Talent War In A Gig Economy

 As aforementioned, we are currently in a gig economy where employment are very flexible meaning, you don't need to be tied to your regular 9-5 work schedule. 

Thanks to technology and the internet. 

However, do you know the implications of such on the labour market landscape

What do we have to gain from such discussion

Knowledge is power and information is liberating. 

Firstly, we will need to find answers to some pertinent questions 

1. What is a gig economy?

2. What are the features of a gig economy

3. Who are the participants of a gig economy 

4. What are the peculiar nature of relationships between participants in a gig economy

I believe as we try to answer these questions, we will be stumble upon insights that will help our conversation as we proceed.

A gig economy is not a concept or idea that's new to the industrial environment. It has been in place since the 1920s. It is common among artisans and entertainers. The simplest way to explain a gig economy is a labour market where services are battered on a contractual and task based system.

In modern times, globalisation and digitisation as transformed the gig economy. Now we have ride hailing platforms, delivery apps, holiday rental apps, etc

We also have people who sell their skills for pay on sites like upwork, payoneer, etc

 This brings us to our second question. What are the features of a gig economy. How is it so different from the regular 9-5

Until recently, In a gig economy, the relationship is mostly transactional. You are paid for a specific task and every part of the transaction  ends as soon as the work is completed. There exist no obligation on either party as soon as the work is delivered

The transactional nature of the gig economy makes it a very easy option for employers when they need to supplement their labour supply. It affords them the opportunity to get work done without having to take on additional obligations like pension and other social security compliance.

 Who are the participants of a gig economy 

The participants of a gig economy are independent contractors, employers and sometimes it involves a 3rd party service provider

 Relationships between participants in a gig economy. 

Typically, the Relationship of participants in a gig economy is referred to as a contract for service. This relationship is such that the employer is only contracting you for a particular service and does not have any control over how you do it.

It is different from a regular employment relationship which is referred to as a contract of service

 Prof. Agomo, one of leading labour law experts in Nigeria and one time judge of the NIC explains it in the most profound way. 

Contract of service (regular employment) and Contract for service  ( gig work) can be explained by exploring the difference inherent in either ordering a cab or hiring a chauffeur (driver).

If you order a cab..the cab guy brings his own car and will to a large extent control how he completes the task. However, if you hire a chauffeur, you will provide the car, decide when he resumes, what he wears, etc

This dichotomy will make you appreciate the reason why most individuals are moving into the gig economy...it simply offers more flexibility.

When we talk about talent war, we are talking about the competition between organisations in their attempt to attract and retain key talent (employees/services provider).

It is important to point out that before now, organisations don't put so much thought into how they attract and retain service providers in the gig economy.

They simply just offer them a competitive wage. Most of the reward strategy and employee value proposition was targeted at full time employees (FTE)

 But As organizations grow more complex, they require more agile thinking. As labor markets tighten, they rely more and more on experimental workforce models. As full time employees (FTEs) seek permanent flexibility, organizations face the potential loss of key skills and institutional knowledge.

The Great recession, and more recently, the Great resignation has transformed work arrangements as we know it.

 Between the last 18 months..over 40% FTE employees resigned from their jobs to pursue more flexible opportunities in the gig economy. Organizations are unable to attract individuals into regular 9-5 jobs anymore across Europe and it has become even harder to get service providers from the gig economy 

Companies choose gig workers for reasons of resilience, flexibility and agility. Gig workers enable them to shift their sources of labor and respond to any potential scenario that may disrupt operations or create new opportunities. Now, there are no shortages of channels and platforms for accessing gig workers, however, using these platforms effectively requires integrating gig workers into a company’s overall workforce strategy and culture.

Now organizations are being forced to create value propositions for gig workers  and freelancers.

Today, 25% to 35% of US workers engage in non-standard or gig work on a supplementary or primary basis, according to data compiled by the Aspen Institute. About 1 in 10 workers identify as primarily gig workers, according to the US Bureau of Labor statistics. 

And an astronomical 77% of executives believe freelance and gig workers will substantially replace full-time employees within the next four years, according to Mercer’s Global Talent Trends.

 So, if not now then soon most companies will find themselves competing to attract and retain the best gig workers. How do you create avenues where the best and brightest seek to temporarily perform again and again?

 A transactional mindset may have worked 10 years ago when gig workers were viewed as supplementary to the rest of the workforce, but that approach is no longer viable or desirable. Today, gig workers are a critical source of labor and need to be engaged with the same degree of thought, planning and investment that we bring to engaging employees. Employees might choose organizations for the free food and concierge services, but the gig workers organizations use actively choose will choose them every day. 

How do we ensure we are their first choice when they have opportunities with our competitors?

 How do we build a relationship with them?

These are the questions HR practitioners are asking everywhere 

Some of the suggested solutions and approaches to employ in order to win the talent war in the gig economy are as follows:

1. Create an inclusive employer brand

2. Learning and development

3. Building meaningful and Longterm relationships

 It has becoming increasingly important for employers to create an inclusive brand for their freelancers. You will observe this in the way organizations onboard gig workers and how they give them branded materials, involve them in organization activities and make it so that they are able to feel a strong sense of belonging.

Learning and development has become the go to strategy for most organizations now as it is almost impossible to keep a gig worker by dangling more pay in their faces. Freelancers tends to choose organizations where they get the opportunity to learn new skills and build capacity that helps them as they progress in their career

Building long term relationships with freelancers is not an easy task. However, organizations are employing various strategies to connect with gig workers to ensure they keep on choosing them. Incentives like spousal allowance has become prevalent in the gig economy solely for this purpose

There is a research paper that reports that the gig economy experienced over 70% growth as a result of the pandemic.

A lot of employees who left employment as a result of the pandemic either because of restructuring, furlough, or resignation are not willing to come back to work anymore. The employee value proposition has been greatly impacted with flexibility being on the front burner.

What if employees don't want to lose their job or stay with an organisation due to uncertainties. 

What can be done in such scenario?

Employees can't get guarantees like that. You can't force a willing employee on an unwilling employer. This is even more relevant in the gig economy where employment relationships are not so rigid

 The above notwithstanding..in a gig economy..the contract is usually for a fixed term. So even if the employer terminate your employment before the expiration of the term, you will be paid fully.

 Summary :

🔅A gig economy is transactional and contractual based economy. 

🔅It is being accelerated by the forces of globalisation and digitisation

🔅Work is highly flexible in a gig economy.  Although, workers do not get to enjoy full working rights and benefits. 

🔅The talent war is about attracting, retaining, and motivating talented and high performing workers. 

🔅An agile and flexible working world where FTE seek permanent flexibility has implications for both employers and employees. 

🔅To address the talent war in a gig economy, organisation need to create an inclusive employer brand, priorities learning and development, and build meaningful long term relationship. 

🔅Contract of service deals with regular employment but contract for service deals with gig work.

Criticism:

 This though would work mostly in developed countries however,

Would you rather settle for a gig job, or be 9-5er or entrepreneur owing to the high rate of unemployment in Nigeria? As long as it's sustainable tho Many are on contract but do hope for a permanent job irrespective, your happiness is key.

This originated in developed countries but  penetrating and gaining dominance in Africa and taking a new fashion due to digitization. 

 How do we then incorporate these ones not only into the employer's brand but also into company's vision and goal when entrusted with a weighty task since these ones are not really part of the organization but just benefit some sense of belongingness?!? 

Hence, hire attitude and train skills

Of course, The highest motivation is money and Like you rightly said 

"If it is almost impossible to keep a gig worker by dangling more pay in their faces likewise any form of Incentives is still somewhat conditional and a temporary enjoyment. 

In fact Some with permanent job partook of the great retrenchment due to the impact of economy in comparison to gig Worker. Though Nothing is really guaranteed 

It should be win win and a promising job that we can leverage on to confidently take up "future investment" .