tips, you’ll create a fantastic summer special event that provides your guests with delicious food and drinks, engaging activities, and an atmosphere they’ll love. And the best part is, you can do it all without lifting a finger with the help of The Party Staff!

Sail Away to Paradise With The Party Staff

With experience and expertise in multiple industries, The Party Staff is highly qualified to deliver temporary and permanent special event staff for corporate and residential events. Every Party Staff consultant is a W2 employee covered with Workers’ Compensation and disability insurance for your protection. We specially select the perfect individuals and teams of staff based on your specific event requirements.

We can place people in positions such as:

  • Servers
  • Buffet Attendants
  • Bussers
  • Food Runners
  • Tray Passers
  • Dishwashers
  • Stewards
  • Housemen
  • Bartenders
  • Barbacks
  • And more!

Ready to let the good times roll at your special event this summer? Reach out to The Party Staff team today.

Share This:

Bored at Work? 3 Reasons to Try a Temp Job

Jobs are a necessary part of life. But do you dread the thought of a 9-5 office job, doing the same thing over and over again? You are not alone in that struggle!

But don’t fret, we have a positive solution for this common conundrum. You don’t have to decide between lifeless option A and soul-sucking option B – you can actually bring fun and vibrancy into your everyday job!

Working temp jobs for events and local establishments offers a world of entertaining and lively experiences that will last you a lifetime. But is temp work worth it? Absolutely, and here’s three reasons why.

You’ll Find Fun & Flexibility

Working the event circuit offers a smorgasbord of activities to guard against drab monotony.

  • You can serve drinks to high society celebrities at the Grammys® or Emmys® (yes, we staff those events).
  • Let’s say you’re more of a sports person – well, you are in luck! We are all fore our favorite professional golfers at the PGA Tour, and we cheer loudly for jaw-dropping touchdowns at NFL games.
  • Maybe you have a little more southerner spice to your tastes– have no fear, we even hire porters for rodeos – yee-haw!
  • Or perhaps you have your eyes peeled to find ways to invest in community-based organizations; relief efforts are constantly on our radar. We send teams to supply food and other necessary items to towns impacted by forest fires and other natural disasters throughout the U.S.

Not only do we offer events of all kinds, but we provide flexible schedules. That means you can pick the shifts you want to work! No demanding, mandatory hours. You choose what suits you best. Maybe you’re paying your way through college – you can work the events that allow you to still make time for your studies and classes. Or maybe you have a steady job but could use the extra income. You can work the nights or weekends that fit into your calendar with everything you already have on your plate.

You’ll Earn Worthwhile Wages

You don’t have to twiddle your thumbs trying to figure out your next steps, career or otherwise. You can earn money right now by working events! Party Staff offers competitive compensation and bonuses. For example, if you refer a friend or family member and then work three full shifts, you will get $150. And, if you are a cook or dishwasher, you’ll receive $150 after you complete seven shifts with no cancellations. Showing up and doing the work really does pay off in the end!

You’ll Discover Direction

The beauty of temp work is that you gain experience in all shapes and sizes. And this, my friend, can be life-defining, especially when you are still attempting to figure out what you want to do with your life (trust us, we have all been there).

Maybe through setting up an event and connecting with people as a server, you realize you love the hospitality industry. You want to create events and experiences for individuals, celebrating momentous achievements and commemorating significant milestones. Perhaps you connect with organizations and individuals who are integral parts of a community and realize life in nonprofit work is for you. The possibilities are endless.

The truth is, you don’t know what you don’t know – but the more opportunities you take, the more you’ll gain clarity on what you want to do.

How do we make all this a reality? Well, we’ve been in the event industry for over 30 years and built relationships with our clients that have been in business just as long. In short, we love making lives better through memorable job experiences, all while having a grand old time. So why not give a temp job a try? You never know what opportunity is just around the corner.

Ready to get started? Find out more about our fun events and current openings here!

 

Related Articles

How Teamwork Makes the Dream Work, 30 Years and Counting

New Spaces & New Faces in Orange County and San Diego

The Memorable Moments of 2021

 

Share This:

Why Temporary Employees and a 70/30 Workforce Can Solve Your Hospitality Staffing Problems

There’s a lot of good news for businesses right now. Covid restrictions are being lifted as the general population becomes increasingly vaccinated, while the U.S. economy has surpassed its pre-pandemic size and consumer spending is surging.

There are some issues too though. Without doubt, the biggest issue for many businesses is a lack of staff. The Cedar House Sport Hotel is just one example that exemplifies the hospitality industry right now. The opportunity to do business is there, but it’s hard to take advantage of it without willing employees.

So what can you do? A solution we’ve been encouraging in hospitality staffing is a 70/30 workforce – 70% full-time employees and 30% contingency employees. This model comes with advantages, ranging from the ability to find more predisposed workers to the opportunity to transform how you run your business for a maximum return on investment.

The Market is Tough Right Now – But We Can Help

Let’s face it: the biggest problem you’re likely facing right now is finding staff. The 70/30 model is designed to do this first and foremost.

The Cedar House Sport Hotel isn’t alone. Companies all around the U.S. are finding it hard to hire, and that is especially the case in hospitality, where low-income employees are reluctant to return. This has been shown in the unemployment rate dropping dramatically from mid-2020, when the pandemic was out in full force. Now, unemployment levels are staying relatively steady. The number of people looking for work is staying the same, and the market for new full-time employees really isn’t there.

A 70/30 model gives you a more attainable goal. Rather than trying to find people who are hard to find (or, worst case scenario, simply aren’t out there), you can fill the gaps with contingent employees. This is especially possible in hospitality staffing where many people work multiple part-time or temporary jobs across different days and/or hours.

This is also where a staffing partner can help. At The Party Staff, we have been helping our partners embrace this 70/30 model by working with them to find the right workforce, both from our long-time and new staff. We’re not just providing you anyone either – we work with a team of true industry professionals who understand the industry and enjoy working in it. Our people are your people, and we want to help you.

It’s Not Quite Business As Usual

The job market isn’t the only thing that’s changed. In all likelihood, the pandemic has changed your business, and will continue to do so.

Yes, Covid restrictions have largely lifted, but things are different, especially for hospitality businesses. State by state and even county by county, there are varying restrictions and beliefs that are changing how businesses operate. That means staying nimble is vital.

A 70/30 model gives you the chance to scale as you need. If business is down due to new restrictions, a new pattern you’ve noticed, or even a community outbreak scare, you can reduce the number of contingent employees you have. If business suddenly goes up, then you can rely on a partner to quickly bring contingent employees on at a speed you couldn’t by hiring full-time staff yourself.

Reading this now, I’m sure you can identify some peaks and valleys you’re seeing in your business already. Contingent staff can help you scale for them appropriately. At The Party Staff, we pride ourselves on responding quickly to ensure your needs are being met, whether that means bringing more people on at speed or scaling down when it makes sense.

Contingent Employees Offer You Cost and Time Savings

The scalability of your business doesn’t just help you make money by bringing people on when you have more customers to serve – it also saves you money when you have fewer contingent employees on due to there being less people to serve. The cost and time savings go beyond that too, though.

Using contingent employees creates savings in the areas you’re no longer responsible for. Liability, workers’ compensation, insurance, vacation, sick pay, retirement, and more are either no longer applicable or in the hands of your partner. And while a good partner will keep you abreast of their policies, you’re no longer bogged down by the time and costs of these benefits. These can be serious savings too – according to the Bureau for Labor Statistics, benefits for private industry workers can make up 29.8% of total employer compensation costs.

An experienced partner, such as The Party Staff, will also find you significant savings in onboarding. The contingent staff you work with should already be experts in their industry and require minimal training to understand how your business might do things slightly differently. Your full-time employees will therefore be able to spend more of their time on their work too, alongside your new contingent staff.

As times remain somewhat uncertain, all businesses could do with cost and time savings. Utilizing a 70/30 model in conjunction with The Party Staff finds you those savings – as well as the workforce you need to serve your customers.

Are you having issues finding the staff you need? Reach out to us today to learn how we can partner with you to find you a 70/30 workforce that brings a tangible ROI.

 

Related Articles

Coming Out of COVID 19

The Party Staff Celebrates 30 Years of Hospitality Staffing Success!

Behind the Scenes with a Seasoned Employee: What Working for The Party Staff Could Mean for Your Future

Share This:

3 Realities of Using 1099 Labor for Your Events – and a Safer Alternative

A lot goes into planning a seamless event that will leave your guests ooo-ing and ahh-ing for weeks to come. Venue booked? Check. Invites sent? Check. Entertainment covered? Yep. The list goes on. But nothing can make or break the success of an event quite like the caliber of the hospitality staff you have on your team – the ones working all day and night to ensure your guests will look back on your event as nothing short of epic.

Finding short-term event staff who you can feel confident about can be tricky. While you may be tempted to turn to online platforms that promise to quickly connect you with workers in your area, buyer be warned, you may not be seeing the full picture. In many cases, workers who you connect with through gig platforms are 1099 workers, or independent contractors – and there are a few hard realities that companies who utilize 1099 labor need to be mindful of. We break it down below.

Reality #1: The government is cracking down on worker misclassification

With the rise of “gig workers” has come the rise of worker misclassification lawsuits. In fact, many state-wide studies have shown that anywhere between 10-20% of employers misclassify their workers (intentionally or not). Workers officially classified as “employees” (i.e. not independent contractors) are granted certain protections at a state and federal level – we’re talking guaranteed minimum wage, overtime pay, healthcare, all that important stuff. Because of these protections, misclassifying a worker as a contractor when they act as an “employee” can land businesses in some serious hot water.

New lawsuits are popping up every day highlighting the growing liability of working with independent contractors – and no two companies are more familiar with this recent buzz than California-based rideshare platforms Uber and Lyft. Because drivers on these platforms are technically classified as independent contractors, they’re not protected by overtime or workers’ compensation laws even though they work long days, have no control over their rates, and provide the sole service that the company profits from.

It can all feel like one big gray area, and to combat this, the IRS developed an official three-point test to determine if a worker should be classified as an independent contractor or an employee. Take a look:

  • Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
  • Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
  • Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Before we move on, it’s worth mentioning that some companies utilize gig platforms that offer both 1099 and W2 workers, only increasing the potential liability. In these arrangements, the business does not know what type of worker they will be getting before the day of the assignment. Even if only one worker is W2, it implicates guilt of misclassification with the other 1099 staff. If the business utilizing the gig platform is ever under government scrutiny for worker misclassification, the fact that they used both 1099 and W2 labor for the same job will raise red flags.

Reality 2: Misclassification could leave you on the hook for unpaid wages

As mentioned above, if the IRS finds that workers are misclassified as independent contractors under the three-point test, businesses could be on the hook for thousands in unpaid wages.

Thinking back to recent lawsuits against rideshare services, one driver even estimated that if he were paid the minimum wage and overtime per California’s labor laws, Uber would owe him upwards of $150,000 for his three years of service. In 2019, Uber Settled a $20-million class-action lawsuit to its drivers in California and Massachusetts. Yikes.

Reality #3: Navigating potential liability can be a minefield

There is one common enemy to all event planners – unknown variables. The idea that anything, big or small, could cause a domino reaction and ruin the evening. When working with independent contractors, unknown variables and the subsequent liabilities are an inherent risk. We break down a few common compliance concerns you should be mindful of below:

  • Tax liability: The risk of misclassification when engaging with independent contractors can leave your business liable for state and federal taxes, social security, disability, unemployment, and more.
  • Workplace injuries: Independent contractors are not covered by workers’ compensation and thus can leave you liable to pay any injuries they might incur on the job.
  • Liquor liability: If you’re engaging an independent contractor to serve alcohol at your event without liquor liability insurance, you could be held liable for any damages or injuries that arise because of the sale or service of alcohol.

An Alternative Solution

The truth is, while gig platforms might promise the world, the only thing businesses are guaranteed is a connection with a job seeker – well, and all of the potential liability that goes along with 1099 workers. If the realities above seem like a headache, you have other options.

When working with a short-term staffing provider for your event needs, like The Party Staff, you’re protected from all angles. Our talent is covered with full workers’ compensation insurance (it’s illegal to employ staff without this insurance), five million dollars in general liability insurance, and one million dollars in liquor liability insurance. We pay and administer all legally required payroll taxes, including social security, state disability, and unemployment, as well as state and federal taxes on behalf of our staff and clients. Plus, we carry one million dollars in employment practices liability insurance to further mitigate risk. Need staff ASAP? No problem – that’s what we’re good at. We have a network of seasoned hospitality pros we’ve worked with in the past who are ready to leave a stellar first impression.

You’re producing an epic event – make sure you have epic hospitality staff. Our honest event staffing solutions are fine-print free. You’ll always be protected, that’s our guarantee. Request a quote today!

 

 

Share This:

Behind the Scenes with a Seasoned Employee: What Working for The Party Staff Could Mean for Your Future

From the day that we opened our doors, we knew one thing to be certain: exceptional employees would make or break the success of our company. Providing so many services, and each one tailored to the unique specifications of every client or event, is no easy task. We’re grateful for our incredible team members that take on that challenge day in and day out.

So, what’s it like to spend every day on the job working in an exotic location, surrounded by new people? We sat down with long-time employee Robert G. to gain some insight on his experience as a Party Staff employee and what’s kept him with our team for over six years.

A Little About Robert

Robert applied to The Party Staff at the height of the recession. At the time, he owned his own catering company, but finding new clients was more difficult than ever and business was becoming scarce. That said, his heart was still in the service industry, and he began his tenure with us as a cook. With 15 years of catering experience and a degree from Corden Bleu Pasadena under his belt, Robert was more than qualified for the job. This begs the question: what about The Party Staff drew him to the role and has kept him with us for all of these years? Here’s what he shared with us.

Achieving Autonomy (& Happiness)

As previously mentioned, every day at The Party Staff is unique, and not just because each event that we staff is different. Party Staff employees are offered flexibility within their roles, both when it comes to their schedules and the responsibilities of their positions. For Robert, this has been one of the greatest benefits of the job. Every week, he’s able to choose his own work schedule, deciding which events he’d like to take on. Plus, outside of working solely as a cook, he has worked numerous other shifts in both the front and back of the house, sharpening new skillsets and challenging himself.

Today, work-life balance has become a game-changer for countless employees, regardless of their industry, with 73% of employees believing flexible work arrangements increase their on-the-job satisfaction. Unfortunately, nearly the exact same number of workers (72%) are unsatisfied with their current work-life balance, causing some to turn towards alternatives that offer more freedom.

From this, the gig economy has sprouted, drawing independent contractors to opt for contingent opportunities over the typical employment route. On the surface, this type of work seems beneficial on numerous fronts, but ultimately, it’s an unstable solution for a majority of professionals. At The Party Staff, we offer reliable, flexible employment for our team members, even providing benefits like 401(k), worker’s compensation, and insurance for eligible workers. As opposed to wishy-washy contracts, our combination of security and autonomy is one of the reasons that Robert values The Party Staff so much – his job is catered (no pun intended) to exactly what he needs to make life work.

 

Gaining Unparalleled Experience

Robert’s other favorite perk about working for The Party Staff is the extensive experience he’s gained. He’s been able to hone a variety of new skills, both through hands-on learning and through the professional development training courses that we offer our team members. From cooking to serving to bartending, these skill-development opportunities are paid and allow our employees to try out new skills or further develop their existing abilities. From one of these courses, Robert was even able to become a TIPS-certified bartender!

His experience extends beyond just the professional opportunities though – Robert also considers the personal experiences he’s had as a huge benefit. As a Party Staff employee, he’s in the thick of the action at once-in-a-lifetime events on a regular basis.

“I’ve been in California for the past 40 years and I’ve never seen some of these places,” said Robert. “Museums, halls, arenas; big events happening for hundreds or thousands of people! It feels incredible to be a part of something so huge.”

These exciting functions make for a unique work atmosphere – one that promotes fun and positivity for guests and employees alike. While Robert hasn’t personally worked them due to his location, examples of these experiences include the Waste Management Phoenix Open and the Primetime Emmy Awards, two major cultural events that we partner with annually.

Choosing a Hospitality Job That Works for You

Working extraordinary events with The Party Staff is about more than just a paycheck – it’s an incredible chance to further your career and broaden your horizons. Over the past 30 years, The Party Staff has provided hospitality workers for thousands of social functions and special events expanding across the entire West Coast. Robert is just one example of countless hard-working and trustworthy employees who’ve embraced the exceptional opportunities that working with a hospitality staffing service has to offer.

So, what are you waiting for? The next step in your career journey is just a click away – apply to your area Party Staff location today!

 

Related Articles

Behind the Scenes at the Waste Management Phoenix Open

Behind the Scenes at the Primetime Emmy Awards

The 5 Trends That Are Shaping the Restaurant Industry in 2019

 

Share This:

4 Ways the Gig Economy is Failing Its Workers

The “gig economy” is a buzzword that, in recent years, has taken the workforce by storm. With the popularity of ride-share apps like Uber and Lyft, which employ millions of independent contractors, along with major retailers, such as Amazon, supporting independent delivery drivers or task based work, a foray into contingent work may seem like a solid career move. The truth is, contract work isn’t nearly as glamorous as these  “platform provider” corporations make it out to be. Yes, the gig economy has its perks, but quite frankly, the benefits of employment far outweigh them. Don’t fall for the hype – here are the top 4 ways the gig economy is failing its workers.

1. Flexibility

Early supporters of the gig economy were drawn to the flexibility offered by freelance life. The independence that comes with contract work is still very appealing to individuals with responsibilities and commitments that interfere with a typical 9-to-5 schedule. But contingent work is far from the only way to achieve a solid work-life balance. There are plenty of full or part-time employment opportunities for workers who are seeking a more flexible schedule. There’s more to life than work, and whether you’re attending school or staying at home with your children, employment doesn’t have to mean sacrificing your priorities for a paycheck.

2. Benefits

That said, as a contractor, autonomy is just about the only benefit that you receive. State and local minimum wage rules apply only to employees, meaning contractors can possibly make less than that after considering hours worked or expenses incurred. As an employee, state and federal tax contributions for sick leave, social security, and unemployment are all handled on your behalf, shielding you from big tax “surprises” at year end. Additionally, companies are responsible for workers’ compensation coverage, a mandatory expense that contractors must handle on their own. Eligible employees can also obtain company benefits like health insurance, 401k match, and more.

On the other hand, even if gig businesses wanted to give benefits to their contractors – they can’t. Companies legally can’t offer contract workers benefits, and the few perks they can provide to their workers, such as discounted services, don’t come close in value. Furthermore, contractors must pay social security and Medicare taxes – 15.3% of their full income – while companies cover half of these taxes for employees. Not to mention, contractors don’t receive the reduced group health insurance rates, if eligible, offered to companies, often forcing them to pay higher individual premiums for the same coverage.

3. Professional Development Opportunities

As an independent contractor, you’re not guaranteed future opportunities. Without the support of an employer, workers must constantly hunt for new work and can run the risk of not being paid on time, or at all, by shifty clients. Competition for “gigs” can be fierce, leaving many contractors twiddling their thumbs, waiting for work to present itself. The gig economy business model depends on this to make sure there is enough labor supply to meet consumer demand. Contractors have far fewer opportunities for advancement – they can work in a position for months, or even years, without the role turning into a permanent position. Also, their pay is likely to remain stagnant and they remain at the mercy of platform providers lowering their pay rates at any time, for any reason.

Alternatively, companies are more likely to stay loyal to employees. Working with individuals on a consistent basis builds camaraderie between decision-makers and their colleagues, allowing them to develop deeper interpersonal relationships. Working in groups with other employees provides great opportunities for networking and friendships versus contracting alone. This opens employees up for raises and promotions, while reducing the likelihood that they’ll unexpectedly lose their job. Companies also offer paid training courses and programs, so their employees can learn or develop different skill sets. As an employee, you’re not just a cog in the machine – you’re a part of a team.

4. Liability

Possibly the largest reason that the gig economy falls short is due to the personal liability that contractors take on. While an employee would more likely be aware of major internal changes, in the gig economy, contractors likely have little idea what’s going on at an organization. If a company unexpectedly goes bankrupt, they could quickly be out of unpaid wages. Due to the limited relationship between most contractors and businesses, independent workers also put themselves at risk of being underpaid or taken advantage of. Even companies that seem the most trust-worthy have been accused of inadequately compensating their contractors. If you get injured on the job or need a paid sick day, you’re most likely on your own. You also may have issues collecting unemployment insurance, should the need arise, as employers pay into that benefit on your behalf as an employee – not as a contractor.

Take the Smart Route

To put it simply, the gig economy isn’t all it’s cracked up to be. And the numbers agree – an in-depth study completed by the Bureau of Labor Statistics found that only about 10% of American workers were employed by “alternative work arrangements” in 2017. Despite the narrative that contract work is the way of the future, it seems that employees aren’t quite ready to part with traditional employment quite yet.

Many venture capital-backed disruptors are blatantly skirting around labor laws, hoping to grow large enough to absorb lawsuits as they take advantage of less expensive contract labor. Luckily, many states are taking preventative measures to avoid this in the future. In California, lawmakers recently passed an independent contractor test known as an “ABC” test. It targets entities using their workforce to deliver company goods and is used to determine whether an individual is legally an employee or a contractor.

Reap all of the benefits of employment without the stress that comes with contract work. Here at The Party Staff, we have a variety of flexible opportunities for hospitality workers, in addition to benefits like 401k match, health insurance, and paid training classes for eligible employees. Learn more about what a career with The Party Staff could mean for you.

Related Articles

Behind the Scenes at the Primetime Emmy Awards

The 3 Keys to Providing an Unbeatable Guest Experience

Part-Time Events: Your Key to Stellar Work-Life Balance

Share This: