The Rise of the Gig Economy and Its Impact on HR Practices

No matter whether it be college students driving taxis for an app-based taxi service or stay-at-home moms assisting someone assemble their self-assembly desk, gig work has reshaped how individuals make a living - with numerous implications for HR.

Photo by Markus Winkler

Only a minority of those employed in gig jobs consider it their main source of income.

Streamlined Workflows

Streamlining is the practice of refining business processes by eliminating unnecessary steps or risks, increasing employee efficiency by decreasing time and effort required to complete tasks, using methods such as automation, self-service and other technological enhancements to do so. When properly implemented this can save organizations money by decreasing employee headcount required for specific tasks.

The rise of the gig economy has presented HR teams with unique challenges. Since gig workers are typically not permanent employees, and therefore do not qualify for traditional benefits such as health insurance and paid leave, this creates new difficulties when it comes to benefit enrollment, payroll processing and training practices - not to mention keeping an eye on short-term contracts that often don't expire!

To address these challenges, it's essential that HR processes are streamlined. To do so effectively, identify areas which could benefit from improvement and devise a project plan to achieve your goals. Also important: get buy-in from managers and line of business employees as this investment in their organization's future success will create greater organizational resilience. Once established, streamline HR processes provide the foundation for improved resilience within an organization.

Increased Flexibility

The gig economy is revolutionizing traditional workplace structures and drawing in new talent to HR practices, offering both opportunities and challenges for HR departments. One such challenge lies in meeting flexible onboarding needs: HR departments need to quickly onboard temporary workers for training before tracking completion - this requires altering hiring protocols as well as more robust tracking mechanisms to safeguard intellectual property while guaranteeing completion.

Another challenge facing gig workers is ensuring they are paid fairly, especially as many are women, minorities or immigrants. Furthermore, it's vital that gig workers have access to training opportunities, career advancement opportunities and healthcare benefits.

Final note on maintaining a positive working culture within the gig economy: this can be accomplished via virtual team building activities, recognition programs and an encouraging company culture. Furthermore, it's crucial that gig workers remain informed on any relevant legislation regarding gig workers.

With the gig economy's rising popularity, HR teams must adapt their policies and procedures to reflect its ever-evolving workforce. By taking time to review current policies, gather employee feedback, and implement necessary adjustments where applicable, HR can become an invaluable partner in this evolving work environment.

Leverage Consumer Expectations

COVID-19 pandemic has shown many people the benefits of freelance work -- whether that's being a jazz musician doing gig work, content writer pursuing freelance opportunities online, or high school student taking on odd-jobs through food delivery apps. With modern workers increasingly distrusting traditional employers due to college debt problems and an increase in gig work opportunities.

Many people turn to gig work to supplement a full-time salary or because they cannot find traditional employment, as well as due to advances in technology that enable strangers to hire people through app-based platforms like Uber and Airbnb for tasks they require completing. These trends are being fuelled by innovative platforms that make this type of work more accessible than ever.

However, these technologies also make it easy for employers to misclassify workers as independent contractors instead of employees, thus enabling them to pay gig workers less and provide fewer benefits. Some states, like California, have taken measures to address this problem by passing laws exempting app-based workers from foundational labor laws.

As the Gig Economy continues to boom, it's essential that counties understand its effects on workers and create policies to support their rights. This means ensuring people have access to tools necessary for managing their work - whether this means laptops, phones or tablets.

Increased Risk

The work environment is shifting quickly, and gig work plays an integral part. HR professionals must adapt their practices accordingly by taking advantage of advanced HR management software, creating flexible workforces and encouraging a smooth transition from traditional work to gig work.

Gig workers provide numerous advantages to businesses, including reduced overhead costs and enhanced brand awareness. Furthermore, freelancers can help businesses expand into new markets by working with freelancers native to each target country; ultimately this saves on recruitment expenses and training permanent employees.

But hiring gig workers does not come without its risks. HR professionals must ensure they comply with employment and labor laws to avoid being subjected to lawsuits; to this end, HR teams should consult legal experts as often as necessary and subscribe to local news alerts regarding employment law changes.

As freelance and contract jobs increase in demand, HR departments' need for advanced HR management software will only increase. This technology will allow HR departments to streamline workflows, monitor employee performance more closely, facilitate communication with freelancers and manage challenges associated with engaging gig workers such as creating flexible job descriptions or developing specific performance management frameworks tailored for them.