When working with freelancers, most organisations focus their efforts first on attracting the best talent, and then, on getting the best work out of them. However, firms with foresight know that there is yet another step to creating a successful freelancer strategy — that of inspiring loyalty and building a reliable pool of talent that they can turn to, time and again. Having a flawless payment process in place is a fantastic way of achieving this.
Most freelancers do not enjoy the luxury of knowing when (or if!) they will be paid. So companies that offer them this guarantee and peace of mind are bound to stand out in a crowded employer marketplace. But ensuring a flawless payment system is tough, when you are processing invoices manually. That’s exactly why you need an updated freelancer payment portal. A good payment portal, however, is not just for the benefit of your freelancers.
Let us give you 3 reasons why managing payments through an automated portal is great for your organisation too.
1) Save $300,000+ through automating payments
If your managers are handling invoice payments through spreadsheets or manual documents, you might be incurring extra costs. A report by Sterling Commerce (an IBM Company) stated that on an average, the cost of manual invoice processing is $30 (approx £23). Of course, this cost is subjective and depends on a number of internal company factors and the efficiency of Accounts Payable (AP) departments.
In addition to the Sterling Commerce report above, we did some of our own calculations into the impact outdated systems and processes can have on operational efficiencies and costs. We found that the typical company with 200+ freelancers wastes $300,000+ in payment processing costs.
This is an extremely hefty amount to begin with, and can quickly add up over time. Based on the same assumptions, a freelancer payment portal like TalentDesk.io can reduce such cost significantly and put a stop to such drastic waste and inefficiencies.
2) 34% less time spent on payment related admin tasks
It's not just the costs associated with invoice processing that can weigh heavy on your managers — consider the time and effort they spend on related tasks too. In order to process a payment, a manager needs to review the invoice, get it approved, mail it to the finance department, make the associated data entry into your accounting software, and perform audits. And let’s not forget the time spent in coordinating with each freelancer, dealing with follow ups and confirming the payments. The effort it involves is staggering.
A freelancer payment portal can ease this process to a great extent. TalentDesk.io, for instance, offers a single platform for freelancers to raise worksheets and expenses. Once these are approved, the system consolidates them all, and sends you just a single invoice to pay. After you make the payment, our portal distributes the correct amount to each individual freelancer. This frees up a massive chunk of time that your managers can then devote to growing your business. A report sponsored by SAP Concur, a mobilised expense management service, found that organisations that opt for an automated payment method spend 34% less time on administrative tasks related to invoice processing. They also enjoy productivity and efficiency savings of $14,953 per 1000 invoices processed.
3) Reduced risk of fraud
In a world where data breaches and cyber fraud are commonplace, data security has never been more important to the business world than it is right now. Even the world’s largest organisations that invest millions of dollars in data security still fall foul to cyber-attacks and invoice frauds.
Automated freelancer payment portals significantly reduce these risks. TalentDesk.io ensures you have complete control of your payments, every step of the way. For example, only after a task has been completed to satisfaction and duly approved by the relevant manager, does it proceed to the invoicing stage. Moreover, it allows you to add in a second layer to the approval process if you so choose. The portal also lets you schedule payments for a certain date — so even if a task is completed and approved before time, your project budget still remains on track. Given that the payment system is completely digitised, it leaves an audit trail, making invoices instantly trackable.
Talk to us about how we can help
If you haven’t done so already, now is the perfect time to take stock of your legacy systems and consider upgrading to a secure, streamlined freelancer payment portal. By taking advantage of the automated payments functionality offered by TalentDesk.io you’ll ensure that your organisation maintains a competitive edge with better time and cost savings, and more peace of mind.