A hot topic since 2017, open talent includes platforms, gig economy planning and AI. Open talent not only defines a way of working but highlights the shift in human behaviour as we move into the fourth industrial revolution.
Approximately 126 billion USD was spent in the global open talent economy in 2018.
What is new about this fourth industrial revolution is that we are increasingly defining work on an output basis which makes flexibility more attractive than employer-employee models.
An ‘output based’ contract is an agreement between a customer and a supplier, which creates a relationship for the delivery of services or products. The driving force behind the contract is that it focuses on what the deliverables are in business terms rather than how they should be delivered.
In the United Kingdom regulations are shifting though and freelance contractors are at risk of IR35 if they don’t start writing proposals.
The changes to the off-payroll rules (often termed ‘IR35’) are now nine months away.
This means that many who are starting new projects now will potentially be looking at a new engagement or extending a project around Q1 2021.
Much has been said about the day-to-day relationship that is set out between supplier and client as determining status. Further, the actual agreement is important and should include clauses referring to direction and control, mutuality of obligation and the unfettered right of substitution.
The team at 6prog agree with this. It’s all good solid case law and is reiterated by IPSE’s Andy Chamberlain, Contractor Calculator’s Dave Chaplin and more.
IR35 is shorthand for the UK tax legislation that is designed to identify contractors and businesses who are avoiding paying the appropriate tax by working as ‘disguised’ employees; or, are engaging workers on a self-employed basis to ‘disguise’ their true employment status.
Interestingly Qdos Contractor’s Status Review shows 87% of contracts assessed were deemed outside IR35.
I want you to consider how to start your client relationships in the right way from the beginning.
What I am referring to is a shift in how you use recruitment agencies and niche consultancies (typically majority freelance driven).
Currently most projects start with a job advert, a cv and an interview. How does this sound to you? A bit like employment? That’s not good.
I recommend using proposals and business profiles instead. I recommend building a network of clients/suppliers on an ongoing basis as part of your business interests. (You have one already, called Linkedin).
Taking these actions will save you time (and money if you use 6prog). Not only that it will start your relationships in the right manner so that there is no indication of an employer-employee relationship. It’s a simple change in your working model that can help both parties AND put you a step ahead of the competition.
Want to have the pick of the talent? Who wouldn’t!
What is interesting is that IR35 (and AB5 in California) are at odds with the way the future of work is being created by us. What we want is a flexible work model that allows us to shape and grow teams working effectively and collaboratively.
Let’s create the future of work to all our benefit. It’s our future after all. Reach out to the team at
www.6prog.com who can help guide your business to holding the right starting relationship with clients and suppliers so that when you are in the ‘day-to-day’ there are no missed expectations and no nasty investigations by the authorities
Author Andy Barnes of 6prog.com
6prog was started by friends from Brighton, UK and Los Angeles, USA. We had all experienced recruiting and being recruited and felt that these tasks would benefit from a single solution called 6prog: The fastest and most cost effective contract engagement process.