Should large companies be a part of the gig economy for profitability?



By Mamta Wasan
Today, we are seeing numerous changes and each of them are coming to the fore rapidly. These changes are not just in technology but also in the type of workforce. There is a requirement of the workforce to be more skilled as well as specialised. Companies are looking to get work done with a clear start and end time. On the other side, employees are looking for greater flexibility in the workplace. It started with women in their childbearing and rearing phase and then Gen Z asking for work-life balance, purpose and challenge. This situation has emerged and now is known as Gig economy.

If one looks at it holistically, work can be seen at the two ends of the spectrum. Casual and contractual work of a low skilled nature has been in practice from time immemorial. But now it exists at the upper end as well. As work design and structure changes, activities can be done through projects that are completed in a time-bound way. For some tasks, companies can hire a part-time or temporary worker assigned to complete a challenging project. They can, thus, move from company to company and from one project to another in their area of expertise like consultants. With this, a win-win situation is created. This is exciting for the employee and it fulfils the need of a company at a one-time fixed cost.

When it comes to large companies, they need speed and agility to compete. They also need to focus on the top line and the bottom line to be in the top few. For that, they need a highly agile and nimble workforce that brings in the latest technology and expertise. They also need to implement strong workforce management planning to enable aggressive growth plans. For them, a way to enhance productivity and achieve goals is to actively engage in the gig economy for specialised roles and low-end contractual roles. It is more than likely that they would have both of these elements at either end of the spectrum.

At the lower end of the spectrum, a healthy mix of full-time employees and contractual workers allows them to manage the swings in the economy. At the upper end of the spectrum, some of the examples are a compensation exercise in the human resource function, an Artificial Intelligence project on a factory floor, a change management project during a merger or acquisition. These are not long term, on-going assignments but one-time activities that need expertise and depth. It is once again more economical to tap into the gig economy to fulfil these.

We now even have companies that allow the gig economy workers to list their specialisation and connect with prospective assignments and companies. Such a workforce is also called an agile workforce or freelance workers. With the advent of technology platforms, this disruptive type of workforce can be easily accessed by providers and recipients of their services.

This allows the company to accurately make financial projections of work, which would most likely be a one-time expense allowing the multi-generational workforce to live the way they want. Issues of engagement won’t arise as these freelancers are already engaged. It also brings in people with robust experience having worked with different companies and multiple challenges. In my view, it thus works at either end of the spectrum as long we have this as part of a mix of full-time employees. In the end, these type of employees will return if the companies have showcased themselves as great employers.

In the end, the story of lifelong employment is drawing to an end and the gig economy is here to stay. All companies, large or small should make the best of such services. Needless to say, large companies should and could easily lead the way. The gig economy is poised to grow and the way we work is getting reshaped. The focus is truly on the value that a gig worker brings. And to ensure employability, a gig worker will have to continuously evolve and learn.

The author is the People Lead - India, APAC & Global Process Improvement at FIS
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