How the Gig Economy Benefits Business and Workers

 
 
By Dennis McCafferty  |  Posted 01-05-2017 Email
 
 
 
 
 
 
 
 
 
  • Previous
    How the Gig Economy Benefits Business and Workers
    Next

    How the Gig Economy Benefits Business and Workers

    CIOs and other managers are increasing the use of contingent workers in order to find professionals with specific skills that are lacking in the existing staff.
  • Previous
    Flexible Workforce
    Next

    Flexible Workforce

    50% of the managers surveyed said their organization increased its use of contingent workers over the last five years, and 40% expect to increase the use of these employees over the next five years.
  • Previous
    Significant Share
    Next

    Significant Share

    25% expect contingent workers to account for 30% of their company's staffing.
  • Previous
    Piecemeal Process
    Next

    Piecemeal Process

    37% of the respondents admit to having fragmented governance models to manage the gig workforce.
  • Previous
    Overlooked Obligation
    Next

    Overlooked Obligation

    34% said they don't have confidence in their ability to improve the talent management of contingent workers.
  • Previous
    Outside Assistance
    Next

    Outside Assistance

    56% said their organization uses gig workers to complete projects in which the existing workforce doesn't have the required expertise.
  • Previous
    Cost Containment
    Next

    Cost Containment

    55% of the respondents said contingent workers can help control labor expenses.
  • Previous
    New Era
    Next

    New Era

    50% believe gig workers can help overcome resistance to change in a legacy environment.
  • Previous
    Positive Outcome
    Next

    Positive Outcome

    66% of contingent employees believe the benefits of a gig arrangement outweigh the downside either always or most of the time.
  • Previous
    Benefits of Being a Contingent Worker
    Next

    Benefits of Being a Contingent Worker

    Having job flexibility: 80%, Being in control: 49%, Working from home: 33%
  • Previous
    Downsides of Being a Contingent Worker
    Next

    Downsides of Being a Contingent Worker

    Lack of paid vacation and sick/personal leave: 63%, Not being treated as well as permanent staffers: 58%, Fears about job security : 48%
  • Previous
    Self-Determined Path
    Next

    Self-Determined Path

    56% of the gig workers surveyed said they want to stay in this role during their career, with 52% indicating they would not want to be employed full time.
 

Businesses are increasing their use of contingent workers, thereby creating momentum for what's called a "gig economy,"  according to recent survey research from EY. The resulting report, "Is the Gig Economy a Fleeting Fad, or an Enduring Legacy?," defines a gig economy as "an environment in which temporary positions or contingent work is common, and organizations contract independent workers for short-term engagements." Findings indicate that these employees represent a considerable portion of the total staffing base, as CIOs and other managers seek more professionals with specific skills that are lacking in their existing full-time staff. They also believe that contractual workers and temp hires can help overcome resistance to change, better positioning their organization for business and technological shifts. "The gig economy is supported and accelerated by the rise of technology and by customers who expect goods and services to arrive faster and more flexibly than ever before," the report states. "[Organizations] need access to highly skilled professionals for short-term projects to drive innovation and rapid change. At the same time, workers are looking for work opportunities that offer greater flexibility and variety. Technology is the key enabler to facilitate the nature of supply and demand, where available talent meets organizational need." More than 200 managers and an estimated 1,000 contingent workers took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

Submit a Comment

Loading Comments...
 
Manage your Newsletters: Login Register