Historically, the flooring industry has clung to the mindset of: “It’s always been this way,” despite the evolving aspirations of different generations. Having worked closely with several flooring retailers, I’ve witnessed their transformative efforts in embracing employee installers, serving as catalysts for change within their companies. While this approach may not be universally applicable, it has undoubtedly yielded positive outcomes for many businesses in various regions.
My challenge to flooring retailers is to explore avenues for integrating young talent entering the flooring industry as employees, providing essential support and training to help them develop their skill sets. When deciding whether to hire a new employee as a 1099 independent contractor or a W-2 employee, several factors come into play. Here are five reasons why it’s generally better to hire a new employee as a W-2 (not 1099):
- Control and supervision: W-2 employees are under the direct control and supervision of the employer. Employers can dictate the work hours, methods and other aspects of the job. For tasks that require close supervision, hiring W-2 employees allows for better control over the work process.
- Legal compliance: Classifying workers incorrectly (as independent contractors when they should be employees) can lead to legal and financial penalties. Misclassification of workers can result in back taxes, fines and legal liabilities for the employer. The IRS and Department of Labor have specific criteria to determine whether a worker should be classified as an employee or an independent contractor. Meeting these criteria is crucial for legal compliance.
- Employee benefits and protections: W-2 employees are entitled to various benefits and protections under employment laws, such as mini-mum wage, overtime pay, unemployment insurance, workers’ compensation and employer-sponsored benefits like health insurance, retirement plans and paid time off. Providing these benefits can help attract and retain talent, increase employee satisfaction and foster a sense of loyalty to the company.
- Long-term relationships: Hiring employees as W-2 workers often implies a long-term commitment. This commitment can foster loyalty, dedication and investment in the company’s success. Employees may be more inclined to align their goals with the company’s objectives, leading to increased productivity and organizational cohesion.
- Employee development and training: Employers typically invest in training and development programs for W-2 employees to enhance their skills and knowledge, thereby improving job performance and contributing to the overall growth of the company. Training and development opportunities can also improve employee morale, job satisfaction and retention rates, as employees feel valued and invested in their professional development. It’s imperative for our industry to adapt to this changing landscape and consider innovative approaches to meet the needs of emerging talent.
Kaye Whitener is director of operations for the Floor Covering Education Foundation, a non-profit organization dedicated to promoting recruitment, training and retention of floor covering installers. For more information, email kwhitener@fcef.org.
