Mastering the Gig Economy: Effective Strategies for 2024

In 2024, it has become clear that the gig economy is here to stay. This type of work has seen a meteoric rise in recent years, fundamentally transforming how people work, and how businesses operate. Organizations today are putting their efforts towards understanding and leveraging the gig economy to bolster their business. This blog will outline some insights for managing gig workers effectively, helping HR teams and businesses harness their full potential.

The Gig Economy in 2024

Gig work is essentially an entire labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. The current landscape of the gig economy is vibrant and growing, with an increasing number of people opting for gig roles such as freelancers, contractors, and temporary workers.

According to a recent Mastercard report, the gig economy is projected to grow by 17% annually. And by 2024, nearly 50% of the workforce is expected to participate in some form of gig work, as cited on FinanceBuzz. Flexibility and autonomy are main drivers of professionals entering the gig economy, as it gives them the freedom to dictate their own schedules, workload, wages, and geographic locations.

A Range of Benefits for Business

With the right approach, the gig economy can be great for companies looking to fill difficult talent gaps, drive innovation, and accelerate business growth. Below we explore these benefits in more detail:

Flexibility and scalability. Gig workers make it possible for companies to scale their business up or down, based on demand. Finding the right talent for a short-term project is much easier and doesn’t come with a long-term commitment.

Save money. Providing office space, benefits, and paid leave aren’t necessary for freelance workers, which saves companies in overhead costs. The administrative burden associated with things like payroll is reduced when hiring freelancers, as many gig platforms handle that piece for you.

Easy access to specialized skill sets. The gig economy provides access to a global talent pool with diverse expertise, especially with the rise of remote work. Finding and hiring the right experts for niche projects has never been easier.

Innovation and agility. Sometimes an outsider’s perspective can inspire innovation and help companies stay nimble in competitive markets. Embrace a fresh take on your project from someone who has an unbiased opinion—it could be a game changer.

Managing Gig Workers Effectively

All that said, there are unique challenges that come with managing gig workers, especially from the viewpoint of an HR leader. Contract employees can be harder to communicate and collaborate with as they are working remotely or juggling several projects at once. Further, some employers report that freelancers are less likely to adopt the company’s culture and are less invested in the business than a full-time employee.

Here are some strategies for combating these issues and managing gig workers effectively:

Be strategic. Make sure the gig work aligns well with your company’s objectives and be sure to choose projects that match the gig worker’s skills and availability. Plan ahead for upcoming projects by recruiting from gig work platforms, like Upwork, to find top-tier candidates.

Invest in onboarding, offboarding, and reboarding. Make the process of hiring freelancers easier on your team by creating a quick, yet comprehensive onboarding, offboarding, and reboarding program. This will help the contractor assimilate to company culture, the project, and the team they’ll be working with. Further, reboarding makes it simple to re-hire the same freelancer you may need later on.

Make communicating easy. The best way to ensure a successful collaboration is to set up reliable communication channels for consistent interaction with gig workers—whether it’s email, Slack, Teams, etc. make sure it’s a platform that works for everyone. Schedule regular check-ins and updates to keep gig workers informed and engaged.

Monitor progress with regular feedback. Set clear expectations around performance and quality, so that the freelancer is very clear on the goals of the project and their role in its success. It’s also a good idea to conduct weekly check-ins and use tracking tools to monitor progress.

Legal and compliance messiness. Are you up to date on relevant labour laws in your region? Avoid potential disputes and liabilities by ensuring that your company is compliant with those legal standards. Contracts and agreements should be comprehensive, outlining everything from roles and responsibilities to payment terms.

Recognition and connection. A gig worker is different from a full-timer, and therefore will have a different relationship dynamic within the company. However, freelancers must be treated with the same respect and fairness as full-time employees. It’s in everyone’s best interest to connect with the freelancers, recognize their work, and include them in company events and activities.

The gig economy has been a defining feature of the 21st century labour market, and something that today’s employers can absolutely benefit from if leveraged properly. Freelancing will only continue to grow in popularity—does your HR team have a strategic plan in place? At Gameplan HR we know that people and culture are the keys to driving your company’s success. Read here for more tools and tips to successfully embed strategic HR into your organization. 

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