What is Gig economy?
Gig economy is a phrase that has been alien to the UK until recently. Our American cousins have sent this over to us leaving many of us confused to its interpretation.
Essentially since the recession, the UK has been leaning towards a more flexible workforce model. That is, moving away from the full time permanent staffing approach, instead preferring to utilise temporary, zero hours and self employed workforce.
Initially in some HR models, this was met with resistance. However, we are now beginning to understand that that the “Gig Economy” works for the organisation. The Gig workforce ensures that the labour force can be flexed up when the demands are high but easily reduced again when the clients' needs diminish. Thus avoiding the need to stretch existing staff to exhaustion. Also avoiding certain worker rights and associated costs, or hiring, only to make redundancies later on.
Flexible staffing models is key
There are of course things to be wary of. For instance, as in the case of Uber which we have reported on previously. Uber's self employed workers were found to be employees. Also in the case of Sports Direct where there has been much press surrounding their zero hours staff. Added to which claims that they have been mistreated.
However, in the main ensuring that your static workforce is complimented with the ultimate in flexible staffing models is key for ensuring success. Especially in the modern, competitive arena. The heart of getting the best out of your flexible workforce is to understand the legal restrictions and risks. Thus ultimately ensuring a clear set of terms and conditions are professionally drafted accordingly.
We can help your business explore the best way to utilise the new and rising Gig Economy, call us to discuss. If you require more information regarding HR Outsourcing please contact us.
