The impact of the gig economy on HR and employment practices
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What is gig economy?
According to data on the gig economy, a free-market
system exists where businesses and independent workers enter into temporary
employment contracts. Gig word refers to an employee of a short time. A gig
economy consists of different job roles including the following.
Freelancers
Consultants
Independent contractors and professionals
temporary contract workers
They are called ‘gig’
workers. They exist in every sector and engage in formal agreements with
businesses to render services without being on the business payroll. The gig
economy is now becoming more and more well-known among generations as modern
working trends shift to virtual workplaces. Due to the majority of employees'
willingness to participate in the gig economy, HR professionals are now faced
with the task of retaining those workers in order to expand the organization's
talent pool (Rajamanickem,2018)
One advantage of the
gig economy is that it frees up company resources like office space and
training costs. Additionally, it offers benefits to workers like a better
work-life balance and the flexibility to select the gigs or jobs they are
interested in. Despite the charm of gig work, workers seem to trade it for a
pitiful salary, limited or no retirement benefits, complex tax laws, and
out-of-pocket equipment expenses.
Source :https://www.youtube.com/@GCFLearnFree
Nowadays, the gig economy is
becoming more popular among Gen Z and millennial workers. This trend is
slightly observed in other age groups as well. HR professionals are now tasked
with the challenge of retaining those workers in order to increase the
organization's talent pool because the majority of employees are willing to
engage in the gig economy. Gen X and baby boomers are leaving the workforce, so
it's time for HR bodies to make plans to entice more gig workers. According to
the Deloitte Global Millennial Survey, 84% of millennials and 81% of Gen Z
applicants are prepared to work in the gig economy in 2019(Hsenidbiz, 2022).
In order for organizations
to change their organizational structures, it is necessary to identify the
positions within the organization that are suitable for the gig economy. HR
people can identify these types of jobs within a company. So that, they can
fill out them easily. Because they labor independently, freelancers are more
engaged, creative, and motivated than traditional employees. Consequently,
having particular job roles for gig workers can boost organizational
productivity. Gig workers are not loyal to any one company because they work
for so many different companies, but they will adhere to any limits established
by the employer.
The most noteworthy aspect
of the gig economy is that workers are willing to work flexible hours. The
majority of applicants value work-life balance and place a high priority on
employment flexibility. Therefore, if the company wishes to recruit more gig
workers, flexibility must be used. HR can resolve this problem by luring
valuable talent to the company with more flexible work schedules, remote
employment possibilities, competitive base salaries, and vacation pay( Rajamanickem,2018).
When it comes to
performance management, the gig workers must be evaluated on a different
performance evaluation metric. Also, the objectives that are assigned to gig
workers should be short term and there should be a specific outcome. HR should
work on preparing a suitable performance matrix and defining clear objectives. In a gig economy, there
will be frequent exits and hires. Therefore, HR must always prepare for them
and should have a contingency plan and succession plan to cater full-time and
gig workers( Rajamanickem,2018)
Training and career
development are a critical factors of employment.This is not a short-term goal but takes a longer period to train an
employee and improve the productivity of the business. When compared to a
full-time employee, the learning objectives for a gig worker should be
carefully managed. For the capability-building strategy, focused, manageable
learning that produces immediate results on the work must be selected.
Long-term training and workshops that cost too much will not be profitable for
the company.
It's challenging to run staff in the gig economy. HR must have a comprehensive understanding of these
workers' needs and goals. The gig economy has already become a trend and
businesses depend on the gig economy to seek talent given the population
growth and the business environment's increased dynamic.
References:
1. Hsenidbiz. (2022, December 22). Ways in Which the Gig Economy Impact on Current Human Resource Practices. Accessed on March 9, 2023, from https://hsenidbiz.com/apac/blog/ways-which-gig-economy-impact-on-current-human-resource-practices-hsenidbiz-blog#:~:text=The%20most%20significant%20impact%20of,gig%20workers%20to%20the%20organisation.
2. Rajamanickem, A. (2018, August 8). The Role of HR in the Gig Economy. Retrieved March 11, 2023, from https://www.linkedin.com/pulse/role-hr-gig-economy-abinaya-rajamanickem/
The gig economy has had a significant impact on HR and employment practices, creating new opportunities and challenges for companies and workers alike. Good article.
Thank you for your feedback. The gig economy has indeed brought about significant changes to the traditional employment landscape, presenting both opportunities and challenges for companies and workers.
Good work. The gig economy has had a significant impact on HR and employment practices. HR departments need to be aware of the unique challenges and opportunities presented by the gig economy and develop strategies to effectively manage their companies' relationships with gig workers. Well done.
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Rare topic. Well elaborated
ReplyDeleteThank you for your feedback! I'm glad that you found the topic well elaborated.
DeleteGood job. keep writing
ReplyDeleteThank you for your feedback.
DeleteThe gig economy has had a significant impact on HR and employment practices, creating new opportunities and challenges for companies and workers alike. Good article.
ReplyDeleteThank you for your feedback. The gig economy has indeed brought about significant changes to the traditional employment landscape, presenting both opportunities and challenges for companies and workers.
DeleteGood work.
ReplyDeleteThe gig economy has had a significant impact on HR and employment practices. HR departments need to be aware of the unique challenges and opportunities presented by the gig economy and develop strategies to effectively manage their companies' relationships with gig workers.
Well done.