The Rise of The Gig Economy – Are you Ready?
Technology has advanced to the point where you can get work done almost anywhere. Now, more and more people are working two-part time jobs, short-term contracts, and opening/operating business on the side while still working full time. The rise of the “gig economy” has lots of benefits for organisations, but also presents some challenges.
What is the “gig economy” exactly? The gig economy is the number of non -traditional employees, or non-contingent workers, meaning freelancers, independent contractors, and consultants. By various counts, these workers are now making up 20-30 % of the workforce. That percentage is only set to rise. Companies are now figuring that they will move to an “agile workforce” over the next few years. It is an attractive policy adaption as it aligns to the future of work and matching needs appropriately while not wasting resources. It gives the option of having workers come in for as many hours as they need then calling it a day. If full-time workers are needed, they can be contractors rather than employees and therefore help with employer’s financial bottom lines.
With platforms like Uber and Upwork only rising in prominence and availability, employers need to focus on challenges that their organizations will face when trying to work and manage their regular and “gigging” employees. According to Intuit’s new “On-Demand Economy Worker Study”, they are forecasting there will be 9.2 million on demand workers by 2021.
1 – Managing the Performance of the “Giggers”
Creating this agile talent has many benefits for organisations, but Human Resources needs to be thinking about how to effectively manage and engage these workers. They need to consider ensuring the gig worker is included in an onboarding program, input into important decisions, provided with two-way feedback & communication, recognition and measuring more than just cost but soft skills.
2 – Ensuring you have firm Security Policies in place
Technology has changed the way we communicate to the way we do business. Mobile technology has enabled the gig economy as people can work from anywhere. If more businesses are doing more work outside the traditional job site and allowing contractors to work from home or remote access their network, that allows for possible security breaches to employer’s internet network. Have firm security protocols in place to ensure your company’s system remains accountable and keeps company information secure.
3 – Knowing the Employment Legislation & Your Responsibilities
With the rise of multiple employers – worker arrangements, ensure your company keeps up to date with the responsibilities it holds for the various types of worker arrangements that are in place. Contributions such as health benefits or retirements plans or commitments that you will be in charge of depends on different employer legislation. Responsibilities towards a full-time employee are different than a contract worker. Know the legislation that governs that relationship to ensure you are enforcing them.
For More Information, get in touch with Laura!
How Talivest can help
Talivest is an online platform that helps global companies tap into rich networks of their past and future talent. We help organisations understand why employees are leaving, stay connected with them and help re-hire high performing alumni. This results in reduced recruitment costs, boosted productivity, improved brand culture and a rich talent pool for referrals and boomerangs.