Being part of the gig economy – meaning working as a freelancer for short-term projects rather than having a permanent salary and role – has traditionally been viewed with trepidation. Freelancing or contract work can be seen as a risky, casual career choice, lacking long-term prospects, financial stability and the safety net of a workplace pension and sick pay. Stories of late payments, working unpredictable hours and little-to-no employment rights have travelled far and wide.
Though challenges remain, the rise of the gig economy has allowed a growing cohort of the global population greater flexibility over their working hours and location; empowered them to make exciting career moves; and helped them to achieve a better work/life balance. So much so, in fact, that in seven years’ time, more than 50% of the US workforce will be part of it. And in the UK, the gig economy is booming too: it’s doubled in size over the past three years to account for more than 4.7m workers.
Gig-economy platforms – like Uber and Deliveroo – tend to dominate the headlines as thriving examples but, in reality, gig-economy workers come in all kinds of forms. Alongside those who moonlight as Uber or Lyft drivers, there are also independent consultants, tradespeople, creatives and technicians. Those working in increasingly digitally-driven sectors, or in roles that require them to be on the move rather than in a fixed location, are more able to make a go of it.
For finance professionals operating on behalf of a company, the rise of the gig economy presents an opportunity to expand the workforce in a cost-efficient way. Employers are capitalising on the advantages of having freelancers and full-time staff working side by side. Rather than investing in hiring a permanent employee – and paying someone a full salary – companies can temporarily scale up the number of people working on a given project as needed and pay for work for a set contract.
What’s more, by harnessing the expertise of a trained professional with a specific skillset, businesses can save time and resources, as there’s no need to train up in-house staff. From an innovation perspective, outsourcing work to gig-economy workers can be a great way of incorporating new ideas and approaches. By seeking brain power and expertise beyond HQ, companies can gain a competitive advantage over those who keep it all in the family.
One challenge with using gig-economy workers can be defining how they fit into a company, and how their treatment differs from permanent employees. Currently, the process of working with freelancers is still being finessed by the majority of companies. It’s a good idea for finance directors to clearly outline what the protocol should be when hiring and paying gig workers – this will only become more pressing as they become an even greater part of businesses’ operations. For example, how will gig workers collect payment, and what can be done to minimise bureaucracy? How can companies benchmark freelancer wages against industry standards, and ensure they’re paying a fair amount? And what’s the best way to handle any expenses gig workers incur while on assignment?
Ultimately, bolting on gig workers to a company team is about adding to its arsenal in an efficient way. For some companies, it may be worth exploring the possibilities of flexspace so that gig workers have access to high-quality temporary offices for the duration of a particular project. This means finance directors can offer up workspace solutions that that can be leased for the length of a project – be it a few weeks or a couple of months. And it can be tailormade to match the length of the gig-worker’s contract, meaning more freedom and lower overheads.
