How human capital management can help organizations effectively tap into the gig economy

Today, gig workers encompass a broad spectrum of roles in hospitality, data entry and analysis, graphic design, writing, publishing, marketing, editing, proofreading, virtual assistance, development, and more.

The gig economy is transforming the face of the Canadian workforce. According to Made in Canada:

28 percent of adult Canadians work in the gig economy, most of them part-time

79 percent of gig workers do at least two jobs to earn a sufficient income

20 percent of Canadians have taken on a gig job in the last year to boost their income

The future of the Canadian workforce is intrinsically tied to the gig economy, and there is no sign of this trend slowing as more people under 55 participate in multiple part-time positions. Made in Canada reveals that 42 percent of men and 45 percent of women aged 18 to 34 currently work in the gig economy or have worked in it in the last five years and 39 percent of men and 32 percent of women aged 35 to 54 have worked or are still working in the gig economy.

Why are workers embracing gig work?

Whether it's categorized as part-time, freelance, seasonal or contract work, there is no denying the appeal of gig work. ADP says, “Being an independent contractor is a great way to effect a lifestyle design. It allows [workers] to avoid commuting and office politics and maybe make more than they would have as a full-time employee. In other words, the gig economy doesn't just apply to low-skill jobs. Its growth includes highly skilled talent that prefers a new way to work."

Jarrod Stark embraced gig culture through the umbrella of his company, Billet Media, which he founded in 2013. After being laid off from a job in sales, Stark wanted to shift into marketing. Due to family, life and financial obligations, he knew taking a low-paying internship wasn't viable. “Instead, I did what many entrepreneurial people do when they can't find the job they want: I created it,” Stark says, “My logic in starting my own company was that I would likely have better luck convincing a small business owner to pay me a small amount of money for marketing, video and advertising services than I would convincing a corporate hiring manager to pay me a lot of money with only ‘analogous’ job experience. It turned out that I was right. Customers don't typically critique your CV the same way an employer would; they simply Google you, look at your website and samples of your work and quickly decide if they want to do business with you or not. For me, fortunately, that has been enough.”

A low-commitment way to tap into talent

Gig culture allows businesses to hire top-notch professionals without the longer-term commitment, salary and benefits expenses associated with full-time employees.

Expert support can be hired on a longer-term or temporary basis to help during peak seasons, such as fall registration peaks at academic institutions or tax season at financial companies.

Companies with a central or head office and nation-wide or international clients can hire people to work remotely as an alternative to having in-person staff time-shift their hours to meet the 9-to-5 demands of different time zones. Companies with part-time employees can allow space sharing or remote work to save money on office space.

Taking a true headcount

While many organizations allocate contractors' fees to other budget lines, more sophisticated systems manage and count the work of such workers as part of the person-hours needed to run the business.

Applying performance measurement systems with goal setting and project tracking to contract employees can provide them feedback needed to do their jobs better and potentially flag them for new projects in areas where they have previously excelled.

Responsible onboarding practices

Centralized systems can allow gig and full-time employees to access the same information and collaborate on projects. Human resources teams will need to customize some of the onboarding process for gig workers, including setting clear expectations and providing information on how to get the support they need for success. Just like for full-time employment hires, those hiring should create a process to ensure they’re hiring low-risk talent with the right skills and culture fit to work alongside full-time staff.

Limitations and challenges

Some leaders may struggle with the unique dynamic of gig workers in understanding how they fit into the team. Gig workers fall into a category outside of the traditional boss/employee dynamic, with the company acting as their client. Some people find this differentiation difficult to manage effectively, and human capital management (HCM) professionals will need to lead the charge in finding solutions that allow gig workers and full-time staff to work together effectively.

In addition, many gig workers select their vocation for its flexible hours and may have other work or demands that compete with projects during standard working hours. Organizationally, last-minute requests must be considered on a case-by-case basis for gig workers, which may contrast with how last-minute projects are assigned to full-time staff.

Conclusion

The gig economy is dynamic and evolving, and both HCM and freelancers will need to navigate it together. Thorough documentation of successes and challenges, the development of best practices and education on effective communication will be vital to ensuring the ongoing success of everyone involved.

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