A little while ago, Google announced that by January 2020, the staffing companies they work with would be required to pay their contingent workers health benefits, 12 weeks parental leave, $5000 tuition reimbursement each year, and a minimum wage of $15 per hour. The change didn’t come easily, but as Robert McGuire of Nation 1009 noted, “One of the most influential brands in the world is catching up by recognizing the validity & equality of #freelancers.”1
In the beginning, the Gig Economy grew and flourished out of the Great Recession when employers were frantically slashing costs and payrolls. Unlike downturns of the past, however, emerging technology and mobile platforms made it possible for workers to find their own “gigs” and be their own bosses. Once the recession was over, people had adapted to the new work environment; and so it continues today. By 2020, 40% of the total US workforce are expected to choose working “gigs” over traditional office jobs.2
The Pros for Employers. For employers, the benefits of temporary, vendor and contract workers (TVCs) are pretty obvious.
1. Lower overhead
2. Lower risk exposure
3. Access to a broad range of quality workers across the globe
4. Maximum scaleability and flexibility
The Cons for Employers. On the down side, however, the IRS and Department of Labor are now closely reviewing how employers classify their workers. In 2014, employers had to pay $79 million in back wages to freelancers that the government agencies decided were actually employees. Here’s a brief overview of other issues contingent workers might generate:
1. Lack of availability
2. Lack of company commitment
3. Continual on-boarding
4. Classification2
Contingent Workers in a Tight Hiring Market. According to Tracey Malcolm, managing director and one of the leaders of the Future of Work initiatives at Willis Towers Watson, “Retaining contingent workers typically has not been a priority in the same way it is for full-time staff. However, in the shifting employment environment, taking a more proactive approach with contingent staff is becoming increasingly important.” Malcolm suggests HR, legal and management acknowledge the changing workforce and proactively establish policies for contingent worker interaction.3
Tips for hiring in the Gig Economy. Since today’s worker can just as easily work for themselves as for a company, projecting a progressive company culture and flexible employee experience are more important than ever. Here are some other tips to consider. 4
- Market Smarter. Job descriptions should be free of bias, not too short or too long, and interesting enough to capture the attention of a wide range of candidates. Headings for job postings should be A/B tested for ultimate appeal. Companies should strive to have well-designed career websites and Applicant Tracking Systems where they can promote their brand and simplify the candidate experience. Recruiters should use the wide array of advertising opportunities available to them to reach both active and passive job seekers.
- Spotlight Employee Experience. Leverage your career website, blog, and social media to put your company culture in the best light possible. List features and benefits of working at your company such as flexibility, growth, and remote work opportunities. Post positive pictures of your employees at work and play, and include employee testimonials. Videos can also provide a compelling platform for employee experience. Highlight flexibility, growth and remote work opportunities if they exist.
- Keep it simple. Now that you’ve taken the time to write better ads and promote an appealing company culture, don’t lose applicants with a difficult and lengthy apply method. Past studies indicate that applications taking less than five minutes to complete result in 250 percent more applications completed.
- Look ahead. With a tight labor market, the gig economy, and a high churn rate for workers, recruiting can’t be a one-and-done process. It’s a necessity to keep your funnel full of candidates and and keep candidate data current so that it can be easily accessed, filtered and targeted as needed.
- Use technology. Not only do new technology platforms allow workers to participate in the gig economy, technology can also help recruiters and hiring managers. Routine day-to-day tasks should now be automated so that you have time to use your experience and creativity for building relationships with candidates and finding new ways to source open positions. 4
In Conclusion. Current events at Google suggest that it’s now in the best interest of companies to consider the talent experience of all of its workers including employees, contractors, freelancers and contingents. Competing for workers in the expanding Gig Economy will require insight, creativity and a human touch.
By Deborah Thoben
2 https://recruiterbox.com/blog/freelance-vs-fulltime-pros-cons-hiring-independent-contractor