A gig economy is one where permanent jobs are absent and short term engagement with independent contractors is common. A recent study in the USA predicted that by 2020 more than two-fifth of the American workers will be independent workers. Already America leads the freelancers club with 25% of the population engaged in freelancing. There will a decoupling of job and location and more and more people will work from home. This is beneficial for the working people who get a range of offers and have free time for themselves. The employers will have a bigger pool to select from and it is advantageous for them.
HR functions will change with Gig economy
The degree in Bachelor of human resource management will have to add some more realistic pieces of training with the advent of the Gig economy. The HR functions will not be normal, as the people working independently will not be under direct control. The competition for hiring the right talent will become tougher with the professionals choosing where they want to work. In fact, they might be working parallel with competitors which are an HR’s nightmare. New contracts will have to be drawn to maintain the privacy of contracts as the traditional ones will not work. The companies will have to change their mindset once and for all.
The secret is people management
The secret to success in the Gig economy will be people management. Every employer will have to be creative and adopt new tools for managing the freelance work force. Creative offers will become essential for attracting talented workers. A freelancer management system software will become essential in this economy. Sharing real information about the job and the way of working will become essential for the success of enterprises. Data intelligence will be the key to hiring the right person, and this is a major change in the traditional HR system. The HR department will become a part of the organisation and more people will be involved.