Blog 4 - Embracing the Gig Economy
Embracing the Gig Economy
What is Gig Economy?
Gig economy is a free market system where organizations and independent workers engage in short-term work arrangements where people earn income providing on-demand work, services or goods,” often through an app or website. For example,
- Freelancers
- Consultants
- Independent contractors and professionals
- Temps (temporary contract workers)
Figure 1 : Examples of Gig Economy
Freelancers, Consultants and temp workers have been around for a long time, so the gig economy isn't a new concept. The gig economy has been scrutinized for the past few years because technology has reduced entry barriers to such an extent that "gigs" have been accessible to an unprecedented number of people. Same time, with the disturbances caused by the pandemic, more and more full-time workers are now turning to gig opportunities (Challenging Horizon, 2022).
What Impact Will the Gig Economy Have on a Business?
1. Reduces
complexity for internal staff
Complex projects don't have to overwhelm the team or create a tumultuous work atmosphere. Contractors can provide extra assistance to employees and pick up the slack where needed, ensuring that the projects run smoothly and that the team meets its objectives.
2. Specialized
skills and well-rounded skill sets
Because gig workforce become masters
of their field, they are frequently highly talented and offer specialized
expertise. They are also well-rounded because they work for a variety of
companies and are able to adapt and learn from each encounter. Freelancers can
provide a fresh perspective to the organization, as they have worked with a
variety of organizations. This can help to develop and scale (Zety, 2022).
How Can HR Prepare for a Smooth Integration with Gig Workers?
1. Establish
an Onboarding Strategy for Gig Workers
A
proper onboarding procedure is more important for contractor-client
interactions. Gig employees may want to access confidential company
information, so it is important to make sure they can be trusted.
Non-disclosure and service level agreements may also be beneficial. Provide
extensive training and clearly define your expectations is also crucial to avoid
miscommunication and problems that causes projects to fail.
2. Identify
whether the project is fit for Gig workers?
Working with contractors or freelancers necessitates a shift in perspective from jobs as positions to work as a set of duties and abilities. Determine whether an employee or a contractor is the greatest fit for the job (short or long-term gig). Employees often cost less than contractors for long-term employment (years). Furthermore, contractors may not be interested in working on a long-term project because they prefer to be flexible.
References
Anon., 2022. Challenging Horizon. [Online]
Available at: https://challenginghorizon.com/the-rise-of-gig-economy/
[Accessed 3 5 2022].
Duszynski,
M., 2022. Zety. [Online]
Available at: https://zety.com/blog/gig-economy-statistics
[Accessed 3 5 2022].
Hill, S.,
2016. Medium. [Online]
Available at: https://stevenhill1776.medium.com/why-the-gig-economy-is-sputtering-a8342103ba88
[Accessed 3 5 2022].
Generating additional income and having work flexibility are the most common motives to work for gig economy platforms. We can get a fair knowledge about the gig economy and its impact on HRM from your article. well done
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DeleteThanks Venushka
DeleteThe reason why the gig economy has been under scrutiny for the past couple of years is that technology has lowered barriers to entry so much that “gigs” have become easily accessible to an unprecedented number of people.
ReplyDeleteWell done this blog Wasantha.
One of the key benefits of operating in a kick economy is widely considered to be the reduction of costs and expenses. other benefits also you have pointed out in your article. good
ReplyDeleteThe Gig economy is a free market system in which businesses and individuals engage in short-term employment arrangements in which people earn money by offering on-demand work, services, or items.
ReplyDeleteAs a result, the most popular motivations for working for gig economy platforms are to earn extra money and have more work freedom. Good Article
Extra money and employment flexibility are the most common reasons for working for GIG economy platforms. Your research gives us an excellent knowledge of the gig economy and its implications for human resource management. excellent work
ReplyDeleteYou have nicely expained what is the idea of GIG economy and its applications.It can be identified as new challenge that a HR manager has to face who involving in managing pepole in GIG ecomony orelated organization. I personally learn lot from your article.It is a great work and well done.
ReplyDeleteThis is one of the newly introduced concept and interesting topic to read. As per my knowledge employers profit from gig employment because it allows them to access competent labor at a time when finding full-time staff is becoming more difficult. Gig workers, also known as contingent or contract employees, have more freedom and have access to new options that were previously unavailable. Excellent article.
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