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Staffing the Gaming Industry

CMMA Blog

Gaming is a complex ecosystem of creators and technology. Together, it’s shifting the passive way we formerly consumed entertainment towards interactivity and immersive realities. The gaming industry’s current value is $43 billion , which is more than the music and movie industries combined! While a select few brands have already capitalized on partnerships within gaming and esports, others haven’t quite realized the potential it has to offer. There’s a critical need for brands and development studios to improve the gaming workforce by hiring top talent, maintaining compliance, increasing employee satisfaction, and reducing turnover.

Scope of the Gaming Industry

Video game enthusiasts have evolved beyond the stereotype of lazy players in basements. A 2019 report from the Entertainment Software Association (ESA) notes that “75% of Americans have at least one gamer in their household, and 65% of American adults play video games.”

It’s no secret that the industry is massive and still growing. However, it can be challenging to understand the full scope of this vast ecosystem. An excellent place to start is in learning the key components and terminology.

  • Development studios are where video games are designed and created. 
  • Publishers provide funding for development studios, distribute games, and launch marketing campaigns – including hosting esports events. 
  • Emerging technology like streaming , VR, and 360-video are making entertainment interactive beyond traditional consoles. 
  • Combine all of the above components, and you get esports . In esports, video games are played competitively for a prize. These competitions are often broadcasted live from arenas or stadiums.

 

The Expansion of Esports

In 2019, CNN  projected that esport events and competitions would have 345 million viewers by the end of the year. It’s not a surprise either since esports teams, such as D.C.’s own Washington Justice , are rapidly earning fans in their home cities. Gaming arenas are even popping up across the U.S. to support the booming growth of gaming viewership.

 

Gaming arenas in the U.S. include:

 

1 Fusion Arena 2 Esports Stadium 3 HyperX

 

Impact of Gaming Across Brands

It’s evident that gaming and esports viewership is booming – now, let’s talk about the implications for brands and organizations.

Screen time is a hot commodity for brands since time spent playing (or watching others play) video games is at an all-time high. As a result, brands are struggling for market share to turn those viewers into customers. Non-endemic brands, like GEICO , consistently market towards gamers by partnering with publishers and streamers. Even luxury brands such as Louis Vuitton realize the advantage of getting involved. During the 2019 League of Legends World Championship in Paris, Louis Vuitton found a creative way to gain recognition by making a custom trophy case for The Summoner’s Cup  (see below), awarded to the winning Chinese FunPlus Phoenix team at the end of the competition.

Not only are brands embracing gaming industry technology, but so are government, medical, and educational institutions . Many have reaped the benefits of using 360-video and virtual reality (VR) for training. The implication of gaming across these industries increases the need to hire talent such as actors and engineers with experience in this new medium.

 

Competition and Compliance

The scope of the gaming industry is impressive, but success also brings significant challenges for both companies and the talent they employ. Tech giants like Apple, Google, and Amazon attract large applicant pools, especially as they try to expand within the industry . As a result, it’s challenging for smaller development studios and publishers to hire top candidates , especially with competition so fierce.

Turning to the workforce, creative and technical employees strive to keep the machine in motion. However, those employed in gaming work under immense pressure from external and internal expectations. Developers even have a specific term for periods of high stress, called “Crunch .” Leading up to fast-approaching game launch dates, patch releases, and the holidays, Crunch is a pervasive compliance issue in gaming. Crunch can be characterized by intense periods of overtime during the development process, in which the employee, or game developer, may or may not be adequately compensated by the employer. Some Crunch time is voluntary, but a majority of studios make it mandatory .

It’s no surprise that studios have high turnover and unaddressed complaints when the stress of burnout couples with HR issues . Luckily, change is on the horizon. Some work environments have improved since Gamergate  in 2014, and organizations like the International Game Developers Association  (IGDA) are moving efforts forward to make a change. Development studios are now partnering with staffing agencies to increase the scalability of the contingent workforce needed during busy months. 54% of developers now favor unionization , and this opinion is gaining more traction with organizations like Gamer’s Unite. 

 

Partnering for Success

There are many benefits for companies developing teams in the gaming industry to partner with staffing agencies for success. Staffing agencies, like TeamPeople, can be your one-stop-shop for recruiting, onboarding, management, payrolling, and scalability. They are uniquely equipped with agile resources, large talent databases, and knowledge of compliance and legality in the workforce. Studios and development teams are utilizing these outsourced talent solutions to increase sustainability and focus on creative development. 

 

Talent Retention and Satisfaction

Once companies build their ideal teams, it’s imperative to retain that workforce and reduce turnover. Providing employees with benefits coverage and professional development opportunities can increase productivity, satisfaction, and retention. Many staffing agencies already have agile resources like benefits packages and growth opportunities in place. For example, TeamPeople offers talent LinkedIn Learning as a professional development tool so they can explore further training . Hiring a diverse  group of employees can also increase retention, yet 28% of developers said that studios don’t invest anything in staff inclusion and diversity issues.

 

One-Stop Solution

The gaming industry’s existing success has exponential potential, but the ecosystem can’t sustain itself alone. TeamPeople can find the next graphic designer for your development team, or even staff your next marketing event with expert audio technicians. Working with a staffing partner like TeamPeople will lighten the workload for game developers and brands so they can focus on making impactful entertainment experiences.

 

Let’s improve the gaming workforce, starting with your team! We’ll work with you to find the perfect solution to enhance or grow your gaming department or studio. Reach out to learn more !

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Here’s What to Think About if You’re Expanding Your Business (And Therefore, Your Payroll)

CMMA Blog

If you’re planning to expand your business, one of your top priorities should be making sure you’re in position to classify and pay employees and independent contractors properly. This is especially important if you’re looking to hire people in any state without any red tape. Today, we’ll talk about what it takes to run payroll and when it’s helpful to engage a partner.

Doing Payroll Right

Since payroll is always a complex, high-stakes business, it’s worth investing anything required on the front end to make sure you do it right. Whether you train an in-house team or engage a partner, they need to be in position to classify correctly, stay on top of laws as they change, identify and respond to the different tax requirements, and have a system in place that allows the process to be simple, accurate, and fast. This helps you avoid future fines and legal battles.

Doing it right means doing the following:

  1. Learning local employment laws. This includes identifying regulations regarding working hours, holidays, sick pay, insurance, and more and having a (preferably automated) system in place to follow those rules.
  2. Onboarding workers. This includes collecting information such as name and date of birth as well as tax forms, background checks, benefit status, and work eligibility.
  3. Storing and securing data. Since you’re dealing people’s personally identifiable information (PII), you MUST have a way to secure that highly-sensitive data. The fines for mishandling data are serious, so you should be equally serious.
  4. Authorizing payments and ensuring your employees get paid accurately.  This includes identifying the appropriate deductions/taxes, keeping accurate records, paying on time in every location, sending out notifications, reporting as required to government institutions, etc.
  5. Having a system in place to identify and adjust to changes. You don’t always have time to wait weeks to adjust to new laws. Things evolve rapidly, so your system needs to be ready to evolve just as rapidly.
  6. Staying compliant. Laws are different from place to place and do change frequently, so your payroll management software solution should have systems in place to ensure  compliance wherever you operate.

Would Outsourcing Payroll Benefit Your Business?

Outsourcing payroll is especially valuable in certain situations. If a company needs to hire employees in multiple states, is growing rapidly, and/or needs to hire temporary workers frequently, engaging an Employer of Record (EOR) could be a game changer. An EOR mitigates compliance risks, increases payroll efficiency, and eases the administrative burdens of managing a workforce.

The Bottom Line

Payroll is one of the most complex and challenging aspects of operating a business and should be given appropriate attention by every business. When a company is growing, payroll is one of the most important aspects of business to have in good working order. The right people on your in-house team or the right partner are essential. If you think a partner would be beneficial to your business, reach out ! Relax: We got it.

The post Here’s What to Think About if You’re Expanding Your Business (And Therefore, Your Payroll) appeared first on PayReel .

To view our Partner blog, click here

Hall of Shame: 10 Terrible Workplaces (Plus How Not to Suck)

CMMA Blog

We talk a lot about what to do when you’re running a business–things like accurate worker classification, paying employees properly, and generally just doing right by your workers. What we don’t always address is what not to do.

10 terrible workplace violations and the lessons we can all learn from them

  1. A lesson from Packers Sanitation : There’s no place for having kids cleaning dangerous equipment.
  2. A lesson learned from Miami : If you don’t have the resources to ensure workplace safety, you have no business having a business.
  3. Lesson learned from this Virginia Home Care Provider : Overtime pay is not optional.
  4. Lesson learned from the saw mill : If OSHA tells you to fix something, just do it.
  5. Lesson learned from Dollar General : Repeat violations cost more than a dollar, in general.
  6. Lesson learned from this North Carolina home care  operation: Misclassifying workers to “save money” turns out to be expensive!
  7. Lesson learned from Baltimore : Shortchanging your people on their retirement will end up costing you more than chump change.
  8. Lesson learned from Georgia: Suspend operations if your suspension operations aren’t safe.
  9. Lesson from Delaware : Retaliation against whistleblowers will come back to haunt you.
  10. And finally, three lessons learned from thousands of greasy pennies : Pay your employees up front, don’t call your employees weenies, and if you’re gonna pay them in greasy pennies, at least own it. You just end up looking worse when you say you “don’t really remember” your petty behavior.

The Bottom Line

It’s in your power to be a good employer. If you don’t have the in-house resources (i.e. a dedicated department that specializes in these matters) to ensure you’re in compliance with overtime rules, worker classification guidelines, and benefits eligibility, you can ensure you stay in good standing by engaging a partner! Contact us to chat about what solutions we can provide for your business.

The post Hall of Shame: 10 Terrible Workplaces (Plus How Not to Suck) appeared first on PayReel .

To view our Partner blog, click here

🚩Looking to Engage a Payroll Partner? 3 Red Flags to Watch Out For 🚩

CMMA Blog

Employers are busy working out their policies around labor laws and fair pay as the economy changes. In turn, worker classification challenges  and employer missteps seem to be finding their way to the headlines more often. As we know, wherever money is on the line and laws are unclear, you’ll find controversy right behind. If you’re looking to engage an Employer of Record (EOR) or a partner for your compliance issues and freelancer management, watch out for these warning signs.

3 Red Flags That Should Send You Running

Promising to Find Legal Loopholes

This article  points to a California politician who has called for an investigation into an employer of record company and accused it of “advising its clients on how to misclassify workers and avoid taxes.” Whether the allegations prove true or not, we know it’s common practice. Let’s just get this straight right away: trying to get around the law does you no favors in the long run. Even when those laws are a real pain.

It might be tempting to look for a way around the rules, but paying employees fairly and classifying them correctly needs to be an absolute baseline for doing business with an Employer of Record. What you should be looking for is a team that keeps up with ever-changing contractor / freelancer payment and compliance issues on your behalf. 

The most effective partners will adjust to changes on both the state and federal level and will be proactive about ensuring compliance. With the right partner, you won’t have to think about the frequent changes in policy around freelancer payment and compliance regulations because they’ll be thinking about it for you. Find a partner that you can be confident is in position to mitigate compliance risk and educate you on practices that could compromise you legally.

Lax or Nonexistent Payment Processes

You know how people care about their paychecks? You should, too. If your partner doesn’t have a standard, well-established set of processes to make sure employees are paid accurately and in a timely manner, run. Just get the heck out of there.

If they have their act together, your payroll company will offer online management for employees to log hours and supervisors to approve them, fast/accurate payments, and automated overtime tracking. They’ll also provide you with consultation for overtime and benefits policies that will keep you in good standing. Their automated systems will track changes in minimum wage and sick leave policies. Don’t settle for anything less. You’re worth it.

They’re a Mile Wide And an Inch Deep

You know those restaurants with Encyclopedia-length menus? They’re not usually known for good food. They’re known for being barely adequate in every way. Contrast that with the restaurants who do a few things well enough to develop a fandom of loyal consumers who will go out of their way for that crave-worthy item.

If you’re looking for a prospective partner for your freelancer management, it serves you well to find one that can do the important aspects really well. You need experts. Like those mediocre restaurants, if they’re trying to fill every need, they likely won’t be great at any of them. Their classification processes will be thinly justified or they’ll have a one-size-fits all approach. They won’t have the resources or practices in place to audit business entities or certificates of insurance.

If they’re not able to dedicate the resources to doing the important aspects well, they’re also not  in position to take on many of the risks associated with freelancer management, which means they’ll offer weak or nonexistent indemnification. If a company’s offerings look too good to be true, dig a little deeper. Otherwise, you risk finding out they’ve cut corners only after there’s a problem.

Bottom Line

The post 🚩Looking to Engage a Payroll Partner? 3 Red Flags to Watch Out For 🚩 appeared first on PayReel .

To view our Partner blog, click here

If You Have Anyone on Payroll, You Cannot Afford to Ignore This

CMMA Blog

Anytime you’re dealing with payroll, there is risk involved. Workers understandably care a lot about it because their livelihoods are involved and the government cares because they have rules and regulations in place both to get the taxes they are due and also to protect workers. The two most important factors of a successful payroll program are accurate/on-time payments and compliance with federal, state, and local regulations. 

What Makes Compliance Challenging?

States and localities are constantly introducing new legislation, and with each change, payroll procedures change, too. Mistakes in income tax withholding rates, unemployment tax rates, minimum wage and labor laws can lead to costly penalties. The more states a business operates in, the more risky the compliance aspect becomes because the rules vary from place to place.

As the employment landscape has changed and many workers have shifted to more of a hybrid or remote situation, it has only complicated the matter further. If an employer doesn’t have an established entity to pay employees appropriately in a given state, they aren’t in position to have employees there at all. 

What Can Employers do to Prevent Problems?

We all know that prevention is the best policy, but some companies are quick to start auditing their process and procedures only after they see a problem. The businesses with the smoothest processes have proactive auditing measures in place to stay on top of changes, identify and solve gaps in their processes, etc. 

Manually managing all of these complex details is impossible. Businesses should take compliance very seriously to reduce their risks. If their internal team doesn’t have the bandwidth or tools to manage it accurately, they should engage a partner with the tools, methods and processes to help. They should also be in position to address the concerns that come up when employees have questions about their paychecks. If you’re wondering if a partner would help with your situation, let’s chat . This is our speciality. 

The post If You Have Anyone on Payroll, You Cannot Afford to Ignore This appeared first on PayReel .

To view our Partner blog, click here

Do You Think it Might be Time to Hire an Employer of Record (EOR)?

CMMA Blog

Staying on top of compliance concerns can be tedious and time-consuming. Plus, with possible fines, legal fees, and damage to a company’s reputation on the line, the stakes are high. Many companies find that having an in-house team dedicated to keeping up with the laws as they change (and then change again) is unsustainable. Handling all of the details around onboarding, classifying, and paying workers correctly requires a specific, highly-specialized skill set. Whether you hire a payroll service or build a team to do the job, they need to be fully in position to walk the legal line. 

Benefits of Hiring an Employer of Record (EOR)

1. They Diffuse Legal Landmines 

Contractor/freelancer payment and compliance regulations are ever-changing. An EOR allows you to hedge your bets on the legal front by mitigating compliance risks. They handle worker classification issues and track benefits eligibility and changes in minimum wage or sick leave policies. They can educate you on best practices and can serve as a sounding board for questions. 

2. They handle payroll. 

Compliance and payroll are some of the most important aspects of business to get right. Having those issues handled correctly keeps you off the radar with governmental agencies and keeps your workers happy, too. An EOR with online management for employees and managers, fast payment, automated overtime tracking/benefits eligibility ensure is an especially valuable partner. 

3. They adapt to changes on your behalf. 

The most effective teams have checks and blanches in place to stay on top of payroll regulations and legal changes  as they happen. They take the necessary steps to adjust policies and navigate the increasingly-complicated waters of payroll services. Their job is to make sure you’re following all regulations, rules, and federal and state laws. Whether you hire a partner for it or not, somebody on your team needs to be fully-versed in these issues. 

The Bottom Line

Labor laws and fair pay standard practices constantly change. Worker classification issues are top-of-mind topics for the government, employers, and employees alike. Pick an EOR  that is in position to stay ahead of the curve so you never even have to think about payroll services and compliance. If you’re ready to make compliance and payroll the easiest part of your day, c ontact us anytime.

The post Do You Think it Might be Time to Hire an Employer of Record (EOR)? appeared first on PayReel .

To view our Partner blog, click here