A gig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements. The trend toward a gig economy has begun. A study predicted that by 2020, 40 percent of American workers would be independent contractors. There are a number of forces behind the rise in short-term jobs. For one thing, in this digital age, the workforce is increasingly mobile and work can increasingly be done from anywhere, so that job and location are decoupled. That means that freelancers can select among temporary jobs and projects around the world, while employers can select the best individuals for specific projects from a larger pool than that available in any given area.

Key challenges for HR

  • Managing a talent pool and developing an employee value proposition that works across a blend of permanent and portfolio workers.
  • How to integrate contract terms and conditions into a cohesive, seamless whole and offer pertinent benefits and rewards – and become an employer of choice for “gig workers”.
  • Ensuring that the right technology is in place to automate joining and leaving processes and ensure they are smooth and easy to manage so as not to increase the HR admin burden
  • Working out what risk management and governance ground rules should be put in place for portfolio staff working for multiple employers, including rivals.
  • Managing quality control and ensuring that contracts do not simply end up going to the cheapest rather than most reliable and/or best bidder.
  • Line managers operating beneath the radar without being aware of working time, health and safety and minimum wage legislation

While it can be tempting to label some aspects of the new economy good or bad, helpful or threatening, in general the most propitious approach managers can take is to think descriptively and keep an open mind. Be ready to embrace and roll with changes, and recommend solutions when roadblocks or new situations arise. Before jumping the gun to either embrace or shun the rising tide of the on-demand economy, dig into research and determine what makes sense for you.

The gig economy isn’t a trend that’s going away anytime soon. But the way it dovetails with a business, is to be determined – in large part by managers and businesses owners themselves.

Share your thoughts on “gig-economy” impacts, challenges and opportunities associated.

source: http://whatis.techtarget.com/definition/gig-economy , https://www.tsheets.com/resources/gig-economy-employees and Alex Swarbrick, Roffey Park