New technologies have changed the way in which companies work. According to certain estimations, collaboration is a reality that employment shall follow as a path in a near future. A report developed by EY called ‘Contingent Workforce Study‘ points out that, even though “full-time contracts has always been the most used form of employment”, the  gig economy becoming more and more important in the “fourth industrial revolution”.

One out of two companies surveyed by EY has increased its number of freelancers or giggers during the past five years. In the short term, it does not seem that the trend will fall as, in the next five years, 40% of companies expect to hire more freelancers, and one out of four estimates that 30% of its payroll shall be giggers by then.

According to 55% of the survey respondents one of the main reasons for the gig economy boom is cost control. As regards freelancers, the advantages that come from working as such are linked to more flexibility (80%), work control (49%) and the possibility of remote work (33%). However, according to 20% of the survey respondents claim that for them, becoming giggers is also conditioned by the lack of permanent employment.

They also believe that they are treated in a poorer manner than permanent workers (58%). They are also concerned about not having paid vacations, as well as about social security, healthcare (63%), and pensions (20%).

Considering these negative aspects, only in the United States, around 31 million workers are expected to be freelancers by 2020.

EY states that “once companies set their strategic intention and understand what makes giggers work like that, they will have to implement a six steps action plan:

• The pursuit for a proper management formula for this group of workers that complements the formula applied on traditional workers.
• The adaptation of new commitment model.
• The improvement of corporate government structures.
• The redefinition of value proposals that companies provide for inner and outer talent.
• Setting and considering risk management frameworks
• And launching compliance processes to support business goals and workers who shall work on achieving such goals.

“This demands leaving behind the traditional employer model and for companies to completely change their approach to work and to different kinds of workers”.

Finally, given the automation context and other aspects of the Fourth Industrial Revolution, the report states that it is important to “understand how business are balancing new opportunities to maximize their efficiency, performance and profitability, with social obligations towards workers, regardless whether they are fulltime workers or giggers, and complying with the requisites of a global and dynamic regulatory framework”.

Source: Talent Street by Equipos y Talentos