It’s hard to believe that the term “gig economy” is only a handful of years old. Especially considering that since the phrase was coined in 2009, the gig economy—and the growing number of contract (or “contingent”) workers employed on a freelance or short-term basis, has already changed the U.S. economy and the landscape of work itself. Consider two stats:
- 36% of the U.S. workforce already is classified as independent and that number is only growing.
- Between 2017 and 2021, the number of people who collected income from platform gig work (such as driving for Uber or delivering for Grubhub), more than tripled.
So, what does all this mean for business and productivity? What does it mean for hiring, retention and workplace experience?
We’re taking a closer look at the realities of this new age of flexible working. What challenges are employers facing? And how can workforce software solutions like the WorkForce Suite help businesses support all their employees, no matter how they contribute?
Here’s 5 Things You Need to Know
1. Work Itself is Becoming More Flexible
It’s no secret that work is changing. By now, most of us have sat through enough Zoom meetings to know that watercooler chit-chat isn’t what it used to be. According to Forbes, as of 2023, 12.7% of full-time employees now work from home, whilst 28.2% work a hybrid model. By 2025, though, they estimate that 22% of people will work full-time from home.
Of course, less physical time in the office means less in-person time between colleagues, which can impact workforce experience, training, interactions between staff and managers and how people see themselves within their workplace culture.
And don’t forget, those figures are for full-time employees and don’t account for the fact that a growing number of workers are choosing to go it alone and take their talents to the highest bidder. Whether they’re working as freelance designers or developers or earning extra cash by driving for Lyft on the weekend, contract work is on the rise.
All this raises some serious questions for employers:
- How do you communicate with staff who are not only spread around geographically, but are temporary by design?
- How do you share up-to-date info, protocols and workforce operations?
- How do you track time and measure progress?
Further on in the blog, we’ll discuss how innovative workforce software serves as a solution for these challenges designed to keep you agile and competitive
2. Contract Workers Allow You to Meet Specific Needs
A huge benefit of the gig economy and the growing access to specialised skilled workers is that it allows employers to target and meet specific needs. More contract workers in the marketplace means that much of the elite-level talent in any industry is available to the businesses who need them and for only as long as they need their services.
In this model, companies can approach staffing with a more fluid mindset and scale up or down as needed depending on incoming projects and workflow. This comes with the added benefit of naturally helping employers manage labour costs from quarter to quarter, or even month to month, instead of fiscal year to fiscal year.
3. More Contract Workers Means Higher Turnover
When a greater percentage of your workforce is on a non-salaried, project-by-project basis, you’re going to have higher turnover. It’s simply harder to build long-term commitments with workers when it’s so easy for them to move on to the next best thing.
There’s also more competition for talent, which means that the gig economy is helping create more of a seller’s market that benefits workers with specialised skills and can put employers as a disadvantage.
Hiring contract workers on a rolling basis also makes it difficult to create a steady, streamlined approach to onboarding, training and orienting new staff. It also puts pressure on the personal relationships at the heart of quality collaboration. Ask any boss and they’ll tell you how important trust and colleagueship are to running a successful business. Better relationships lead to more loyalty, increased satisfaction and longer commitments.
The opposite of that might lead to, well, the opposite.
4. Clear Expectations Build Better Working Relationships
But here’s the thing. Just because an employee is temporary doesn’t mean they aren’t loyal. And it certainly doesn’t mean they can’t be successfully integrated into a workplace, build successful working relationships and have an experience that’s mutually beneficial to them and their new employer.
It does mean, though, that businesses need to learn how to work with and meet the unique needs of casual workers. It means they need to find ways to become more flexible with how they welcome, train, and communicate with their staff.
They need innovative solutions tailor-made for this unique moment.
5. The Right Technology Can Help
Workforce software solutions like the WorkForce Suite can immediately take some of the pressure off and help employers be more flexible, organised and personalised when it comes to supporting an evolving workforce. Here are some of the benefits:
- Sync and share rosters for more efficient, fruitful collaboration.
- Manage compliance with fewer headaches and slowdowns.
- Easily track time and attendance.
- Minimise risk by easily adhering to labour regulations.
- Improve workforce experience through easier communication channels.
Ready to Learn More?
Sign up for a workforce software demo today to learn how the right technology can improve the worker experience and productivity.
