“We are seeing a convergence of cost reduction initiatives and the need for employers to have more agility, with workers looking for more flexibility. Together, these objectives are driving a shift toward a contingent workforce.”  

Tony Steadman – Americas Total Talent Supply Chain Advisory Leader, EY

The workplace environment is currently undergoing one of its biggest upheavals, where organizations are moving away from 200 year old habits and forming new ones to suit the lifestyle of the modern workforce. Traditional 9 to 5 working hour models are slowly becoming obsolete as technology allows people to perform their roles efficiently and effectively, remotely. 

Employees know they no longer need to be bound to their work desk in order to earn a living. If a company is to survive in this new environment, it should make the necessary adjustments such as introducing a HR Management Platform, to assist with the transition.

What is gig economy?

Gig economy is all about on-demand workforce, such as freelancers and sub-contractors. Investopedia describes it as an economy where ‘…flexible jobs are commonplace and companies tend towards hiring independent contractors and freelancers instead of full-time employees’ and further explains that it “undermines traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career”.

Transformation is in the air and it up to businesses and technology to work together and create flexible ways for workers to perform, catering to new attitudes and expectations regarding work and workplaces.

Adapt or be left behind

According to research within the next decade, 50% or US workers will be freelancers. Working remote or agile is gaining momentum in Sri Lanka as well, as companies realise the benefits of freelance or remote employees towards reducing overhead costs. A HR Management Platform supports this transition towards agile work, allowing for a more content workforce. From a management point of view as well, being able to engage and support freelance expert professionals with ease, boosts productivity and morale and reduces the sometimes unnecessary need to hire someone permanently. 

Changing workforce

The gig economy is here to stay and is visible by its rapid rise in mainstream businesses. Most professionals today, do not like being tied down and appreciate the opportunity to share their expertise with diverse companies and fields. This allows the company to benefit from fresh thoughts and perspectives. It also supports greater productivity as businesses can enjoy the talents and knowhow of multiple experts while in turn flexibility and variety add spice to everyday work life. 

Some employees like to supplement their traditional income with freelance work and having the freedom to do so. The gig economy caters to the needs of today’s workforce trends, and businesses should embrace this change. Put in place HR policies and practices that will encourage freelancers to join so that you can benefit from a higher-skilled workforce, less overhead costs and the ability to meet business demands confidently and effectively as you have the necessary expert resources in place.