How Do You Pay Your Hired Staff When You Outsource?
Selecting a bidder from a freelance jobsite and giving them the details of the job assignment is one thing, paying them is another. Given the nature of the process, it is very important that there is security for both you and the provider – the provider has to be protected that he or she gets the payment when the work is delivered and you have to be protected that you get the job done. It is easy to say that you should not pay till you get your job done, but why should the freelance worker trust you on that? There are some middle paths that can be taken here.
The following are the various methods of payment that employers who outsource their jobs use.
Escrow
This is the best and the safest method to use. When you select a bidder from a freelance jobsite, you transfer the bid amount to an escrow account with the jobsite itself. This money is not released to the employee till the time the work is completed and you decide to release it after ensuring that the work is up to your requirements. You can have as many escrow accounts as you want, which are needed if you are hiring different professionals. For the employees, the escrow is a guarantee that you have the money to pay once the work is done.
They will be able to work with better peace of mind and will be confident that they will be paid when the job is done.
There is one more benefit of the escrow system. When you put money in escrow, the deal is sealed with the employee and this is confirmed with the jobsite. In case of any dispute, the jobsite will arbitrate and come to a solution. But the jobsite will arbitrate only if an escrow was made. In that way, there is more peace of mind for both parties involved.
Escrow is definitely recommended if you are going through an outsourcing website.
After-Completion Payment
If your project is not quite expensive and if the worker knows you, then probably they would agree to be paid after completion. Because of the prospect of earning money, most professionals do agree to be paid after completion of a project. Such payments are through PayPal, Moneybookers or even through electronic checks, wire transfers or transfer of funds through the jobsite account itself.
The problem here is that the trust factor does not exist because you haven't showed them the money yet. They may not be too keen on working because of their insecurity.
Another point is that when you pay outside the jobsite, you do not get a chance to review each other. This can be an impediment if you are trying to build some goodwill on the site for future outsourcing needs. This method is definitely not recommended.