The Rise in Independent Labour
By: Hanif Hemani
Some
experts call it the flex economy, but it is also known as the gig, online, or
on-demand economy, with some even referring to it as the Uberization of work. Whatever
name you prefer, this trend represents a significant shift in the labour market,
as more workers take on contract and freelance work, rather than traditional
employee positions.
Some
of this shift is fueled by the app-based technology that powers companies like
Uber and Airbnb. But even traditional companies are using more contract workers
as they seek to save direct labour costs and focus more on their core
competencies.
What
do today’s workers have to say about it?
A survey conducted by Express Employment Professionals shows the concept is
gaining a lot of interest:
- 40 per cent said they want to be an independent
contractor, but don’t know where to start
- 16 per cent are currently taking steps to become
an independent contractor
- 14 per cent said the independent contractor
lifestyle doesn’t appeal to them
- 13 per cent don’t want to leave the stability of
a full-time job
- 9 per cent are currently working as an
independent contractor
The Implications
for employers
Today’s
businesses can expect that this trend will continue to grow. In fact, a
Deloitte survey found that 42 per cent
of executives expect to increase the use of contingent workers in the next
three to five years.
What
will tomorrow’s businesses look like? Some experts point to tech giant Apple as
a striking example of what is possible. Apple actually employs fewer than 10 of the million-plus
workers who make and sell its products, according to a New York Times article.
However
experts warn that this scale may not be feasible in all industries. In
particular, companies must make sure they can keep contract or freelance workers up
to speed on the compliance and training that are integral for the business.
As
far as age, early reports showed Millennials as most likely to embrace the
contractor work-style, because they value jobs that work around their
lifestyle, rather than vice versa. However, an Inc. article revealed that Baby
Boomers are also cutting the cord from traditional employment. In fact,
research has found that about 18 per cent of gig or on-demand workers are 55 or
older.
A Win-Win Scenario
Contract
workers have been a solid resource for many companies since the 1970s. This
work opportunity also offers the flexibility many of today’s workers require. It
is a winning solution for Millennials who want to spend more time with their
children, for anyone caring for elderly family members or for those enjoying
semi-retirement by working on an as needed basis.
As
the labour market continues to shift in response to this new trend, employers
and employees will need to decide how they’ll respond. For some employers,
moving to a workforce made up of more contract and independent workers will be
the answer. Workers will need to consider all their options, weigh the benefits
of working in the gig-economy against the drawbacks and decide if pursuing
independent work is the answer for their situation.