• Events
  • Marketplace
  • Resources
  • Press Releases
  • Business Directory
  • Advertise
  • About Us
  • Contact
  • Submit to Allwork.Space
Wednesday, March 22, 2023
Allwork.Space
The FUTURE OF WORK® since 2003
Find A Flexible Office Here
  • All Topics
    • Business
    • Biophilic Design
    • Career Growth
    • Coliving
    • Collaboration
    • Coworking
    • CRE
    • DE&I
    • Digital Nomads
    • Future of Work
    • Home Office
    • Human Resources (HR)
    • Hybrid Work
    • Investment
    • Leadership
    • Marketing
    • Mental Health
    • Mergers & Acquisitions
    • Office Furniture
    • Productivity
    • PropTech
    • Remote Work
    • Self-care
    • SMBs
    • Social Impact
    • Space-as-a-Service
    • Technology
    • Virtual Office
    • Work-life Balance
    • Workforce
    • Workplace Design
    • Workplace Wellness
  • News
  • Business
    The Million-Dollar Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Disney’s Imagination Has Failed

    Disney’s Imagination Has Failed

    Can COVID Booster Shots Save Your Business?

    Can COVID Booster Shots Save Your Business? 

    Three Culture-Building Steps To Create A World-Class Company

    Three Culture-Building Steps To Create A World-Class Company

    How To Manage Partnership Risks In The Future Of Work

    How To Manage Partnership Risks In The Future Of Work

    What It Takes To Be A Hybrid LeaderWhat It Takes To Be A Hybrid Leader

    Dr. Gleb Tsipursky CEO Of Disaster Avoidance Experts | What It Takes To Be A Hybrid Leader

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

  • Work-life
    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Four Days Is Enough

    Four Days Is Enough

    The CDC’s Vision For The Future Of Worker Health

    The CDC’s Vision For The Future Of Worker Health

    Will Influencers Be The New Recruiters In The Future Of Work?

    Will Influencers Be The New Recruiters In The Future Of Work?

    Office Party Etiquette Matters All Year

    Office Party Etiquette Matters All Year

    Fun Promises Won’t Get Your Employees Back To The Office

    Fun Promises Won’t Get Your Employees Back To The Office

  • Tech
    Paving the Way for the Future of the Workplace With the Metaverse

    Paving the Way for the Future of the Workplace With the Metaverse

    What You Need To Know About Web3 And Finding Great Developers

    What You Need To Know About Web3 And Finding Great Developers

    The Price Of Remote Work? Your Privacy

    The Price Of Remote Work? Your Privacy

    Should You Put Your Job On AI-Pilot Mode?

    Should You Put Your Job On AI-Pilot Mode?

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    PETER MISCOVICH

    Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work

    AI Is Transforming The Future Of Industrial Work

    AI Is Transforming The Future Of Industrial Work

    Reimagining Offices for Hybrid Work

    Reimagining Offices for Hybrid Work: Frameable.com CEO on the Future of Virtual Offices

    How AI Can Help The Humans Within Human Resources

    HR Professionals Are Burned Out. Can A.I. Help?

  • Design
    The Powerful Impact Of Mood-boosting Office Designs

    The Powerful Impact Of Mood-boosting Office Designs

    What Can Workplace Design Practitioners Learn From Human Psychology?

    What Can Workplace Design Practitioners Learn From Human Psychology?

    Navigating The Complexity Of The Hybrid Workplace Design Process

    Navigating The Complexity Of The Hybrid Workplace Design Process

    The Gardens, 780 3rd Avenue, New York, NY 10017

    Coworking Spotlight: The Clearing in NYC Focuses on Hospitality

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    Create A Neurodiverse Friendly Office In Just One Minute

    Start Creating A Neurodiverse Friendly Office In Just One Minute

    Get Employee Buy-in To Make Office Redesigns Matter

    Get Employee Buy-in To Make Office Redesigns Matter

    How To Make Your Hybrid Office Accessible To All

    How To Make Your Hybrid Office Accessible To All

    Design Of Smart Office Spaces In The Post Pandemic World

    The Future Of Work Demands Futuristic Office Tech

  • Workforce
    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    Data-based Strategies to Manage Talent, Workplace Experience

    Data-based Strategies To Manage Talent, Workplace Experience

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Dispelling the False Narrative About Working Two Remote Jobs

    Dispelling the False Narrative About Working Two Remote Jobs

    4 Challenges in Navigating Remote Work Layoffs

    4 Challenges in Navigating Remote Work Layoffs

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Programming Strategies For A Happy Workplace

    Programming Strategies For A Happy Workplace

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

  • Coworking
    Top 3 Global Coworking Hotspots

    Top 3 Global Coworking Hotspots

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    Can WeWork Survive?

    Can WeWork Survive?

    Ambient Scenting Makes Sense For Coworking Management

    Ambient Scenting Makes Sense For Coworking Management

    Coworking Explained: What Is It And Why Should You Start?

    Coworking Explained: What Is It And Why Should You Start?

    The Most Important Coworking Perk Of 2023: Brain Breaks

    The Most Important Coworking Perk Of 2023: Brain Breaks

    6 Benefits Of Embracing AI In Your Coworking Space

    6 Benefits Of Embracing AI In Your Coworking Space

    Bond Collective Inaugural NYC Location Closing After Landlord Battle

    Bond Collective Inaugural NYC Location Closing After Landlord Battle

  • Marketing
    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    Instagram GenZ

    2023 Instagram Trends Reveal How To Market To Gen Z

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    Want Your Coworking Newsletter to Actually Convert

    Want Your Coworking Newsletter to Actually Convert? Start by Keeping It Simple, Fun, and Consistent

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    Want To Wow Coworking Members

    Want To “Wow” Coworking Members? It All Starts With (The Right) Insights

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    Everything You Need To Know About Google My Business, And How To Ace It

    Everything You Need To Know About Google My Business, And How To Ace It

  • CRE
    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    San Francisco Skyline

    The Future of Commercial Real Estate in San Francisco Doesn’t Look Good

    3 Things CRE Players Must Do To Stay Relevant In 2023

    2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    Meet Flex Space More Chaotic Cousin Gray Spaces

    Meet Flex Space’s More Chaotic Cousin: Gray Spaces

    The Future Of Our Offices And Our Planet Hinges On The Real Estate Industry Priorities

    The Future Of Our Offices — And Our Planet — Hinges On The Real Estate Industry’s Priorities

    JLL New Future Of Work Survey The Next Few Years Are Crucial For Commercial Real Estate (2)

    JLL’s New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate

    What Is The Impact Of Hybrid Working On Space Optimization

    What Is The Impact Of Hybrid Working On Space Optimization?

  • Podcast
  • Subscribe
  • All Topics
    • Business
    • Biophilic Design
    • Career Growth
    • Coliving
    • Collaboration
    • Coworking
    • CRE
    • DE&I
    • Digital Nomads
    • Future of Work
    • Home Office
    • Human Resources (HR)
    • Hybrid Work
    • Investment
    • Leadership
    • Marketing
    • Mental Health
    • Mergers & Acquisitions
    • Office Furniture
    • Productivity
    • PropTech
    • Remote Work
    • Self-care
    • SMBs
    • Social Impact
    • Space-as-a-Service
    • Technology
    • Virtual Office
    • Work-life Balance
    • Workforce
    • Workplace Design
    • Workplace Wellness
  • News
  • Business
    The Million-Dollar Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    The Million Dollar-Mistake Businesses In California Cannot Afford To Make: Compliance Deadline Approaching!

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    How Africa’s Economy will Harness Digital Tech in the Future of Work

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Flexible Work and Investment in ESG are Driving Profitability for this Global Brand

    Disney’s Imagination Has Failed

    Disney’s Imagination Has Failed

    Can COVID Booster Shots Save Your Business?

    Can COVID Booster Shots Save Your Business? 

    Three Culture-Building Steps To Create A World-Class Company

    Three Culture-Building Steps To Create A World-Class Company

    How To Manage Partnership Risks In The Future Of Work

    How To Manage Partnership Risks In The Future Of Work

    What It Takes To Be A Hybrid LeaderWhat It Takes To Be A Hybrid Leader

    Dr. Gleb Tsipursky CEO Of Disaster Avoidance Experts | What It Takes To Be A Hybrid Leader

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

    HR Leaders Share How New Salary Transparency Laws Have Changed Everything

  • Work-life
    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Build The Best Work Playlist: 8 Songs To Avoid And 10 To Blast

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Escape The Lingering Cold In These 7 Countries Perfect For Remote Work

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Say Goodbye Comfy Pants – 9 in 10 Companies Planning RTO This Year

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Remote Work Is Just E-Commerce Déjà Vu All Over Again

    Four Days Is Enough

    Four Days Is Enough

    The CDC’s Vision For The Future Of Worker Health

    The CDC’s Vision For The Future Of Worker Health

    Will Influencers Be The New Recruiters In The Future Of Work?

    Will Influencers Be The New Recruiters In The Future Of Work?

    Office Party Etiquette Matters All Year

    Office Party Etiquette Matters All Year

    Fun Promises Won’t Get Your Employees Back To The Office

    Fun Promises Won’t Get Your Employees Back To The Office

  • Tech
    Paving the Way for the Future of the Workplace With the Metaverse

    Paving the Way for the Future of the Workplace With the Metaverse

    What You Need To Know About Web3 And Finding Great Developers

    What You Need To Know About Web3 And Finding Great Developers

    The Price Of Remote Work? Your Privacy

    The Price Of Remote Work? Your Privacy

    Should You Put Your Job On AI-Pilot Mode?

    Should You Put Your Job On AI-Pilot Mode?

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    3 Steps To Build A Three-Dimensional Hybrid Workplace

    PETER MISCOVICH

    Peter Miscovich JLL Global Future Of Work Leader | The Hybrid Workplace Evolution: Unlocking The Future Of Work

    AI Is Transforming The Future Of Industrial Work

    AI Is Transforming The Future Of Industrial Work

    Reimagining Offices for Hybrid Work

    Reimagining Offices for Hybrid Work: Frameable.com CEO on the Future of Virtual Offices

    How AI Can Help The Humans Within Human Resources

    HR Professionals Are Burned Out. Can A.I. Help?

  • Design
    The Powerful Impact Of Mood-boosting Office Designs

    The Powerful Impact Of Mood-boosting Office Designs

    What Can Workplace Design Practitioners Learn From Human Psychology?

    What Can Workplace Design Practitioners Learn From Human Psychology?

    Navigating The Complexity Of The Hybrid Workplace Design Process

    Navigating The Complexity Of The Hybrid Workplace Design Process

    The Gardens, 780 3rd Avenue, New York, NY 10017

    Coworking Spotlight: The Clearing in NYC Focuses on Hospitality

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    The Secret Formula To Determine How (And How Often) Your Employees Should Work In The Office

    Create A Neurodiverse Friendly Office In Just One Minute

    Start Creating A Neurodiverse Friendly Office In Just One Minute

    Get Employee Buy-in To Make Office Redesigns Matter

    Get Employee Buy-in To Make Office Redesigns Matter

    How To Make Your Hybrid Office Accessible To All

    How To Make Your Hybrid Office Accessible To All

    Design Of Smart Office Spaces In The Post Pandemic World

    The Future Of Work Demands Futuristic Office Tech

  • Workforce
    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    New Study Shows Managers Are Changing Their Minds About The Hybrid Work Model

    Data-based Strategies to Manage Talent, Workplace Experience

    Data-based Strategies To Manage Talent, Workplace Experience

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Meditation Apps: Workplace Fad Or The Key To A Happier Workforce?

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Culturally Diverse Workforces Require Bespoke Mental Health Support

    Dispelling the False Narrative About Working Two Remote Jobs

    Dispelling the False Narrative About Working Two Remote Jobs

    4 Challenges in Navigating Remote Work Layoffs

    4 Challenges in Navigating Remote Work Layoffs

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Level Up To Reduce Stress — How to Convince Your Boss Video Games Belong At Work

    Programming Strategies For A Happy Workplace

    Programming Strategies For A Happy Workplace

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

    The Rise of Work From Home Jobs For Disabled Adults: A Powerful Solution For Inclusive Employment

  • Coworking
    Top 3 Global Coworking Hotspots

    Top 3 Global Coworking Hotspots

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    Will The Cascade Of Bank Collapses Break The Coworking Industry?

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    5 Top Software Picks To Revolutionize Your Coworking Space Management In 2023

    Can WeWork Survive?

    Can WeWork Survive?

    Ambient Scenting Makes Sense For Coworking Management

    Ambient Scenting Makes Sense For Coworking Management

    Coworking Explained: What Is It And Why Should You Start?

    Coworking Explained: What Is It And Why Should You Start?

    The Most Important Coworking Perk Of 2023: Brain Breaks

    The Most Important Coworking Perk Of 2023: Brain Breaks

    6 Benefits Of Embracing AI In Your Coworking Space

    6 Benefits Of Embracing AI In Your Coworking Space

    Bond Collective Inaugural NYC Location Closing After Landlord Battle

    Bond Collective Inaugural NYC Location Closing After Landlord Battle

  • Marketing
    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    8 Reasons Why Sponsored Content Is Worth The Investment For Your Brand

    Instagram GenZ

    2023 Instagram Trends Reveal How To Market To Gen Z

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    2023 Future Of Work Forecast: Focus Marketing On Values and Customer Experience, Not The Product

    Want Your Coworking Newsletter to Actually Convert

    Want Your Coworking Newsletter to Actually Convert? Start by Keeping It Simple, Fun, and Consistent

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    5 Pros Share How To Use Instagram To Grow Your Coworking Business

    Want To Wow Coworking Members

    Want To “Wow” Coworking Members? It All Starts With (The Right) Insights

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    6 Free, High-Quality Photo Sites To Level Up Your Marketing

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    The Creator Economy Is Dramatically Changing Marketing Practices, Here’s Why

    Everything You Need To Know About Google My Business, And How To Ace It

    Everything You Need To Know About Google My Business, And How To Ace It

  • CRE
    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    75% Of Business Leaders Lack Data Needed For Crucial CRE Decisions

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    Rapid Work Style Shifts Are Tanking Tax Revenues — Can City Planners Catch Up?

    San Francisco Skyline

    The Future of Commercial Real Estate in San Francisco Doesn’t Look Good

    3 Things CRE Players Must Do To Stay Relevant In 2023

    2023 Future Of Work Forecast: 3 Things CRE Players Must Do To Stay Relevant In 2023

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    The Office Space Sector Is Projected To See A Strong Fourth Quarter In 2022

    Meet Flex Space More Chaotic Cousin Gray Spaces

    Meet Flex Space’s More Chaotic Cousin: Gray Spaces

    The Future Of Our Offices And Our Planet Hinges On The Real Estate Industry Priorities

    The Future Of Our Offices — And Our Planet — Hinges On The Real Estate Industry’s Priorities

    JLL New Future Of Work Survey The Next Few Years Are Crucial For Commercial Real Estate (2)

    JLL’s New Future Of Work Survey: The Next Few Years Are Crucial For Commercial Real Estate

    What Is The Impact Of Hybrid Working On Space Optimization

    What Is The Impact Of Hybrid Working On Space Optimization?

  • Podcast
  • Subscribe
No Result
View All Result
Allwork.Space
No Result
View All Result
  • News
  • Business
  • Work-life
  • Tech
  • Design
  • Workforce
  • Coworking
  • Marketing
  • CRE
  • Podcast
  • Subscribe
Home Business

Future Of Work: What Is ‘Shadow HR’ And Why Does It Matter?

byCecilia Amador de San José
October 16, 2020
in Business
Reading Time: 7 mins read
A A
AWS ARTICLE IMAGES

One main shift in the business world today is the increasing number of remote, contractual, and independent workers.

Share on FacebookShare on TwitterShare to Network
Find a remote job with Flexjobs
  • One main shift in the business world today is the increasing number of remote, contractual, and independent workers.
  • While a more flexible workforce enables tasks to be completed faster, it comes with certain management challenges.
  • This has led to the rise of ‘shadow HR’, which refers to people conducting work for a company but who lack governance and control.

The coronavirus has dramatically changed the way people work and expect to work in the future. In some cases, the pandemic has only come to accelerate movements and shifts that were already taking place in some organizations. 

One main shift in the business world today is the increasing number of remote and independent workers. As organizations have experienced first-hand that working remotely can be effective and as workers realize that they can now work from anywhere, the number of remote workers is expected to increase exponentially over the next 5 years. 

While this shift offers various benefits, it also comes with its own set of challenges and risks. 

Advertise on Allwork.Space 2023

Allwork.Space spoke with Shahar Erez, CEO and co-founder of Stoke Talent, to talk about shadow HR, what it is, why it’s relevant today, and some of the risks associated with it. 

As more organizations lean on a more flexible and agile workforce, it’s imperative that they make sure that all business processes are being met to prevent compliance issues. Below are the highlights of our conversation. 

Allwork.Space: Let’s start with the basics – what exactly is ‘shadow HR’? Can you share with us where the term came from or how it was coined?

Shahar Erez: The term Shadow IT was coined during the cloud inception, when people were working throughout digital and IT transformation. It was sourced in organizations that were bypassing their internal IT department’s formal processes, policies and instructions and started sourcing IT services themselves.

Amazon Cloud started that way; most IT organizations objected to the usage of Amazon cloud, but engineering departments found it valuable and useful and bypassed formal IT. 

The motivation was clear — it enabled departments to take full ownership of their needs without needing to go through the slow tedious processes IT imposed. The downside was lack of control, overspend, application performance, data leakage, time wasted, etc.

Shadow HR is a very similar phenomenon, but with workers. 

The majority of HR departments in a company are focused on payroll employees, or W-2. But an estimated 20% of the workforce are people that are doing work for the company, but are not on its payroll — freelancers, independent contractors, service providers, gig workers. 

These are individuals doing work for the company, but they do not have the visibility, governance or control that traditional employees have.

When it comes to these ‘non-employees’, there is no single owner for this portion of workers. Ownership is split between finance, legal, HR, procurement and the hiring managers.

The result is that there is a growing number of these workers within the company that are out of compliance and governance.

In fact when interviewing CFOs and CEOs, many claim they do not have IC or freelancers at all, or maybe just a few, only to later find there is 2-3 times, even 5 times what they initially thought existed.

Shadow HR therefore refers to people conducting work for your company, in various forms, but who lack governance and control. The issue here is that they could potentially expose the company to risks.

Allwork.Space: Shadow HR is a relatively new concept, but why is it so important and relevant today? 

There are a few reasons why Shadow HR is becoming so important today. Here are a few of the reasons why I believe organizations need to start thinking about shadow HR.

  1. The exponential growth in the number of freelancers and the estimate that over 50% of the US job market will be freelancing within 5 years.
Shadow HR reflects huge changes in the way organizations hire and manage people.

2. As a consequence of the pandemic, many organizations are looking to gain more agility and keep up with the pace of change. These organizations are leaning on a more flexible workforce to accomplish these goals and scale their businesses. 

3. As the number of freelancers grows there are new legislations coming out, similar to AB5 in California and other states. This sets a new workforce classification rule to assure that independent contractors are correctly classified. 

4. The IRS is becoming more strict about freelance and independent contractors’ tax payments; it recently raised the penalty for a late 1099 form submission to up to $3M in fines per company. If organizations aren’t clear on who is working for them, they could potentially be submitting the wrong forms. 

Allwork.Space: To prevent shadow HR and potential risks on compliance, what are some strategies that organizations can implement to better manage remote and on-demand workers?

The main reason Shadow HR emerges is for the very similar reasons shadow IT emerged — internal processes and bureaucracy are too slow to keep up with market needs and pace of change. Leaders who want to get the organization moving and get things done are bypassing the complexities of the organizational processes.

The first thing organizations need to recognize is that they have shadow HR. While not a popular name, heads of finance, general counselors, and heads of operations need to assume there are people that are doing work for the company outside ‘standard’ or ‘traditional’ channels. 

The second thing is to recognize that if you want to have full visibility, the organization needs to make it simple for its leaders to follow the rules and be compliant. If leaders will need to spend hours every time they need a new freelancer or contractor, they will find a different, easier way around it. 

For example, if leaders or managers will need to spend 10-15 monthly hours approving invoices over email and updating numbers in a spreadsheet, they will find a simpler way to fulfill their talent needs. 

Heads of finance, legal procurement and operations, need to simplify and streamline the process. This can be easily accomplished by implementing technology that automates and connects the various elements of working with an alternative workforce. 

It’s all about making it simple and easy for managers to work within the boundaries that the organization has in place. 

Allwork.Space: What will happen if organizations fail to recognize and do something about Shadow HR?

  1. Late submission of 1099 can lead to significant IRS penalties that reach out to $3M in penalty. 
  2. Failing to have proper representation of legal agreements (NDA, IP ownership) slows down investment due diligence and increases legal costs.
  3. Not having all IP documents can lead to lawsuits down the line which will require hefty fines to settle.
  4. Not tracking ICs with system access and effective off boarding processes might result in independent contractors getting access to data they should not, which is violating GDPR and CCPA.
  5. Not tracking independent contractor engagement by state may lead to potential workforce misclassification, which is a heated area that leads to significant penalties. 
  6. Other, small consequences may include budget overages, data leakage, and significant manual overhead.
flexjobs promo
Tags: FUTURE OF WORK®
Cecilia Amador de San José

Cecilia Amador de San José

Cecilia Amador de San José, Senior Associate Editor of Allwork.Space, is based from wherever her laptop is. She enjoys traveling and visiting new flexible workspaces. If you'd like Ceci to check out your workspace, feel free to reach out to her at [email protected] (and send a plane ticket).

No Result
View All Result

How will work change in 2023?

Subscribe today to know what's changing tomorrow.

* indicates required
100% FREE. You can unsubscribe or manage your preferences at any time.
Advertise on Allwork.Space
swipedon
Grammarly Advertisement
Fiverr Ad

Latest News

Australians Are Unprepared For A Technology-Driven Future Of Work

Australians Are Unprepared For A Technology-Driven Future Of Work

March 21, 2023
Vallist Enters US Flexible Office Market

Vallist Enters US Flexible Office Market

March 21, 2023
NetChoice (Funded By Meta) Launches Litigation Hub

NetChoice (Funded By Meta) Launches Litigation Hub

March 21, 2023
Rideshare And Delivery Companies Question Department Of Labor’s Stance On Gig Workers

Rideshare And Delivery Companies Question Department Of Labor’s Stance On Gig Workers

March 20, 2023
Digital Nomads Are Leaving Portugal As Golden Visas End

Digital Nomads Are Leaving Portugal As Golden Visas End

March 20, 2023
Amazon Lays Off Another 9,000 Employees

Amazon Lays Off Another 9,000 Employees

March 20, 2023
The Meeting Room Of The Future

News and Features

Business

Tech

Marketing

Design

Work-life

CRE

Coworking

Workforce

Daily Digest

Podcast

Resources

Marketplace

Events

Press Releases

FlexSpace, Coworking
and Office Space

Los Angeles

New York

Chicago

Washington, D.C.

Houston

Dallas

Miami

San Francisco

Atlanta

Philadelphia

Seattle

Austin

Company

About Us

Submit to Allwork.Space

Contact

Advertise

FlexSpace

Terms Of Use

FlexSpace FAQs

Privacy Policy

Connect with Allwork.Space

Twitter

Linkedin

Facebook

Instagram

YouTube

Apple Podcasts

Spotify

Google Podcasts

©2022 Allwork.Space  l  Exploring the FUTURE OF WORK® since 2003.

No Result
View All Result
  • News
  • Podcasts
  • Events
  • Resources
  • Marketplace
  • Business Directory
  • Subscribe
  • Advertise
  • Find Space
  • About Us
  • Submit to Allwork.Space

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00