What is the Gig Economy?

If you work in recruitment and haven’t heard about the gig economy, then have you been hiding under a dark, isolated rock? I too have been there, until my Manager started to mention it to me. I had to quickly disguise the puzzled look on my face! I thought it best to google this and see what the fuss is all about. In today’s world we’re used to having so many things at the end of our finger tips. It’s so easy to order what we want, at our convenience. Whether that be over an app or website, and either pick it up or have it delivered to us, either way it’s to suit us. It’s now an expectation to have these services at as an on demand service. We have the likes of Amazon, Argos, Netflix, JustEat and HungryHouse to thank for this.

We want to be able to have control of our own career and there is a shift from typical permanent and temporary recruitment and the notion of people staying with a company for life. We want development and variety and are now more willing to move on if our current employer cannot offer this. In the current climate Employers are focusing even more costs and headcount and need to have greater control. It wasn’t going to be long until this spilled into hiring. In short they are freelance or ad-hoc contracts filled by an on demand service by an app or website. In the US this a hot topic and with more services emerging in the UK its picking up with pace with websites like UpWork and PeoplePerHour.

The likes of Uber and Deliveroo, both come under the gig economy title. Companies such as Mars and Jaguar Land Rover already have projects on looking a freelancing. Times are changing so employers and candidates need to be aware.

• 46% of UK workforce operates on flexible contract (REC, 2016).
• Only 13% of British people think that they will be working in traditional 9 -5 jobs by 2025 (Indeed, 2016)

What’s in it for me?

As with everything there are pros and cons and we need to consider them carefully before making any decision.

Employers

Pros

• Speeds up the recruitment process
• Reducing cost of permanent hire
• Allows greater control and flexibility of workforce
• Access to a global candidate base
• Targeting talent based on assignment

Cons

• New processes need to be implemented
• Reduces loyalty to the brand
• ID/Qualification/Eligibility to work checks harder to complete
• Compliance and data security risks
• No control over health and safety of worker

Freelancer

Pros

• Increased flexibility – hours, location, rates of pay
• Access to global client base
• Control over your career
• Variety of work
• Lack of regulations

Cons

• No employee benefits – sick, pension, holiday, maternity/paternity, healthcare etc
• Lack of job security
• Inconsistent work
• Having to remain competitive with rates
• Feeling Isolated

Everything Changes

As with anything it’s important to weigh up the pros and cons and see what works best for you and your personal situation. As the times are changing, so our expectations and they are rocketing with pace! It’s an exciting time and I love that there are new choices are emerging. Things aren’t as simple as temporary or permanent anymore. We have the power to really shape our careers and build them based on our wants. You as an employer or employee have real control, it’s just thinking about how much control you want? 

How do you feel about this shift in the market? Would you consider this as an option? Are you already way ahead and already doing this? I’d love to hear your thoughts!