The gig economy and how it redefines the talent map

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The independent worker, or freelancer, is already a reality in many professions and sectors such as consulting or media - a trend that is gaining more and more followers in the business world due to its potential to mitigate the shortage of talent that Spain is experiencing. However, there are also many challenges to face. The possibility that a single professional can offer their knowledge, experience and training to solve the challenges of various companies can cause problems related to loyalty and professional secrecy, or a threat to the professional stability and labor rights of these employees.

Korn Ferry has surveyed about 500 human resources professionals globally to know their hiring intentions. As the study reveals, the professional profiles that make up the so-called "gig economy", characterized by its transience and by a continuously increasing type of contingency employment in the United States, are beginning to be the most demanded by companies.

In fact, more than half of the human resources professionals (60%) admit that they are hiring more "gig" employees than three years ago, while 42% of managers say that the trend will continue to grow in the future. This category includes both freelancers and temporary collaborators, who are positioning themselves as a priority workforce within organizations, due to the ease of their management compared to that of the company's permanent staff. , and the cost savings that this implies, according to sources of the consultancy.

The freelance, star talent

For companies, some of the advantages of this new economy and that also explain the great demand that there is of this type of professionals, lies in the flexibility that implies having a collaborator that could be dispensed with, without any type of penalty for the organization compared to a lay-off of an employee, for objective reasons such as a decrease in sales or workload. In this way, companies can have productive human capital, which they can also remunerate directly for their work, without assuming the costs derived from Social Security or extra payments, for example.

This formula of work by projects allows its professionals to enjoy greater flexibility and freedom to get involved in the challenges that interest them most. However, this type of employees tend to receive a lower salary than salaried employees and are more vulnerable to changes in the economy in general, or to the evolution of the company that contracts them in particular.

At a time when companies do not find profiles to successfully deal with digital transformation, having independent professionals who contribute this value to the organization without having to re-adapt the job is highly profitable. In this sense, the confidence of employers in their workforce is key. Something that confirms Korn Ferry's report; 67% of Human Resources professionals say they have full confidence in the performance of these employees, even though many of them do their work remotely.

Specifically, two thirds of respondents say they are integrating these professionals into the culture of the workplace and almost 60% think that this type of workers have a positive impact on it. For this reason experts conclude that the key to remain competitive lies in maintaining a balance between permanent work forces and a team of stable collaborators hired in a timely manner, to form a mixed group that, with their work and cooperation, allows the company to face the various obstacles that may arise.

Currently, startups and P2P platforms such as Uber and TaskRabbit are already promoting this work model, based on the concepts of labor flexibility and freedom of work, that is, to be able to decide in what way, when and where to work, as well as in the projects that the professional is involved. That is the theory and the ideal scenario for many professionals regarding freelance work. However, the legal conditions - very linked to their benefits and rights - for these workers are far from being what, a priori, promises this modality, especially in some countries like Spain.

The myths of the Gig Economy

The Boston Consulting Group publishes a report that questions the generalized perception that there is of the Gig Economy and of the new modalities of work. The study has been carried out through surveys of more than 11,000 workers in eleven different countries, and determines, for example, that the professionals who use the Gig Economy platforms are in turn beneficiaries and victims of the disruption.

This poor perception is often linked to low wages and precarious working conditions, despite the fact that "the number of workers who lost their jobs as freelancers was equal to the number of workers who recovered jobs under the same conditions," they say from the consultancy. The employees of the Gig Economy come from a wide range of industries and sectors, such as Information Technology - including the media and telecommunications - finance and insurance.

Likewise, another of the myths associated with this new economy is that workers by projects are "a scarce source of talent and corporate experience". A statement that the report not only denies but also warns: "The use of new freelance will allow companies to adapt to the disruption of corporate environments."

This is also supported by data from another Boston Consulting Group survey of more than 6,500 executives, where 40% of them state that they expect that, over the next five years, collaborators for projects will grow more than salaried professionals. In this regard, corporations must develop the support systems and the correct capabilities to ensure that these professionals are encouraged to develop. A trend that could also benefit other professionals, who can reduce their workload and, therefore, focus on more strategic tasks within the organization.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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