Human resource Management and Gig Economy: Potential Future What is Gig Economy?

Figure 1: Some Statistics on Gig Economy (Ben Lutkevich, 2022)

    COVID-19 pandemic has had a significant effect on hiring trends and increased the number of online jobs. As a result, there were many opportunities for freelancers who can do projects with an employer anywhere in the world. With this increasing trend a new term called “gig economy” was introduced. The gig economy refers to the increased interest of organizations to hire independent contractors and short-term workers as well as the growing number of freelancers and workers looking for temporary 'gigs' (Kristine M. Kuhn, 2021).

The two most important factors which contribute to the rise of gig academies are:

1. The workforce has become more mobile.
2. Work is increasingly done remotely via digital platforms.

Gig workers could be anyone from a babysitter to Uber drivers. According to that definition, there are as many as 75 million gig workers in the U.S (Wilkie, 2020).

Advantages of being a gig worker 

1. Flexible working hours - Gig workers can typically schedule their working hours
2. Negotiate better compensation - Greater the skill set and demand for the gig worker's expertise, they can negotiate their package
3. Flexible working environment – Gig workers are not expected to work regularly onsite, commute to the job or deal with office politics.

There are several disadvantages to the gig economy in terms of HRM.

1. Lack of benefits. Gig workers are typically not eligible for health insurance or other benefits they would get working as full-time employees. Companies also are typically not required to pay temporary workers minimum wage or overtime.
2. Work-life management challenges. Gig work can be disruptive if the worker isn't used to making their own schedule. Inexperienced workers can easily take on too many gigs, leading to overwork and burnout.
3. Insecurity and inconsistent income. Having enough work to maintain a stable income is a challenge with gig work.
4. Work culture. Temporary workers who come and go in an organization make it difficult to maintain consistent relationships among workers, employers, and clients on a long-term basis.
5. Career development. When temporary positions are available, employees can find it difficult to establish and develop their careers.

Conclusion

    A robust background screening should be conducted to protect the organization from engaging a gig-economy worker that isn't befitting the organization’s brand. Considering work and working conditions are hugely individualized across digital platform organizations, the implications for HRM along with policy and union responses will vary and will need to be tailored accordingly to facilitate gig workers. Gig workers are like those traditional temporary workers. Their relationship with the company must still be managed by HR. 

References 

1. BEN LUTKEVICH, A. S. G. 2022. Gig economy [Online]. Available: https://whatis.techtarget.com/definition/gig-economy [Accessed 03/25/2022 2022].
   
   
   
2. KRISTINE M. KUHN, J. M., ANNE KEEGAN 2021. Human Resource Management and the Gig Economy: Challenges and Opportunities at the Intersection between Organizational HR Decision-Makers and Digital Labor Platforms. Research in Personnel and Human Resources Management, 39, 1-46.
   
   
   
3. WILKIE, D. 2020. Managing Expectations: How to Balance Gig Workers and Regular Employees [Online]. SHRM Better Workplaces Bettwer World. Available: https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/managing-gig-workers-.aspx [Accessed 3/29/2022 2022].