Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:02):
Welcome to the HR
Chat Show, one of the world's
most downloaded and sharedpodcasts designed for HR pros,
talent execs, tech enthusiasts,and business leaders.
For hundreds more episodes andwhat's new in the world of work.
Subscribe to the show, follow uson social media, and visit
hrgazette.com.
SPEAKER_02 (00:26):
Welcome to another
episode of the HR Chat Show.
Hello, listeners.
This is your host today, BillBannham.
And in this episode, we're goingto dive into the fast-changing
world of the freelance economyand distributed workforces.
Joining me today is PavelShinkarinenko, founder of Mello,
a pioneering HR platform thatprovides freelancers with tax
(00:49):
and social security support,similar to what employees
receive.
With more than 20 years infinance and HR technologies and
deep expertise in the gigeconomy and contractor
relationship automation, Pavelis here to share insights on the
recent upwork acquisition byBubti and what it signals for
(01:09):
the future of flexible workforcemanagement.
Tune in as we discuss the H1Band L1 Visa Reform Act and how,
if enacted, it will crack downon companies that import large
numbers of H1B and L1 workers todisplace American workers and
outsource American jobs.
(01:29):
Listen to to understand how itwould provide the Department of
Labour with new authorities andresponsibilities to ensure that
program requirements areenforced.
I hope you enjoy thisconversation that I had with
Pavel.
Pavel, it's my pleasure towelcome you to the HR chat show
today.
How are you doing?
SPEAKER_03 (01:50):
Oh, nice to meet
you, Bill.
It's really a pleasure.
I'm really glad about yourinvitation.
And I hope we will have a veryuseful conversation today.
SPEAKER_02 (02:04):
Me too.
So before we get into thehard-hitting questions, Pavel,
why why don't we start by uhbeyond my weintroduction just a
moment ago, why don't you take aminute or two to introduce
yourself and also tell ourlisteners a bit about Mello?
SPEAKER_03 (02:19):
Uh my name is Pavel
Shinkarenka.
I'm a CEO and the founder of themellow.io.
Uh that's the platform thathelps companies to manage their
uh freelance forces uh acrossthe globe in more than 100
countries, and also we have theuh products for the freelancers,
and we have help them to begetting paid in time and uh
(02:44):
collaborate with the corporateusers worldwide.
So we act as intermediary forthe both sides of freelancers
and the companies across theglobe.
SPEAKER_02 (02:55):
Let's start with
some context.
Uh, today, as I mentioned in theintro, we're talking about the
potential changes to the H1B andthe L1 um visas.
Um there's talk at the momentabout a reform act which is
going to have fairly significantimpact.
Um, so in your opinion, why isthe H1B and the L1 Visa Reform
(03:17):
Act potentially beingintroduced?
And how could it affect Americancompanies and foreigners looking
to work in the US?
SPEAKER_03 (03:26):
Um I I will start um
with my own opinion.
I'm not pretend to be 100% true,uh, but um on from my
perspective, that's reallylogical.
Um in the current uh governmentposition, and uh that
(03:50):
protectionism we already see inmany many places uh in many many
decisions uh uh already beendone by the uh Trump and uh
current uh government, and thatsounds logically.
(04:11):
Uh I think that will that willbe not so strictly protectionism
for the people who are alreadyin US, and I think that doesn't
help them to uh receive the newjob or some kind of uh positive
(04:34):
uh in their in their income, butum I think um US-based corporate
uh cor uh corporate uhcorporates start to uh use a lot
of uh remote workers and the URplatforms instead of uh bringing
(04:59):
the new um new people inside theUS.
Um so we will see the thecooling down of the migration
processes, the legal migrationprocesses, not illegal ones.
Uh and on the other hand, wewill see increasing of
(05:22):
outsourcing, but at the sametime, uh we know in in the um
parliament you have another actum that tries to set up the
additional fees for theoutsourcing perspective, so that
(05:45):
makes that uh things more andmore complicated for the
US-based companies.
And finally, I expect um thatjust US-based taxpayers have to
pay for all these uh purposesand perspectives.
Uh because finally, all thatUS-based companies produce goods
(06:09):
and services for the US market.
And if you uh try to um putadditional charges, fees, or
something like that on theirshoulders, they will follow the
charges into the um people orcompanies who buy their goods
(06:31):
and services inside the US.
So that will be the final uhdestination point of all the
changes.
SPEAKER_01 (06:42):
Thanks for listening
to this episode of the HR Chat
Podcast.
If you enjoy the audio contentwe produce, you'll love our
articles on the HR Gazette.
Learn more at hrgazette.com.
And now back to the show.
SPEAKER_02 (06:58):
Okay, thank you.
So my understanding is uh thatthe changes will impact certain
roles, particularly uh techroles, and it means potentially
$100,000 per uh application.
So for each individual.
You mentioned you mentioned justa moment ago there will probably
be a differ additional fees aswell on the outsourcing side.
(07:21):
What are those additional feesbeyond the hundred thousand look
like?
Can you break that down for us?
SPEAKER_03 (07:25):
Uh no, no, no.
That's that's not connected toH1B visas at all.
That's totally different act,but uh on the same time, um it
is announced but decline innowadays.
Uh, I think it has some kind ofchanges to be approved in the
(07:47):
nearest future, uh, but we willsee and take a look.
Uh H1B visas um requires thesignificant uh fees when you uh
when you as a US-based companytry to bring the new um new
workers inside the US.
(08:09):
Uh and that means you will tryas a company to avoid this
perspective.
So we will uh our clients orUS-based companies uh will
continue to work remotely withthose kind of people.
Do not bring that them in theUS.
(08:31):
And that one um one thing thatwill follow that that new rule.
On the other hand, uh thegovernment start to um think
about how to um set up the newfees for those companies who do
(08:53):
not hire the local ones, thelocal US workers, but they try
to outsource outside of US thiskind of works and services and
establish the additional fee of25%.
Uh and that means, okay, mygoods and services becomes more
(09:16):
and more expensive.
That I'm talking about.
SPEAKER_02 (09:21):
Okay, thank you.
Let's let's delve into that abit more.
Um, so how might these changesaffect the the uh EOR, the the
employer record market in the USand globally?
What will there be, in youropinion, would you feel that
there will be more or fewervendors as a result?
SPEAKER_03 (09:37):
I think in short
term, in short term, uh the
demand in EOR and contractor ofrecords will be increased in uh
in a couple of months.
After that uh um that rule be uhuh became into the force.
(09:58):
Uh but after uh I think it itcould affect uh and slow down
the growth because a lot ofcompanies who could hire people
inside internally inside the USwill try to do that, but uh
inside the US you have notenough um just the freelance
(10:22):
forces or labor forces.
Um when we start to calculatehow many people work remotely
for US-based companies, thenumber is nearby 300 million
people from India, Pakistan, uh,African region, and many many
(10:44):
countries.
They do a lot of small tasks,they are freelancers, remotes,
and we do not have so manypeople in the US.
So they cannot be replaced bythe US-based workforces.
SPEAKER_02 (11:02):
Following these
potential changes in the US, do
you foresee that uh otherregions could follow a more
protectionist approach as well,such as Europe?
SPEAKER_03 (11:12):
Oh um the Europe is
not so united as you can see
from outside.
I think we will see thedifferent perspective um country
by country, and we have thetotally different situation in
the government and politics.
(11:32):
It depends on the economicsituation inside each country.
But I think a couple ofcountries inside the European
Union uh will use this um uhperspective to uh legalize more
(11:53):
and more uh high-skilledmigrants inside because they try
to understand uh how manyperspectives uh in nearest
future they will achieve whenthey allow the high-skilled
people to live in in theircountries.
(12:15):
Uh, we will talk about theCyprus firstly.
Uh we live in Cyprus and we knowmore about the local politics
and perspectives.
Uh Cyprus is welcomed forhigh-skilled migrants, and they
even make their um rules andmigration procedures softer and
(12:40):
softer for those kind of people,especially.
So maybe some other countries inEuropean Union also will use
that uh opportunity uh to bringmore high-qualified people
(13:02):
inside and be more um receive uhmore advantages in that.
SPEAKER_02 (13:12):
Okay, so lots of
factors here, politics being
one, culture being another,population pyramids being
another, of course.
So the US is an example of of aof a population pyramid where
you've got lots of youngerpeople towards the bottom.
Um, and I guess the thephilosophy from the Trump
administration is offering moreopportunities to those people
within the US, those youngerpeople within the US, compared
(13:34):
to say Italy in in the EU, wherethat population pyramid is is um
the other way around, isn't it?
You've got uh lots of olderpeople at the top and lots of
lots of younger people at thebottom.
SPEAKER_03 (13:45):
So yeah, it really
depends on the demographic
situation, of course.
SPEAKER_02 (13:51):
Okay.
Um now I want to ask you, manymany companies are struggling
with the complexity of vendormanagement when working with a
fragmented gig economy.
What what role uh do platformslike Butley or Mellow play in
reducing that kind ofcomplexity?
SPEAKER_03 (14:10):
Um that's um a
really um supportive role.
We j we do not make some kind ofglobal changes in that uh
industry or in that field.
Um we just make uh theadministration and management of
(14:30):
the remotes and especiallycross-boarding uh relationships
with the freelancers andproject-based workers more
easier and more cost-efficient.
Um, and that's why companiesstart to use um freelancers and
part-timers and remotes more andmore.
(14:53):
But I think the the significantdriver of this story was a
COVID, not platform like ours orum other ones.
Um just one time when we wokeup, we recognize okay, now we
(15:14):
are stuck at home and we have toum manage with this situation,
and we receive all that skillsof remote management.
And when companies across theglobe uh receive the new um
achievement and uh remote firstinfrastructure, they start to
(15:37):
use freelancers, remote,project-based workers more and
more.
And that trend continues afterthe COVID time, because when
people who work remotelyrecognize all the benefits of
this situation, uh do notwasting time on the trip from
(16:00):
the home to the work and back,um, reduce some kind of costs,
increase their income, um thereal income.
Uh they start to move todifferent cities, to different
regions uh to spend less andearn the same money.
(16:21):
So they increase their realincome and they really love it.
So I think that trend will bethe same following years, and
companies already have remotefirst infrastructure and
platform like ours, help them tomanage and administrate their
(16:44):
finance forces across the globe.
And we made this administrationeasier and cheaper for the
companies.
That's our role, just supportit.
SPEAKER_02 (16:57):
And it gives all of
these companies a much bigger
talent pool as well, of course,which is um I'm a big proponent
of that.
Um, okay.
So looking ahead, what whatrisks or challenges do you see
for for platforms like Upwork asthey attempt to scale into mega
product territory while whilestill meeting unique client
needs?
SPEAKER_03 (17:19):
Um I think the um
the next trend um means um more
and more personalized solutions.
And platforms like an upwork,they are so generic.
And I think that period of timewill be so challenging for them.
(17:44):
Um I'm not I'm not sure.
Um I I I can see and imagine theway of transformation of that
huge businesses like freelancemarketplaces uh into something
else with personalizationsinside, but maybe that's
(18:05):
possible.
That's it depends on on uh on uhtheir approach.
Um but that will be thechallenge for them, of course.
Uh because they start to uh theythey always um sell the
opportunity of uh receiving alot of uh um cheaper freelancers
(18:34):
and increase the competitioninside the platform and
dramatically reduce the price ofthe services of freelance
services for the customers.
Uh but I think now that's that'snot a good idea.
(18:55):
The better idea is matching notthe cheapest one, but the most
suitable freelancers for theservice request and for the
person who hiring freelancers.
That's the most important thing,not not the cheapest option.
SPEAKER_02 (19:14):
As the founder of
Melo, what what's next for you
and your team as as distributedwork continues to grow?
SPEAKER_03 (19:21):
From our
perspective, personalization is
the key.
We're using AI and uh AI-basedtools to help freelancers to
receive the new projects withour project rather.
Um, and we also have company uhhelp companies and their
(19:44):
managers with our new AI tool umto find the right person for
their service request uh fromtheir network, from the network
of their network.
So that's a totally personalizedtool that allows you as a
manager to uh reach the righttalent.
(20:08):
So we discover a lot of millionsof deals and recognize that the
most successful deal with thefreelancers um if the deal with
a free with you as a manager, umcorporate manager on one hand,
and the freelancers, um, thedeal with the person who you
(20:29):
already um with that guy youalready work with before and
were successful, or yourcolleagues worked before and
were successful.
So the repeatable deal is moreand more successful, uh, and
that the best suitablefreelancer for you.
So we help managers to find thefreelancers inside their
(20:54):
networks or next to them.
SPEAKER_02 (20:57):
Excellent.
And just finally for today,Pavel, how can folks connect
with you?
So is that LinkedIn?
Do you want to share your emailaddress?
Are you all over Instagram andplaces?
And of course, how can theylearn more about LinkedIn?
SPEAKER_03 (21:09):
LinkedIn is yeah,
LinkedIn is easy way.
Uh, or mellow.io and contactpage.
You can write me on email orconnect me with me with uh via
LinkedIn.
SPEAKER_02 (21:24):
Perfect.
Well, that just leaves me to sayfor today, Pavel.
Thank you very much for being myguest.
Thank you.
And listeners, as always, untilnext time, happy working.
SPEAKER_00 (21:36):
Thanks for listening
to the HR Chat Show.
If you enjoyed this episode, whynot subscribe and listen to some
of the hundreds of episodespublished by HR Gazette?
And remember, for what's new inthe world of work, subscribe to
the show, follow us on socialmedia, and visit hrgazette.com.