Employee retention in the Gig Economy

The gig economy has unequivocally become increasingly popular. It is a free market system marked by freelance gigs where workers engage in temporary contracts on a freelance basis. The increased digitization has played a great deal in furthering this gig trend. As a result, the gig economy is estimated to account for the 35% of the present workforce globally, a fact projected to surpass 45% by 2020.

While at it, retaining the workforce in the gig economy is increasingly becoming a challenge. Be that as it may, this article outlines some of the best practices that would ensure retention of the best talents within the gig economy.

Offer Flexibility and Focus on Life/Work Balance

The main attraction that the gig economy has for the workforce is the fact that it offers a flexible balance in terms of work and lifestyle. The skilled and talented workforce such as the website and software developers opt for such gigs as opposed to the traditional roles that characterize most organizations. Besides, it makes perfect sense finance-wise, for the organizations that look up to the services of this workforce as they are often reasonable in their prices, compared to a company or the in-house workforce.

By providing similar flexibility to the workforce, one can significantly increase the chances of talent retention within an organization. There must be a balance between one’s work time and their lifestyle as it forms one of the most critical considerations within the gig economy as it does in the traditional work-settings. It is also important to make remote work something a reality to the employees, where some could carry work home without necessarily making physical appearances in the office.  If the remote option is not practical for your employees, then it would probably be best if the workforce is encouraged to separate their personal life and work life.

Offer Competitive Benefits

The main advantage of having a traditional job market offered on a permanent basis is retirement benefits and allowances. Freelancing, or the gig economy on the other hand, for the flexibility it offers, cannot compare with the match up to the full-time job in terms of job security, stability and the additional benefits that come with the job. Of all these perks, health insurance is probably the most crucial. On the same breath, the employer health insurance is significantly cheaper compared to the individual health insurance and therefore, would serve best if the employers provided better cover in terms of perks and benefits to prevent a switch to the gig economy.

Tailor a productive work environment for the workforce

The gig economy is known for its frequent need to juggle about different roles. This is not true in the traditional setup, as the employees are just but valued members of the organization as opposed to being a means to an end. It is therefore vital for organizations to offer the workforce with new challenges and offerings on a temporary arrangement.

References

Kuhn, K. M. (2016). The rise of the “gig economy” and implications for understanding work and workers. Industrial and Organizational Psychology, 9(1), 157-162.

Ko, J., & Hur, S. (2014). The impacts of employee benefits, procedural justice, and managerial trustworthiness on work attitudes: Integrated understanding based on social exchange theory. Public Administration Review, 74(2), 176-187.

Leighton, P. (2016). Professional self-employment, new power and the sharing economy: Some cautionary tales from Uber. Journal of Management & Organization, 22(6), 859-874.