If we are talking about the gig economy we need to understand who are the ones who actually build this workforce, right?
So, if you look closely, you’ll notice that a lot of workers around you are indeed a part of the gig economy. The cab driver you came home with, the food delivery executive, or the part-time cake baker across the street, all build up the gig workforce which give rise to a Gig Economy. A gig economy is nothing but a free labor market where temporary positions are filled in by independent workers who deliver short-term commitments. . Each gig becomes a unique performance in their career, collectively painting a vivid picture of a workforce that values flexibility and autonomy.
In the ever-evolving landscape of work, a noticeable shift is happening as we move away from traditional employment structures towards a dynamic gig economy. Gig workers are taking centre stage, actively participating in short-term projects through digital platforms, creating a rich tapestry of diversity in the employment landscape. But who is responsible for overseeing their functionality? The HR. And as this new age economy is growing, it is important to recognize the role of HR in it. Without an efficient human resources management system, there might arise various challenges. The workers might be underpaid/overpaid, they might not be adhering to legal compliances or maybe they’re overwhelming the current workforce in the company. Nevertheless, let us explore “The role of HR in the gig economy” in various aspects.
The first and the most important aspect can be seen during Talent acquisition and recruitment as hiring gig workers should be fast, not slow. The process of finding, choosing, and welcoming them onboard should take weeks, not months and HR technology can help them out. Just like Uber has a rating system, HR could use a special system for finding the right candidates or freelance workers.
The second role can be seen during Performance administration as it’s the duty of HR to administer an employee’s performance and figure out ways to improve it. However, gig workers are not employees. Their performance evaluation has to be different. The team manager along with the HR need to work out a method that measures short-term objectives and outcomes.
The third aspect can be seen during Retention and Engagement because when working with the gig workforce, as an HR you should not focus on providing rewards or incentivize them to stay. Rather HR’s need to create a culture or an environment where they want to come back to work.
Furthermore, while seeing the changes in the Gig Economy, HR professionals need to implement strategies to address such changes, like :- Establishing performance metrics where HR needs to clearly communicate project objectives and timelines while delegating work, to ensure alignment and accountability. Additionally, defining measurable goals and key performance indicators (KPIs) to evaluate performance can help further.
Managing an efficient talent pool can be another strategy through continuously networking and engaging with a diverse pool of gig workers to have access to a reliable talent pool for future projects as well as having a competent candidate screening process will save time and improve the quality of work.
The last strategy can be Developing gig-specific policies that clearly define gig workers’ rights, responsibilities, pay, and benefits, while keeping up with labor laws. Stay updated on best practices and consult legal experts to ensure proper classification and compliance. This way, gig workers know what to expect, and your company stays legally protected.
In conclusion, the gig economy has transformed the way companies approach employment and productivity. It offers flexibility, convenience, and new opportunities for workers, while also presenting benefits and challenges for HR professionals. The gig economy is projected to continue growing and can contribute to the economic development of India by addressing income disparities and reducing unemployment. HR professionals play a vital role in adapting to this new paradigm. They can effectively manage gig workers, embracing scalability, leveraging specialized expertise, and fostering an agile workforce while addressing challenges like limited control and preserving team culture. By embracing the gig economy and harnessing its potential, HR can contribute to the growth and success of organizations while promoting inclusivity, diversity, and professional development in the workforce.
By Siddhi Goel, HRDC (2023-24)
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