The Canadian workforce has changed tremendously over the past 50 years. The economy shifted and grew, technology took over and the average worker is no longer average. These changes have allowed for the rise of the non-traditional worker, and the emergence of the “gig economy”. The gig economy is “a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.”
Is it just a trend?
What began as a trend, has now become the norm, and people managers from across the organization have to learn to adapt. A recent study by a Canadian HR firm revealed that non-traditional workers, which include independent contractors, on-demand workers, remote workers as well as other arrangements, already make up between 20 and 30 per cent of the workplace. According to Intuit by 2020, 40 percent of American workers would be independent contractors. This sort of increase is very likely to happen in Canada as well, as the gig economy becomes a more accepted employment model across the country.
Overall, there are many reasons for the rise of short-term and freelance roles. The most common reason is the rise of technology and the digitization of roles that were previously done by employees. Other influences include financial pressures on businesses leading to further staff reductions and the entrance of the millennials into the workforce. In many ways it can be a win/win for the employer and the employee. In a gig economy, the organization can save resources in terms of benefits, office space and training. They also have the ability to contract with experts for specific projects who might be too high-priced to maintain on staff. From the perspective of the freelancer, a gig economy can improve work/life balance. For workers, it also lets them to choose jobs they are interested in.
4 tips for managing gig workers
- Treat the gigs the same as your payroll staff. Temporary workers are often treated like second-class citizens. At many organizations they are not included in planning sessions or even social events. These actions make it seem like they are simply hired hands. This attitude does not allow you to tap into their broader knowledge and experience, nor does it entice top talent to stay.
- Always provide coaching, recognition and feedback to your temporary and freelance workers. The need for recognition and feedback is not limited to full-time salaried staff. It is a human need. Providing positive reinforcement motivates and engages while ensuring that the positive behavior is repeated and shared.
- Train your managers on the similarities and differences between workers. They need to understand the importance of coaching and feedback. They also need to become skilled at assessing talent and performance. Top talent needs to be retained, moved to more challenging assignments, not let go at the end of the gig. The longer you can retain top talent, the more return you will get out of the recruitment and assimilation work.
