Do You Know Where (or Who) Your Workers Are?
Today’s issue was guest-authored by MBO Partners’ Holly Kehrer, Vice President of Enterprise Solutions
Companies that hire remote workers are facing a new problem: Not knowing who and where their workers are.
For the past several years, traditional office jobs have transformed into flexible working arrangements that incorporate remote and hybrid work from start to end.
For the first time, organizations are, en masse, hiring, onboarding, and working with employees who have never once stepped foot in one of their offices. As a result, companies can have resources working for them without truly knowing where or even who they are.
If this sounds absurd, consider this: More often than not, remote workers can go months or even years in their roles without ever joining on-camera meetings with anyone in the company.
The results of this new reality have been mixed.
On the positive side, companies have access to talented people regardless of where they’re located, enabling them to do away with shouldering the costs of relocation.
On the other hand…
Overemployment, where a professional works two or more jobs, has become rampant, leading to concerns over whether employees or contingent workers are really dedicating the time they claim they are.
In purely remote setups where there are no substantive measures or controls to keep track of workers, it’s going to be a challenge for companies to find out whether the talent they’ve onboarded is working multiple jobs without their knowledge.
That’s not all, though.
Fake job seekers with fraudulent identities have been flooding U.S. companies that are hiring for remote positions. In these instances, fraudsters have turned to using AI tools to fabricate photo IDs, generate employment histories, and come up with answers during interviews.
This is a problem because once a worker with fraudulent credentials has been hired, this impostor could be in a positionto steal proprietary data, customer information, or even illegally acquire trade secrets.
What’s worse is that this isn’t a hypothetical—Fortune 500 companies have unwittingly hired thousands of software engineers who were actually North Korean citizens posing as American developers by using fake or stolen identities.
As a direct result, these companies have been scrambling to plug the vulnerabilities in their remote working policies in the wake of the discovery of this fraudulent scheme.
A Matter of Compliance
Knowing where your workers are and who they are isn’t important just because of the issues mentioned above.
Another reason why you should be able to account for the whereabouts of your workers has to do with regulatory compliance.
Hiring remote talent doesn’t end with onboarding and making sure workers are paid as there’s also legal and tax compliance that enterprises must prioritize.
Since both U.S. states and countries differ on how compensation is taxed and employees are classified, enterprises that lack sufficient knowledge on these matters could unwittingly break employment laws and regulations, leading to legal and compliance exposures.
Putting Relevant Policies in Place
In a previous “The Great Realization” issue, I emphasized the importance of creating policies when hiring digital nomads even though regulators at the state, federal, and global levels have yet to take substantive action on the onboarding of digital nomads who work remotely most, if not all the time.
The same point still stands and is highly relevant because whether enterprises like it or not, we now live in an era where working is no longer confined in office spaces (as much as many companies would like this to be the case), and thus, recruiting and onboarding will be conducted in digital spaces where identity fraud and fabrication can occur.
Put simply, in this new reality, policies and contingencies must be put in place to ensure that businesses know exactly who their workers are and where they are working from.
This can come in the form of identity verification solutions and frequent check-ins with remote employees.
(At MBO, we take the issue of fraudulent jobseekers and workers seriously. That’s why we’ve curated an anti-impersonation solution that was built specifically to safeguard us and our clients from fraudulent activities relating to talent engagement. Click this link if you want to learn more.)
Whatever form it takes, it’s important that enterprises put them in place as there’s no way of turning the clock back on the changing realities of talent engagement.
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Contingent Workforce / Talent Solutions Executive (MSP/VMS/EOR-AOR)
2moSome great points in here, Holly! I had a client share with me recently that they had identified over a dozen ICs who were "double dipping" for income by overstating billables on two simultaneous projects. The challenge is real.