Running head: EVOLVING ROLE OF HR IN THE GIG ECONOMY
The Gig Economy
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EVOLVING ROLE OF HR IN THE GIG ECONOMY
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The Evolving Role of HR in the Gig Economy
The gig economy has experienced an unprecedented level of growth in the recent past. It
finds strategies and tools to unite talent across diverse roles within an organization hence the
need to optimize human resource structure and planning. This situation is created by the
transformative nature of the gig economy.
The Human Cloud Platform
The gig economy refers to talent acquired for a periodic timeframe without the
involvement of a permanent contract. For instance, if one is employed for three months to
perform a particular role, that is an element of the gig economy. In regards to the human cloud
platform, the gig economy is operated via software systems. Currently, employers are
envisioning the human cloud system as an ideal way of getting jobs done. In this case, these jobs
are divided across different employees around the world via a virtual cloud or software system.
The essence of employees working online rather than around the same physical space has
a myriad of challenges. For instance, there is need to authenticate different strategies towards
talent acquisition and career development in the gig economy compared to official mainstream
jobs. This change is attributable to the shift in leadership culture spanning control, command,
and mentoring, and collaboration within the gig economy ("Shifting towards the gig economy:
How will this impact HR departments?," 2018).
EVOLVING ROLE OF HR IN THE GIG ECONOMY
Image 1: Examples of Gig Economy (Phillips, 2019)
For example, the key focus on the gig economy is attributable to performance culture
based on personal responsibility over work volumes, time frames, and deadlines compared to
mainstream jobs where work volume is controlled by the supervisor. There is a lack of formal
milestones and appraisals in the gig economy unlike the situation within formal employment,
characterized by performance-management strategies.
Talent Management across Multiple Locations
The key challenges linked to the gig economy include; the issue of managing a pool of
talent across diverse locations, the adoption of contractual terms and conditions within the gig
economy ("Shifting towards the gig economy: How will this impact HR departments?," 2018).
The gig economy takes a predominantly informal approach and hence the issue of contracting is
unique from formal jobs. It is imperative that the human resource department finds an ideal way
to format and align contracts within the gig economy in such a way that they address all its
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pertinent elements. The HR should also align the organization as the best employer for contract
workers when operating within the gig economy due to the heightened levels of competition
within this new industry.
To elevate an organization operating within a gig economy, it is vital to automate the
firm’s onboarding process and lower the burden on HR. Further, it is also imperative that the
firm seeks ideal ways to manage quality control and opt for the highest-quality of talent instead
of the cheapest. The gig economy supports the formal employment economy offering advantages
to flexible businesses. For instance, in construction, a six months project awarded to a contractor
is an element of a gig economy. The gig economy is keen on high-skill levels but the employees
shift from organization to organization upon the completion of tasks. It is therefore, important
that the key elements of the human resource are adjusted to fit the needs of the gig economy.
These shifts include transformations to accommodate new ways of working.
Recruitment in the Gig Economy
Attraction and retention of strong talent should be of high priority within the context of
HR professionals in gig economy. Hence, firms that adopt these changes are bound to be the
most desirable employers within the gig economy as freelancers are more attuned to firms that
recognize their role as gig workers.
The gig economy requires a faster recruiting process that most mainstream organizations.
This is because the gig economy is fast and hence there lack time to do a 6-month employee
recruitment because people come and go. Therefore, selection and onboarding should be done
within a couple of weeks or days whenever possible. Another key consideration that necessitates
fast recruitment within the gig economy is that organizations are always competing for top talent
and hence to acquire it, an organization has to be prompt and fast or somebody else will tap it.
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Changes in Training and Development
Training, development and performance management should also shift. The fact that they
operate on an annual timeframe within mainstream markets needs to change to adapt to the gig
economy. Since employee acquisition occurs within a shorter timeframe, and are also offered
short-term opportunities, annual timeframes for training and development among other aspects of
performance management hence also need to shift from an annual basis to a short-term
projection.
This change should focus on outcome-oriented objectives linked to specific deliverables
to promote an iterative interaction between managers and the gig employee. For instance,
employee retention within the gig economy is unique and should hence be dynamic since tenures
are short-term. An employment contract should attract employees and entice them to work within
the organization via the creation of an ambassador culture, such that gig workers are motivated to
work in it (Phillips, 2019). even when the gig employees are not actively engaged with an
organization, they should be ambassadors to the brand.
The gig economy is also actively immersed in social media and technology such that
when gig employees are ambassadors for the firm, they are at all times actively aimed at
improving the firm’s reputation such that when the organization attains success it becomes what
most people are likely to join or seek employment.
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References
Phillips, P.(2019).Forbes. https://www.forbes.com/sites/forbeshumanresourcescouncil/2019/10/1
6/the-evolving-role-of-hr-in-a-gig-economy/?sh=605ea9b661a3
Shifting towards the gig economy: How will this impact HR departments? (2018). Salesforce
EMEA Blog. https://www.salesforce.com/eu/blog/2020/07/gig-economy-hrdepartments.html