With the job market changing, many employees are moving toward freelance opportunities or better yet the gig economy. Companies are planning to change the way they hire to accommodate that shift and to find the right candidates. According to a recent report on Trends that will Shape the Next Decade, “more than 80 percent of large corporations are planning to substantially increase their use of flexible workers.” In the gig economy, the workers include Temporary Employees, Contractors, Freelancers, and Part-Time Workers. Here are the industries that have been most affected by the Gig Economy:
Here are the industries that have been most affected by the Gig Economy. Below is the nonemployed business growth over a ten-year time frame.
Chart 1. Nonemployer business growth, 2003–13
Other services, (includes repair/maintenance; personal and laundry services; and religious, grant writing, civic, professional, and similar organizations.): 923,282
Administrative &support and waste management& remediation services: 738,694
Professional, scientific, and technical services: 588,195
Health care and social assistance: 416,816
Real estate and rental and leasing: 402,758
Arts, entertainment, and recreation: 368,548
Transportation and warehousing: 243,315
Considering all the changes happening and the demand to adapt to the new workforce, many companies are either prepared or starting their preparations for this vast new group. Most companies already have a system in place for hiring this group due to standard temporary or contract employee hiring practices. But as industries change, the way we hire those individuals will change too. Below are some things to consider then when planning and hiring in a gig economy.
Hiring Process: The process may seem easier to hire, especially when there are usually limited hire approvals for a freelancer, contractor or temporary employee. Still, finding a candidate who isn’t already booked may be the challenge. Employers need to find a way to keep this group engaged in order to tap into their complete value.
Benefits: Benefits are changing too with gig workers. Companies don’t have to pay for full benefits like health insurance, retirement, paid sick leave or vacation. This may seem great at first, but leaving a position open to long can be costly. Employees may have to us certain benefits to attract a candidate for those hard to fill projects.
Required Skills: Specialized skills for gig projects will be the most in demand. The tech industry, for example, is seeing more growth in the gig economy to include software and web developers, and project managers. Accountants, finance managers and other individuals offering professional services are projected to grow in the coming years. Those individuals who can manage their projects and perform admirably will be able to demand higher pay.
Professional Recruiting: A reputable recruiting firm can help a company source most contract or temp employees probably faster than companies. If it’s a good firm, they have a pool of talent to work from and can get things moving faster.
If you’re an employer and you’re worried about how the gig economy will impact you, you may want to talk to a professional. We’ve been working with companies for decades, hiring both full-time, temp-perm and temporary employees and can shed some light on what challenges this economy may have on your hiring objectives. Give us a call.
ABOUT THE AUTHOR, Ingrid Moore
Ingrid Moore is the President and Owner of Corporate Resources of Illinois, an employment & staffing agency with over 20+years’ experience located in Schaumburg, IL. Ingrid and her team assist employers with finding the right hire for their business. For more info, follow us on our LinkedIn Company Page, or follow us Corporate Resources of Illinois‘s Google+ page.