How to leverage the gig economy for business growth

Businesses that learn to take advantage of the gig economy will be able to develop at a never-before-seen pace. The gig economy is known to thrive in unstable market shifts where all other forms of employment and recruitment fail. 

For example, companies in all industries halted recruiting during the pandemic to reduce labor costs and maintain the economy. However, the gig economy rose in significance as a result of hiring restraints. What this means for businesses is that they can take advantage of the gig economy and push forward growth even in times when the opposite is supposed to happen. 

If you want to grow your business, you must leverage the gig economy, and I will teach you how to do that the most effectively in this article.

What is the gig economy?

In contrast to permanent positions, the gig economy is a labour market where freelancing or short-term contracts are more common. These include independent contractors, consultants, freelancers, professionals, and temps (temporary contract workers). 

Gig workers and freelancers are found in all age groups, defying the stereotype that they are mostly students. This suggests that not only is the “gig economy” here to stay, but it is the way of the future. 

How the gig economy can benefit businesses

Here are ways businesses can benefit from the Gig economy.

1. Greater employee satisfaction

Workers are increasingly looking for gig employment in order to have more control over their schedules now that advancements in communications technology have made it possible for them to work from anywhere.

This enables individuals to take on many jobs concurrently and have a more varied career that better fits their way of life.

2. An international candidate pool

Employing contractors gives companies access to a wider range of applicants by enabling them to find talent worldwide, which is particularly advantageous for companies operating in labour-scarce sectors.

Furthermore, companies are not bound by long-term agreements or the expenses related to benefits and other conventional employment arrangements.

3. Reduced overhead cost 

Businesses may avoid the high overhead expenses associated with conventional employment, such as office space, perks, etc., by using the gig economy.

To reduce these expenses, a lot of companies are now choosing to have an all-remote staff.

How to leverage the gig economy for business growth 

Here are ways that you can leverage on the gig economy to grow your business.

1. Give workers purpose and flexibility 

When employing consultants and freelancers, companies and HR departments must have an agile and adaptable approach. The ability to work on one’s terms is one of the gig generation’s primary demands. Companies that provide flexible locations, reduced time constraints, and improved virtual technology access are often sought after by independent and freelance workers. 

Research also shows that gigs allow workers to pursue projects that are relevant to them and give them a sense of purpose, in addition to flexibility and autonomy. Compared to their typical jobs, gig workers express more satisfaction with contract and freelance employment. 

2. Review metrics and performance evaluations

Businesses must reconsider how they evaluate performance when recruiting contractors since the same parameters that are used to evaluate the success of a full-time, permanent employee do not apply to contract workers.

This entails revising performance evaluations and KPIs to make sure they appropriately represent the gig worker’s contributions to your business and are relevant to them.

Attempting to quantify and analyze each job a freelancer completes during the day is pointless. An annual performance review with someone you have probably never met would be pretty much pointless. However, a system whereby the freelancer is engaged through regular reviewing and feedback, where they are engaged with the project’s and company’s goals, is much more suitable.

3. Redesign pay scales and compensation

Gig workers will not benefit from the conventional pay scale and benefits package. Instead, companies must give competitive rates based on typical industry-standard compensation ranges and be open and honest about how much they are ready to pay for each job or activity.

Businesses may also provide additional types of pay that are appealing to gig workers, such as paid time off, wellness and health benefits, home office reimbursements, etc.

Living paycheck to paycheck can be challenging, and when these gigs require less structured hours, waiting a whole month to be paid is not desirable. Because of this, it’s critical for businesses that use the gig model to make sure that workers can be paid quickly and easily via the channel of their choosing. 

4. Imbibe a positive company culture 

The corporate culture for gig workers is a crucial element that HR directors should not overlook as the gig economy continues to expand. An inclusive corporate culture will provide executives the ability to evaluate employee experiences up close and provide them with the resources they need to create data-driven initiatives.

The employer and HR are responsible for ensuring that every employee feels appreciated. Open, direct communications, flexibility in hours and location, and learning and job opportunities are all ways to improve employee satisfaction. 

5. Encourage a purpose-driven culture 

Businesses must cultivate a purpose-driven culture to draw in and keep great talent. This entails establishing an environment at work where staff members believe their job has a purpose and that they are a part of something bigger.

Offering them chances for career advancement and development throughout their agreed-upon time with your business is one approach to do this.  

6. Reach out to elite talent pools

It may be challenging to locate the best talent your business needs in your field, particularly when you are vying for the same employees as other businesses.

There are several ways to find talent, and freelancing platforms are one of the most popular ways to go. Although these platforms are saturated with global talent, most times the quality may not be up to par with what your business needs. To vet out the good from the bad, you will have to establish a stringent hiring process, which might be easier said than done if you’re conducting these interviews online. Most times, gig workers are not who they claim to be, and it’s up to you to see through their deceit.  

Working with recruitment agencies is one method to get around this obstacle since they will have a pre-existing pool of reliable and screened people to draw from.

Conclusion

The gig economy can help businesses improve their performance, by providing a great pool of talented individuals at reduced costs. To make the most out of the gig economy, companies must be proactive in achieving a harmonious and productive work environment if they want to remain ahead of the curve and promote expansion. Whether you have already established your business or you’re thinking of establishing one soon, leveraging the gig economy will keep you ahead of the competition.