The pandemic has undoubtedly impacted many aspects of our lives and businesses, prompting us to reassess our goals and strategies. One significant shift in cultural perception has been the rise of the Gig Economy, which has led to a global decrease in the number of permanent employees. The "gig economy" refers to the trend of individuals taking on short-term or freelance jobs through digital platforms, rather than having traditional long-term employment contracts. The Gig Economy has provided us with a range of online platforms that allow us to earn money in flexible and creative ways, leading us to re-evaluate our current needs and professional development.
In Southeast Asia, the gig economy has seen significant growth in recent years, with the rise of digital platforms such as Grab, Gojek, and Foodpanda. These platforms offer services such as ride-hailing, food delivery, and courier services, which have become increasingly popular in urban areas. Studies show that approximately 15-25% of the global workforce comprises Gig workers, and this number is expected to rise to 35-40% by 2025, particularly as Generation Z becomes a significant part of the Gig workforce and working population in the future. Therefore, businesses need to consider why and how they should hire Gig workers.
Why should companies hire Gig workers? There are several reasons:
Efficiently meeting businesses' needs - better production output- As Gig workers work on a contingent basis within a specific field or industry, they are commonly known as highly specialized labor in their specific area with proven records. As they have a considerably better potential for increased earnings, as they have complete control over the number of projects they take on, they are more committed and can produce strong results within a specific timeline. In return, this can immensely help towards meeting businesses' needs efficiently.
Keep up with hiring trends - According to a study from Forbes, 3.2 million individuals often work in the on-demand economy, with an anticipated rise up to 7.6 million in just five years. As the hiring curves and market uncertainties are fluid at the moment, combined with the evolution of the digital era, businesses must be prepared to make the required adjustments to draw in workers from all demographics, such as Generation Z, Millennials, and seniors.
Cost-effective - Financial restructuring among companies has been a major and common topic in businesses during and after Covid. According to research by Field Engineer, employing Gig workers can reduce up to 60% of costs compared to employing a full-time employee. Businesses will not have to bear expenses like bigger office space, laptop and technology equipment, benefit packages, paid leave, retirement plans, personal benefits, or allowances, and instead can allocate resources to other needs of the business.
How can businesses recruit Gig workers?
A call for strong employer branding - Undoubtedly, one of the main criteria job seekers consider when looking for work is the overall brand and branding of the company. Although the gig economy draws people based on their unique individual skills and lifestyle preferences, if an organization can develop a desirable employer brand that values its employees, individuals may be influenced to consider working for the organization. When hiring in a Gig economy, it can be difficult to hire candidates that understand the principles of your business. The organization's principles, or the reason you exist beyond just making money, should be established in your employer brand for contingent talent. Employers who actively manage their employer brands are more likely to receive applications from active job seekers within the Gig economy.
Investment in technology - Keeping in mind that there is a fine line between spending and investing, the Gig economy is heavily reliant on technology. This has an impact on future hirings, as it makes it easier to access businesses via mobile phone to conduct interviews, contracts, recruit, ensure deadlines are met, and even make payments. It is crucial for employers to be tech-savvy in order to effectively recruit Gig Workers for their projects. Some businesses are making technological decisions quicker than others to hasten implementation, which has been proven to produce clearer returns.
Investment in L&D - With the rise of the Gig workforce, it is significant to consider shaping a different structure of L&D. They often require a different L&D perspective because they have modern abilities like digital platforms and diverse working habits. Businesses are strongly encouraged to reconsider their form of interaction and integration of this particular workforce. Without being committed by long-term or full-time contracts, the content, approach, and delivery times of L&D materials can be adjusted to meet a company's needs and capabilities.
Sustaining and growing relationships with Gig workers - Establishing a relationship with Gig workers should be equally as essential as doing so with full-time employees. Similar to a successful marketing campaign, your employer brand should start with awareness and conclude with loyalty. Today's Gig worker may one day make a fantastic applicant for a permanent post. Thus, it's crucial to cultivate relationships over time and ensure that employers give them priority consideration when filling any permanent posts. Given the connection with this candidate, it's easier to understand their personal motivations while also saving costs and time.
Utilizing recruitment agencies - Recruitment agencies specialize in matching businesses with qualified candidates, and they can be a valuable resource for finding gig workers. They have access to a large pool of talent and can provide businesses with a range of options to choose from based on their specific needs. Recruitment agencies can also take care of the administrative tasks associated with hiring gig workers, such as screening, interviewing, and negotiating contracts. This can save businesses time and effort in the hiring process, allowing them to focus on their core operations. Additionally, recruitment agencies can provide businesses with valuable insights into the gig economy and help them stay up-to-date with the latest hiring trends and best practices.
Ultimately, by incorporating Gig workers into business organizations, this can save costs and time with the labor-intensive hiring and selection procedures. To become a Gig worker or to hire one is becoming easier with modern, user-friendly digital platforms and apps. By adapting and integrating the Gig economy within the current workforce, employers can be more flexible and better react to market volatility. However, finding the right Gig workers for your business needs can still be a challenge. If you are looking for assistance in hiring Gig workers, you can contact us for help with identifying, recruiting, and onboarding top talent in the Gig economy. Our recruitment agency has the expertise and experience to help you build a team of highly skilled and specialized Gig workers who can help you achieve your business goals efficiently and effectively.