How can your business benefit from the gig economy?

How can your business benefit from the gig economy?

Millions of people and thousands of businesses have already benefited from the ‘gig economy’. The ‘gig economy’ does not have one final agreed definition. However the Department for Business, Energy and Industrial Strategy (BEIS) and the Institute for Employment Studies have defined it as: 

Involving the exchange of labour for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers, on a short-term and payment by task basis. 

The term is therefore suggestive to each piece of work being an individual ‘gig’. Companies such as Uber, Deliveroo and AirBnb use this. However, the gig economy goes much further. With a market full of IT experts, computer programmers, graphic designers, and many more. All of which are looking for the benefits that come with being a gig worker. These include things like flexibility and the ability to select projects that interest them. 

What is the Gig Economy?

The gig economy empowers people to manage their time, work and how much they earn. The difference is they do not need to commit to traditional long-term contracts. The growth of the big gig economy has been largely influenced by technology, and the changing work culture across the world. More so within the last 12 months due to COVID-19. Work processes are changing to support the agile, flexible and mobile workforce. 

So, how can your business benefit from the gig economy? 

With new technology constantly emerging. New opportunities have arisen for millennials, minorities and those living in developing countries. This consequently means there is more talent for you to choose from.

The digital age increases the ability for people to work remotely. I’s no surprise that a study from UpWork concludes that 92% of millennials say they want to work in remote locations. In addition, millennials also say they no longer want to work the standard nine to five. 87% of those surveyed say they want to work to their own schedule. If your business structures itself to embrace the gig economy, you will appeal to millennials and younger generations. This therefore means you can attract and make use of their fresh talent.

Nowadays, a call to Asia has exactly the same quality as a local call. Therefore, why not choose the best talent from a global pool, as opposed to in your region? The gig economy allows you to bring people in on particular projects, utilising their unique knowledge. This therefore means their contribution will increase your competitiveness in your industry and help you stand out. 

The time taken to hire a gig worker is considerably shorter than the time taken to hire a traditional team member, and in addition, often you are paying on results and can define payment terms and deliverables! 

Recruiting the correct person to join your team involves many steps. Starting from the recruitment stage, you not only need to find someone with great talent, but someone that will fit in with your workplace culture. This is inclusive of your existing team. This will in turn ensures maximum productivity. 

The induction process

Once they have officially been hired, the process doesn’t stop there. They then have to go through an induction process to get fully accustomed to the way you do things in your business, as well as undertake training from fellow team members or even yourself in order to get to grips with IT systems, such as the software used for certain tasks. 

This will come as no surprise, but with a gig worker, you will be able to have them working on a project in the time it would take you to recruit the perfect fit for your team. As an interim, freelancer or consultant, they will get to know the workplace culture and team, so should you wish to employ them at a later stage, this process will be a lot simpler. 

On top of labour costs you can save on overall costs with gig workers bringing their own equipment to use, as opposed to you providing them with equipment. A great example of this is a taxi company, such as Uber, not actually owning any of the vehicles used to transport passengers, saving them a large amount of startup costs. Another example is AirBnb not owning any real estate, but instead relying on their ‘gig’ workers to provide them with their own properties to rent out.

Conclusion

To sum up, you have the ability to create a power team! Utilising the market available to you allows you to pick the best people to work on projects in order to get the best results possible. From freelancers, consultants, interim and part-time workers, more people are at your disposal. It is the way to go for businesses that are all about forward thinking. So, what are you waiting for? 

Chew on this: 

How could gig workers impact your business? 

 

Author: Maryan