Regardless of your sector, you have come across mention of the ‘gig economy’ — the growing trend where organiztions contract with independent workers for short-term employment. The gig economy is not new; it’s a metamorphosis of temporary staffing. What is new however, is the scale and speed at which technology is allowing the gig economy to evolve and deliver.
The US spent $792 billion dollars in 2015 on contingent labor alone. There are 44 million people engaged in gig/contingent work in the country — that’s 34% of the American workforce, and that number is projected to be 43% in 2020.
The rise in on-demand workers has been fueled by the power of the internet and an increasingly mobile society:
- Many types of work can be done from anywhere, so that job and location are decoupled.
- Technology enables engagement around projects or volume staffing as needed and at short notice.
Now, a new wave of software providers have conceived and built online staffing enabling technology (OSET) — human cloud solutions tailored for the staffing industry. They allow recruitment companies to “uberise” their candidate database without having to develop such technology themselves.
PREMIUM CONTENT: Workforce Solutions Webinar – The Gig Economy and the Changing Workforce
According to a new study by Deloitte, more than 50% of businesses see freelancer hiring as a part of their short-term future. But what does the rise of the gig economy mean to your staffing firm and how can you compete?
Advantages of staffing companies over new pure-play gig economy platforms
Relationships: You have assets that the on-line disruptors don’t have: relationships. The reputations of staffing organizations worth their salt rely on them selecting potential workers with the right skills and personality to fit with a company’s role, team and culture. You know and understand both sides of the equation, often with long-standing relationships nurtured over a period of time.
Staffing companies can handle the full recruitment cycle from candidate attraction, interview, hiring, onboarding, time capture, payroll, taxes, as well as being able to advise on local labor trends. You’re more than a facilitator, you’re their trusted partner.
Liability: We’ve all read the recent headlines relating to the legal novelty of the intermediary relationship, especially employee misclassification. Pure-play platforms are facing compliance issues and lawsuits. Staffing agencies meanwhile ensure employers and contingent workers are both compliant and protected.
Invest in your assets: Gig-economy platforms are purely transactional. They largely match the worker to the assignment and move on. Staffing agencies, on the other hand, can help with employee retention with the ability to train and upskill workers.
What your on-demand strategy should include
Mobile-first technology: A mobile-first recruiting strategy is key to attracting today’s Gen Whatever workforce (insert X, Y or Z — they are all mobile savvy). Your candidates are searching for jobs on the go. A mobile-friendly website is a prerequisite. Make use of new recruiting applications so your network can follow to see when new jobs are posted, apply and accept right from their phone. Move to the next level with mobile check-in and out of assignments eradicating the need for paper timecards and associated errors.
Transparency: Clear job descriptions are fundamental. Workers need to know exactly what the job entails for ease of acceptance. Ensure the onboarding process is as painless as possible with a map and joining instructions making for a better candidate experience.
Speed: To compete with the on-demand platforms you need an on-demand workforce. Databases matter, but only when leveraged through real-time availability alerts eradicating the need for ring-arounds when a booking comes in. As the saying goes, speed is of the essence.
New metrics: Measure worker engagement and retention, learn who are your top-rated workers. Show your clients how you are helping them achieve better productivity through faster fill rates and less effort on their side throughout the recruitment process. You can even reduce no-shows with preemptive late alerts.
As a staffing firm, this changing landscape presents exciting opportunities and new challenges. Make sure your business has a sustainable competitive advantage by adopting this new business model. You’re in a sweet spot if you can tick the compliance boxes and get your best workers to the right place at the right time with the expediency that the on-line platforms do by embracing technology.
