The gig economy shows no signs of slowing down. Recent research from Intuit shows that gig economy workers currently make up about 34% of the workforce. Many workers enjoy the freedom, variety and financial opportunity that freelance and contract-based work offers them. This is particularly true for workers that are richly talented in skills that are in high demand. As more and more skilled workers choose to perform freelance and contract-based work as opposed to being tied to the constrains and regularity of full-time work, employers are beginning to see how participating in the gig economy works to their advantage. Here are five of the most significant ways the gig economy benefits employers:
1) Saves recruiting and training costs
Many employers need to hire someone that has the skills needed for a certain project, but it doesn’t make sense to pay someone full-time to fulfill a temporary need. Think of the money that goes into the recruiting process and training for full-time employees. By hiring a freelancer, you can cut down on your recruiting costs since you don’t need to evaluate them as a full-time fit. And if you hire a worker from the gig economy, one of the benefits you experience is they already have the skills you need and require less training.
2) Reduces the time and work involved in hiring
Workers in the gig economy usually come from smaller talent pools since their skills are more specialized. This means less resumes to sort through and less interviews to hold. Gig economy workers aren’t being hired for full-time roles and often work remotely. So, one of the benefits for employers is not having to worry about factors such as whether the employee is a cultural fit, or making sure there is an appropriate workspace available for them.
3) Cuts costs of having a full-time employee
To attract quality talent full-time, you will most likely need to offer top-notch benefits like health insurance, retirement packages, paid time off, stock options, etc. You will also be responsible for paying more taxes and worker’s compensation costs. The gig economy benefits employers by removing most of these costs.
If your company has certain times of year that are busier than others, or if your business isn’t always conducted on a regular 9 to 5 schedule, the flexibility of gig economy workers comes in handy. One of the biggest ways the gig economy benefits employers is that many of these contract-based workers keep irregular hours. They also tend to be mobile-savvy. So, if you are up against a deadline and it’s 11 pm on a Friday night, there’s a good chance you can get an e-mail response from a freelancer in the gig economy.
5) Potential Full-Time Hires and Networking
To be able to make your own schedule and work for yourself as a contractor, you must have confidence that you will be able to sell your talents to many companies. So, it goes without saying most successful gig economy workers are very talented. By hiring a freelancer in the gig economy, you will get a preview at their working style, and possibly be able to hire them full-time in the future. Since much of the best talent out there isn’t sending in applications to your company, this could be an easier and effective way to find quality full-time talent. Also, if your company works with gig economy workers on a regular basis, you never know who they have in their professional networks that could benefit your company even further.
To avoid having an important project being ruined, employers should make sure that they carefully screen freelancers in the gig economy. And while the gig economy may not be the answer in every situation, it certainly seems to be something that benefits most companies in some way.
Check out our article Tips for Hiring Freelancers in the Gig Economy
Author: Jessica Cody
Jessica Cody, a native of Fairfield County, Connecticut, has a background in online marketing and public relations. Currently, she works at VHMNetwork LLC in the role of Marketing Analyst. She is a graduate of the University of Connecticut, where she studied Journalism and Political Science. She is also an avid runner with a passion for the outdoors.