Recruiting and Retention in a Gig Economy: What to Expect in 2017 and Beyond

Entrepreneur Working on His MacBook

Independent workers, or freelancers, have always been part of most industries. For years, professional writers and coders have thrived off temporary positions with multiple organizations. It was simply a game of leveraging an ever-expanding network to find new opportunities.

But in recent years it has caught on like wildfire.

A 2015 Intuit study predicts that by 2020, 40 percent of American workers, or an estimated 7.6 million, “will be regularly working as providers in the on-demand economy.”

While most of the country enjoys low unemployment figures, some questions linger: what will the workforce look like when more employees decide to work independently?

How will Human Resources technology adapt to as more workers turn freelance?

Most employers aren’t concerned with communication, expectation, and deliverables of freelancers. Recruiting and retaining top talent is, as always, at the top of their to-do list.

However, a recent Harvard Business Review article suggests that “Workers who possess strong technical, management, leadership, or creative abilities are best positioned to take advantage of the opportunity to create a working life that incorporates flexibility, autonomy, and meaning.”

In other words, the same top talent organizations are investing in securing.

From an Organization’s Perspective

Since its inception, independent contractors have been widely viewed as dispensable employees who work on one campaign and are then left to find new work. It had become an accepted form of management and, when needed, utilized to temporarily fill a gap in hiring or meet a deadline.

It was an agreement both parties had come to accept, if not begrudgingly on part of the contractor.

With steady-building numbers and a resounding voice, independent contractors are beginning to find themselves in a position to make more demands than ever before. The Wall Street Journal reports that “contractors and consultants… demand to be treated with dignity and almost as if they’re your employee,” vigorously shaking themselves of the former “disposable” identity they had come to loathe.

As more top talent takes the leap into independent work, organizations must reframe their perception of a contractor’s role within the organization—an interesting evolution to watch for in coming years.

An Overdue Evolution for Top Talent

Take the alarmist nature above with a grain of salt.

Employees who excel at their work are simply finding more opportunities; their energies focused on more challenging and interesting work benefits them—and it should.

Positioning themselves towards better financial tides, great talent receives the income, schedule, flexibility, and benefits they seek. In short: they’ve become entrepreneurs within their respected industries.

It may seem uncertain how organizations will grapple with the growing trend, however those who see the opportunities will benefit.

What Becomes of the Workforce?

There is still room for uncertainty, of course. The idea of a gig economy instills thoughts of empty offices, those left performing menial tasks while their contemporaries increase their personal value.

The simplest way to regard the consulting revolution is in terms of career advancement. The consultant has reached a new stage in their career and is flourishing.

Organizations will “expand [the] talent pool to incorporate gig economy workers on vital roles,” according to a recent HR Tech Weekly post.

This, of course, raises questions about benefits, employee relations, training, and more. Questions that HCM software will undoubtedly come to address as the gig economy continues its expansion.

Existing full-time employees will see benefits as well. As recruitment strategies begin to loosen, organizations will focus attention on retaining full-time employees they’ve already invested in. A recent Forbes article offers that “companies that invest as much time and resources in the development of their talent will be the real winners in the coming years.”

Likewise, candidates once overlooked by organizations will be reconsidered as their peers turn to consultant work. The gig economy can benefit every party involved, so long as organizations understand how to leverage the new workforce.

Let the Internal Talent Search Begin!

If the gig economy teaches us one thing, it’s that niche skills are sought by multiple organizations. Employees should (if they have not already) harness unique skillsets to gain from the new order—especially if they are full-time employees.

By harnessing known and new skill-sets, current employees may find themselves trained and nurtured to higher positions within an organization—especially as more and more explore independent work.

2017 inches us closer to before-mentioned Intuit predictions, and they are not likely to be off my much. Start the year off by refining crafted skills and exploring new ones.

Leadership is watching and determined to retain as many employees as possible.


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