The Gig Economy: 4 Advantages of Hiring Gig Workers
As a business owner in today’s digital age, the ways to conduct business are constantly evolving. Staying ahead of the curve requires that you identify and adopt new practices all the time. One area business owners need to examine is the hiring of on-demand workers.
There’s no question that the future of work is heading in the right direction with gig workers. According to Guild, more than a third of the workforce identify as on-demand workers and by 2027, and the majority of American workers will be flexible workers.
There are several factors contributing to the rise in on-demand workers in the workforce. Thanks to the digital age we now live in, gig workers can pick and choose from temporary jobs and projects worldwide, while employers can select the best candidate for specific projects from a huge pool of talent.
As a result, gig workers are changing the future of work with the gig economy. Here are 4 advantages of hiring gig workers:
1. No Vetting of Candidates
Vetting candidates is time consuming. All that checking, screening and vetting, and the candidate hasn’t even walked through the door yet!
Once potential candidates are selected, the interview process begins. Business owners spend many grueling hours posting jobs, sifting through resumes, vetting candidates, and interviewing, but thanks to the gig economy, new technology provides business owners an easier way to hire by selecting on-demand workers from a large pool of talented candidates. Already vetted and screened, they will hit the ground running as soon as their shift starts.
2. Save Money on HR Administrative Tasks
Vetting and interviewing costs are just the beginning when it comes to new employee expenditures. Business owners can expect to spend a lot of time and money onboarding new hires, including offer creation, sending out and processing paperwork, various costs associated with welcome packs and contracts, etc. Because working with on-demand workers means no to little onboarding, there’s money to be saved!
How much can you save? According to the human resources consultancy, HR Onboard, it costs about $400 to onboard each new employee. Reducing the number of employees hired each year with the use of flexible workers guarantees lower onboarding costs.
3. Lower Company Costs
Using gig workers can reduce overhead costs for business owners. Forbes reports that the cost of benefits alone, make up for more than 31% of the average employee’s total compensation package. This is significant! Businesses who use freelance workers are able to avoid these costs. Business owners don’t have to pay benefits or taxes for gig workers. In fact, the cost can sometimes be used as a tax deduction if classified as a normal business expense.
4. Stay Ahead of the Hiring Curve
According to Business.com, the gig economy has disrupted how we work, who we work with and where we work from, forever. For businesses that want to keep up, here’s what you need to know:
- Millennials and Gen Z’s want to be in control of their work life, demanding flexibility and balance in their jobs. Companies that accommodate this desire can attract better talent and more people. 87% of millennials want to work according to their own schedule.
- On-demand work, from part-time jobs to temporary gigs, is skyrocketing. Forbes reports that there are 3.2 million people who work regularly in the on-demand economy. That number is expected to reach 7.6 million in five years. According to the study, temporary workers could comprise 40% - 50% of the workforce by 2020.
As the digital age continues to revolutionize the way we conduct business and fill jobs, business owners must be willing to make the necessary changes to attract all spectrums of the workforce, including Millennials, Gen Z, and retirees. Today’s employees want flexibility, work-life balance, and the opportunity to pick and choose jobs and the projects they want to work. Remaining flexible and innovative, and matching the needs of the business to the desires of flexible workers, will allow you to take advantage of the new opportunities the gig economy presents.