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Bridging the Gap between the Gig Economy and HR

By Julia Ryder, Senior Marketing Manager, Jobble

Julia Ryder, Senior Marketing Manager, Jobble

In the next decade Millennial and Gen Z workers will make up about 58% of the workforce. A recent survey by Deloitte found that 43% of Millennials and 61% of Gen-Zers plan on staying in their current job for no more than two years and value work-life balance more than any previous generation. These generational behavior patterns have ultimately shifted the employment market, making companies think twice about their flexible work programs. As the freelance workforce continues to grow three-times the total workforce, the rising gig economy is rapidly evolving the HR landscape. Gig work attracts people of every experience level, and with over 60 million people partaking in the gig economy, understanding the implications of the on-demand workforce is critical for employees, managers, and business owners.

To make informed decisions and find success in this changing economy, both companies and individuals must adapt. Businesses now have the option to build flexible and blended workforces through freelance-marketplaces like Jobble, Fiverr, and UpWork. Almost every industry can benefit by shifting to an on-demand workforce and many are experimenting with the idea. Companies like Microsoft have even launched new gigger tools, like Microsoft’s 365 Freelance Toolkit to facilitate working with freelancers to make it easier for their company to tap into the talent pool.

From food service to healthcare — decentralized, digital-working methods have brought a new type of efficiency to HR challenges. With a large portion of the workforce switching to a work-when-you-want mentality, companies are finding it harder to maintain sustainable retention rates, especially exposed to seasonal employment demands. Particularly vulnerable are the restaurants, retail, warehousing, hospitality, and transportation industries, which carry the highest turnover rates. In 2018, the National Restaurant Association put the average employee turnover rate at 74.9%. While warehousing faced 11,000 separations in 2018, more than the average expected. What may come as a surprise, is the hefty price tag that companies absorb to replace these workers. On average, HR spends $7,000 to replace every warehouse worker that quits. Therefore, companies such as Walmart, XPO Logistics, and Amazon have begun using on-demand platforms to reduce these expenses and increase overall operating efficiencies.           

"The on-demand model proves successful for many HR departments. By 2028, 73% of all teams are expected to have remote workers "             

Attracting the right candidates for the job can be extremely difficult, especially if companies have an increasing demand and immediate roles to fulfill. The more skilled or sensitive the job, the harder it is to find the right person. The Society of Human Resource Management (SHRM) Talent Acquisition Benchmarking Report has found that the average time-to-fill a position is 36 days. Gig recruitment, on the other hand, usually takes a matter of minutes. While quality control is a major concern for HR when it comes to taking on freelance workers, platforms have taken steps to filter talent. For example: on-demand platforms provide rating systems and in-depth user profiles to allow companies to quickly determine whether a worker has the skills and track record needed to properly perform the duties of the job. The availability of these systems of recruitment has allowed HR to obtain the talent they need, without delay.

Whether they are picking up a warehouse gig during weekdays or staffing a music festival during the weekend, freelancers love the customization that comes with creating their own schedules. Of the freelancers that use Jobble’s platform to find work, 78% work for more than four different companies a month. We’ve found that HR departments are at an advantage when it comes to these job-seeking patterns. Companies are able to assemble freelance teams during the months of high demand and disband workforce without taking on extra expenses, guilt or breaking commitments during the months of low demand. Experiential marketing agencies have reported major success utilizing freelance teams.

“We hear from our customers that teams are indispensable. It makes it so much easier for them to hire and manage multiple events in the same region.” – Zack Smith, CEO at Jobble

Many on-demand marketplaces offer communication channels, management tools, and secure payments systems to make it easier for HR to operate accordingly. As an extra layer of protection for employers and HR departments alike, Jobble provides coverage to all workers including: General Liability, Auto, Professional E&O. The company also issues automated 1099’s to facilitate tax filing and conducts background checks on all potential recruits. These types of platform offerings have made it easier for companies to transition over to on-demand labor.

Conclusion:

The on-demand model proves successful for many HR departments. By 2028, 73% of all teams are expected to have remote workers. The best way to prepare for this change is for companies to develop their own flexible work programs by using platforms like Jobble that can provide qualified, vetted talent through an on-demand model and to update policies to align with freelance recruitment. These marketplaces benefit both companies, that have fluctuating employee demands and workers, who require flexibility. As people continue to require flexibility within their work life and authority over their schedules, the trend will continue to gain prominence and reshape the American workplace. 

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