What is the gig economy? Is it ride-share drivers or freelancers? TaskRabbit project workers or portfolio workers? Well, broadly it’s a term that’s been used to encompass all of that and everything in-between, referring to talent deployed for a specific task or a specific period of time. And it’s growing.
Currently 1/3 of US workers are gig workers, and according to a survey from Deloitte, 84% of millennials and 81% of Gen Z-ers said that they would consider joining the gig economy, with many of them also reporting that freelance work appeals to them more than full-time jobs. And it’s easy to understand why. The rise of gig work has been steadily growing with the proliferation of apps to facilitate it – and in 2022, arguably more than ever, workers are enjoying the flexible schedule, the task variety, the autonomy and the choice that comes with gig work. It can also help workers earn more money and learn new skills on the job without as many barriers.
70% of companies believe that they are effective at attracting and retaining diverse employees – and gig workers should be included within this group. In fact, a major HR trend to keep up with in 2022 is the increase in gig economy. HR managers must learn to embrace gig economy and gig workers, instead of thinking it works against them. This article will serve as a resource for both gig economy / gig worker trends and how HR technology can help play a key role in embracing gig economy.
There has been a lot of progress in terms of companies designing solutions around supporting gig work, such as: apps that make it easier to source, hire, and pay freelance talent, and apps that help community keep gig workers up-to-date with the organization. But typically, those solutions are designed for one type of worker – the gig worker. Meaning, internally, within any given organization, there are often still needs that aren’t necessarily being met by these solutions because they don’t account for different types of workers. Some standard challenges that HR faces around this can include:
Managing contract terms and conditions that suit both traditional employees and gig worker, and ensuring those contracts are easily accessible
Managing the talent pool of gig workers and ensuring quality control
Developing an organizational culture that works for both employee types
Managing technology to automate the gig worker onboarding and document management process
And there are other implications to be considered as the gig economy expands. Namely:
Roles may be redefined: There may be a future rising need for splitting or deconstructing more traditional job roles into series of tasks that individuals can complete.
Labor policies need to be updated: There will be a need to provide appropriate protections to this group of workers in terms of shaping policies around benefits and rights.
Connection to other workforce systems: Gig workers aren’t typically included within initiatives around recognition and rewards, D&I or employee engagement, but as they make up a larger chunk of the organizational workforce, their inclusion will only grow more critical.
Tech tools/HR technology can bridge the gap between HR, Gig Workers, and standard/full-time employees
Retaining good gig workers should be of the utmost importance to any organization that employs them. After all, between the rise of this flexible type of work, and the pandemic-related challenges that have made retention so difficult, the war for talent isn’t slowing down. The best gig workers will want to work for the organizations where they’re treated the best – and HR technology can help.
To start, it can help HR provide a consistent employee experience through a consolidated digital hub - regardless of employment status. This shared experience can also help gig workers feel less isolated from the organization and can improve many of the communication gaps that are prone to occur.
It can also make paperwork, contracts, compliance and payment completely automated – saving HR the trouble of manually tracking these requirements, and ensuring that all types of workers receive what they need on time.
And not just any technology - GoCo, specifically can help:
Simplified Contractor Agreements and Documents - With GoCo’s proprietary Magic Docs technology, HR pros can easily upload personalized contractor agreements, auto-fill with “magic” fields, and collect e-signatures in minutes. The W-9 is also included as a standard government form so you don’t have to add it manually. NDAs, statements of work, scope of services, and non-competes can all be “magictized.”
Custom work groups/Job Codes - Employees and contractors can track hours worked against customers, projects, tasks, and more.
Automated onboarding workflows - GoCo’s automated workflows features allows you to build standardized contractor workflow templates, assign tasks accordingly, and track the status every step of the way.
Allow contractors to enroll in benefits — If applicable and compliant, GoCo makes the benefits enrollment process as easy as it is for standard FT employees.
Fully automate your HR with GoCo.