gig economy for employers
curse or blessing?
Our last blog about the gig economy was about how it is transforming the way we work. In this second post of our blog series about the gig economy we’re exploring what it means for employers.
Currently, a number of global forces are changing the worldwide economy and the future of work.
It used to be that businesses would invest in corporate headquarters or large offices. They would hire and train employees who would work in these headquarters or offices for a number of hours each week. Companies would try to coax as much productivity and value out of their workers as possible, and those workers, in turn, would try to rise from entry-level positions to executive management.
Today, the gig economy is blowing up this traditional model of work.
«tradition is the illusion of permanence.»
manage projects, rather than people and departments
Recap: what is the gig economy? It includes workers who engage in project-based assignments, as well as companies who want specialized skills for specific, short-term tasks. Various definitions around the world exist, most of them define gig economy workers as non-employees. We at F ECTIVE are going one step further: gig work on our platform also includes employees which are doing mostly project work with less day-to-day tasks.
Swiss companies will operate differently in the gig economy. Rather than managing people and departments, companies will move toward managing projects. Each project will require a special set of skills and unique team members. When a project begins, managers will hire the needed team and put them to work.
The gig economy creates the perfect pool of prospective employees for project-based work. A company can run with a layer of managers and administrators, a pool of selected project employees and then hire on the team members they need as projects arise.
This isn’t to say that a company will hire all new employees for each project. A company may have a rather stable set of project employees with core skills needed and add gig workers to manage volatility in workload and required expertise. A company may soon develop a collection of gig economy workers that offer a wide range of skills and abilities, which the company can in essence activate as needed, hiring them (and paying them) when they are needed, and letting them roll off to vacation or take on other work when projects end.
why bother? – business benefits of the gig economy
Why should Swiss business embrace the gig economy? It all starts with cost reduction. Don’t miss out on our blog about cost cutting and how you can keep your employees engaged.
In this blog you can learn how gig economy is helping your businesses overall costs, productivity and responsiveness.
Hiring a full-time employee is an expensive endeavor. You are most often committing to a salary and benefits for that employee. You invest in their training and onboarding — that is, you’re paying them as they learn how your business works. And then you pay them each month. During busy times of year, your workers get their paychecks. During slow times of year, they still get their paychecks.
The gig economy works differently. You hire for the busy times and when you have new projects, and those workers shift off once the busy times end or projects reach completion.
This increases productivity, too. When you choose workers through the gig economy, those workers are engaged in their work. They are on-site for specific tasks, and there are fewer of the corporate and administrative interruptions that can slow down work in a traditional environment.
Hiring processes are slow. Considering decision making and notice period it takes months before new employees can take up their work. Same holds true for a situation, where you need to dismiss an employee. Within the gig economy work and supported by our platform companies can significantly reduce the lead time to a few hours or days and enter flexible service contracts.
Gig economy companies will find that they run leaner, which drives greater overall margin. And, perhaps best of all, these early adopting businesses will find that they are more responsive to change and the evolving needs of the customers they serve.
the role of HR must evolve
Change won’t come easily for businesses that access the gig economy. The role of human resources, for one, will be completely transformed.
The focus will shift from foundational training and long-term career development to short-term recruitment needs. As more gig economy companies come online, the competition for top talent to fill short-term Switzerland jobs will only increase. HR professionals will need to be able to find freelancers and secure members of the gig economy who can deliver outstanding results at cost-efficient terms.
keep up with the market dynamics – join the gig economy now
Despite the evolving industrial revolution and artificial intelligence and robotics taking over traditional human workspace (handshake with the future – the workforce of tomorrow), highly qualified workers will remain important for the Swiss economy.
Are you operating in a fast changing and highly competitive market environment? Don’t let your competition pass you by: get more responsive and agile to the evolving needs of your customers and join the gig economy today.
We are bringing the members of Switzerland’s gig economy together in one place. At F ECTIVE you can find highly qualified professionals: freelancers and consultants, as well as your own employees. And you can keep your employees engaged by offering attractive opportunities that allow them to reap the many benefits of working in the gig economy.
Get started with F ECTIVE, and discover the impact the gig economy can make on your business.