Call it what you may, a new phenomenon has emerged in the world of work, one that according to a recent study was worth $3.5 trillion in 2015 and growing (Randstad Sourceright). The gig economy is what many experts are calling part of the paradigm shift influencing today’s “future of work”. Studies show that “most companies are in the middle of this fundamental shift.” (Global Human Capital Trends), which include the increase use of robotics and AI as well.
MANAGING THE GIG ECONOMY & INTEGRATING IT INTO YOUR TALENT STRATEGY
Imagine the following, there are about 162 million individuals around the world who now freelance/work for themselves, that is an average of between 20-30% of the eligible work-force. And employers are now beginning to adapt this powerful new force by considering “how they design jobs, organize work, and plan for future growth”. (2017 Global Human Capital Trends). But the challenge for the talent management community, is in managing a workforce comprised of people who are not true employees.
It is important to consider them when creating talent management strategies, because this important group is now “actively disrupting labor markets and the economy,” (Deloitte University Press, The Gig Economy: Distraction or Disruption), with the potential to affect organizational growth.
Because all indications lead to the same conclusion, that the freelance or gig economy will increase up to 40% by 2020, it raises a vital question, “How can companies utilize and leverage gig economy markets to complement their talent and workforce strategies?” (Deloitte University Press, The Gig Economy: Distraction or Disruption).
One approach to managing this 21st century workforce is to look beyond their short-term value and explore their strategic advantage.
GIGGERS ARE BECOMING A VITAL PART OF GROWING THE TALENT PIPELINE
According to a recent trends report, contingent talent provides a wide variety of on demand skills and intellectual capital; require little onboarding time, are very cost effective and are “a welcome surge of manpower” that helps an organization achieve immediate goals on key initiatives “needed to drive success”. As a result, more and more human capital professionals are viewing freelancers as an additional stream from which to build their talent pipeline and are adding new contingent talent services to their talent management solutions. To succeed workforce professionals have to be both responsive and adaptive to the transformational changes taking place in today’s workplace and among today’s workforce.