According to techtarget.com, a gig economy is “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 by Intuit predicted that by 2020, 40 percent of American workers would be independent contractors.”
Is your organization preparing for the new gig economy?
According to The Heritage Foundation, Gallup, and other research groups, the new gig economy is arriving quicker than anticipated due to technology, generational employee needs, and the need for organizations to create change quickly. The gig economy was estimated to be between 34% and 40% in 2017. The gig economy will grow to embrace the majority of American workers in 2027 (a short nine years from now. The reality of the economic climate is that 94% of jobs created in last decade have been categorized as part-time jobs. Unfortunately, part-time jobs are trending, and the economic outlook precludes change. While the trend of part-time job creation continues, it creates unhappy employees, constant employee turnover, and dissatisfaction in the workplace that costs organizations billions of dollars each year.
Will the new gig economy save your organization money?
Millennials and their love for technology and flexibility will drive the realities of the new gig workforce for employers. As technology advances, it will continue to give both organizations and employees the ability to have both a mobile and at-home office that will outperform any current employee base business model.
How to get started in the future that is here now!
There are thousands of resources in the marketplace to help businesses develop a safe strategy for entering and continuing to grow their on-demand labor force.
Some things to think about when preparing your company for the new gig economy:
- Ensure technology in your company is available for a successful gig environment.
- Train recruiters to hire the right people for your company.
- Develop a human resource department for a gig economy.
- Create insurance benefits, pay structure, and other employee benefit packages that align with the gig economy.
- Grow a relationship with a recruiting firm such as Shiftgig.
The most difficult challenge will be creating a portable benefits system that will be needed for the gig workforce and their families to incorporate a healthy lifestyle. The most significant obstacle for organizations and millions of future employees will be politicians that don’t understand how the real world works. Millennials will have to use their voting power to force politicians to deal with what business organizations do not want to deal with, and organizations will have to use their lobbyists to strive for change. Congress today still provides hope for change.
H.R.2685 – Portable Benefits for Independent Workers Pilot Program Act
This Bill has been sitting in Congress for a year with no action. Action on this Bill could help millions of employees and organizations today and add significant benefits in the coming years.
Are you still concerned about taking a step towards an on-demand employee?
Review some successes and failures in your company to help your organization takes steps forward with the Millennial and Baby Boomer applicants that will change the way businesses operate.
Examples of organizations that are currently participating successfully in the gig economy:
Examples of organizations that haven’t yet proved successful with the gig economy:
Worried about the legal issues of a gig economy?
- Proceed with caution and set-up an employment structure legally in your organization.
- Review the first legal case for a gig job to understand the dynamics of the future workforce: Lawson v. GrubHub.
Of course, not all positions within organizations can be part of a gig workforce, but there will be unlimited possibilities for many organizations to explore the opportunities of a workforce that offers scheduling flexibility, contributes to the bottom-line of an organization quickly, and allows for a revolving knowledge base.
Don’t want to leap into the gig workforce right away?
Try creating an ‘in-house gig’ system that allows current employees the opportunity to complete new tasks or share their hidden skills and knowledge on a project.
When will your organization start participating in the on-demand, new gig labor workforce?