In this rapidly-changing world, the HR industry has grown in many unexpected ways. Increased globalization, tougher competition, new organizational hierarchies, new ways of assigning work are some of the pressures on today’s organizations. To be in HR, one has to be highly updated about the continuous changing environment. Also, about the hiring and employment laws which change frequently. These days, there are so many trends going on in the HR industry to recruit people for the companies. Some most trending are “Gig Economy” and “Contract Workforce”.
To elaborate, Contract Work is a type of relationship employment with the company for a shorter or limited period. Contract workers are highly skilled and assigned for the required assignments. Payment is dependent upon the quality of work and the job is considered to be non-permanent. Gig economy is flexible, involving clients and customers through an online platform. Uber, Zomato, Swiggy, Ola etc. are some of the examples of this new trend in the economy.
Estimates show that one third of the working population fall under gig capacity in America. The average organization in the US is made up of 18% of the contract workforce. And it is also speculated that by 2050, 50% of the US workforce will be of freelance workers.
Contract workforce helps to fill the skills gap for the company. Now-a-days, it has become very difficult to find workers for critical skills. Contract workforce are not only especially skilled for the required job but also adapt themselves for the new challenges. There new ideas help to drive the business forward and by the time, they can be hired as full-time employees as per their performances and skills.
In terms of flexibility, gig workers are the best way out for employers who want to expand into new markets or require national footprint for their business but can’t afford to hire full-time workers. It is cost effective and also, workers can be dispatched at any point of time. They aren’t even required to come to office, just receive notifications via mobile tech and upload work completed after the completion of the assigned job. As simple as that. Gig economy helps the employers to lower the company overhead and speeding up production time. By hiring the skilled person for a specific job, employer not only gets the quality work but also saves time and money.
A report shows that approximately 70% of the Indian corporates have used gig workers at least once for major organizational requirement in 2018. Further, the report shows, that almost 45% of HR would hire gig workers to supplement skills to the existing workforce, 39% would hire to reduce the cost and 10% to fill the temporary workforce space.
CHROs in India are not just limited to focus on day-to-day activities of HR. Now-a-days, they are expected to focus on high level business guidance and leadership for the future of work. The strategies created by CHROs will ultimately help companies expand need to crack new talent needs and hire contract workforce as per the needs. Since the contract workforce can make up to 30 percent of the company’s workforce, organizations should carefully consider the circumstances under which they could be screened as full-time employees.
As per the reports of G2 Crowd, there is an estimation that businesses will increase their employ engagement by 45%. And HR will help to carry forward the change. The contract workforce is considered to be an asset for the CHRO. HR teams give the clear performance goals, secure communications systems, and the specific training and support to make the workers productive.
Gig workers and contract workforce are in huge demand as they are more flexible, easily adaptable, cost effective and skilled. Thus, we can say that such workforce will cover nearly 80 to 90 percent of the industry in the near future. Businesses need to change with the constantly-changing environment and trends to stay in the market for a longer period of time.