Gig Economy and It's impact to HRM

The “gig economy” has firmly entered employment vocabulary, becoming a catch-all term for anything from Uber taxi drivers to freelance professionals. But what does this hyper-flexible way of working mean for HR?

What is the Gig Economy?

For some, it simply refers to the ever-growing number of people who use one of the (still relatively) new talent platforms or online service brokering like Uber, Airbnb, Upwork, TaskRabbit.
For others, it includes these people, but also anyone who works in a contingent, temporary, diversified or freelance capacity. In other words, anyone who isn’t a full-time or part-time employee.
(Revelian.com)

How big is it?

The lack of clarity about what it actually comprises leads, not surprisingly, to ambiguity about how big it actually is – that is, what percentage of the workforce it involves.
If we start at the smaller end of the scale – people earning income via online platforms, then it’s certainly increasing at a rapid rate.
This recent study from JPMorgan Chase Institute found that 1% of all US workers are involved in one or more of these online platforms, which equates to the number of people working in the US public school system.
A late 2015 Time study that include all kinds of contingent workers, rather than just platform workers, have claimed that 44% of all US workers are involved in non-traditional employment

In Australia, Jim Minifie of the Gratton Institute found that “Platforms such as Airtasker and Expert360 had not changed the shape of the labour market, with independent contractors steady at about 9 per cent of the workforce for the past 15 years and workers using digital peer-to-peer platforms numbering only about 80,000 in a labour force of 11 million.”


When you take the gig economy at face-value, it seems to be one of the most desirable forms of employment, with employees seemingly gaining freedom to work the hours they wish, often in a quirky office, and for an innovative, forward-thinking company. (Griffiths , 2017)

In a Nutshell
On one level, the rising shared economy simply means more options and a broader horizon for employees. Increasingly, the market supports freelance and contract employees who join the on-demand market by choice rather than in response to crisis or the loss of a traditional job. Gone are the days when "self-employed" was a thinly veiled term for unemployment. Increasingly, freelance work and self-employment are associated with greater freedom, flexibility, options, new possibilities, and a safety cushion.

Benefits : 

• Flexibility

For employees, flexibility is one of the biggest draws of on-demand work. The availability and prevalence of freelance opportunities at the tips of employees' fingers reveals options in flexibility that a few years ago were minimal in middle America. It's now possible to work from home while supporting younger children, pursue a passion project part time while bringing in enough cash to pay the bills, and take as much time off to travel as a given situation allows.

• Options

With low barriers to entry and endless opportunities for freelance employment (and more popping up daily) literally at their fingertips, employees' biggest hurdles to joining the on-demand workforce is often determining which freelance employment opportunities are the best fit for their lifestyle, skillset, and time.

• Safety Cushions

Gone are the days of a mad scramble to find a job-any job-if traditional employment falls through. Now employees have higher quality, varied options for stop-gap employment (that may well turn into a long-term situation by choice for many). Rising options for on-demand, gig-style employment can take some of the stress out of job searching, by giving employees a sustainable cushion of income and allowing them to take their time finding the best fit for new employment.

Risks and Challenges

• Inconsistent Income

The benefit of on-demand platforms that support low barriers to entry comes with an inherent drawback for employees: low barriers to exit. Any given source of contract work can dry up quickly, in some cases because of negative reviews of a freelancer's performance (especially reviews that are publically available, in apps like Uber and Airbnb), and most sources of freelance work depend on the sometimes arbitrary satisfaction of a client.

• New Costs

Contractors may find that costs like health insurance and other work-related expenses have a significant impact on their net take-home pay

• Fewer Protections

Contract work typically means that most of the safeguards available to W-2 employees are absent in the on-demand dynamic. Severance pay, disability leave, PTO, sick days, and workers comp are just a few of the protections and benefits afforded to full- and part-time employees but not contractors. It's also far easier for employers to terminate a relationship with a freelancer as opposed to a full- or part-time employee.


References: 

Revelian.com, 2017 , Grasping Smoke: Defining the Gig Economy and its HR Implications ,http://www.revelian.com/blog/grasping-smoke-defining-the-gig-economy-and-its-hr-implications/, Accessed 08.10 am, 2018.07.05

TSheets.com, 2017 ,What Is The Gig Economy-And How Does It Impact Employees? https://www.tsheets.com/resources/gig-economy-employees , Accessed on 08.50 am, 2018.07.05


Griffiths C, 2017, Do HR and the Gig Economy Have a Future? , http://www.onrec.com/news/news-archive/do-hr-and-the-gig-economy-have-a-future, Accessed on 9.10 a.m. 2018.07.05

Everett C. , 2016, Do HR and the Gig Economy Have a Future ,https://www.personneltoday.com/hr/gig-economy-what-it-means-for-hr/, Accessed on 09.40 a.m, 2018.07.05

Contemporary Issues to Global HRM | Recruiting and Retaining Top Talent

In a stabilized economy underpinned by steady job growth, jobseekers have far more employment opportunities than just a few years ago. That’s why attracting and retaining top talent goes well beyond pay and benefits. (Tyson, 2017)

While technology may allow us to scale businesses exponentially (once we have identified the appropriate formula), hiring the right talent is still the most fundamental aspect of building a thriving business. The HR function of being a startup founder is perhaps the role we are least equipped to play. But it is, in my opinion, the most important.

 (Fouladger-Mercer, 2013)

Employees are more apt to evaluate a potential employer with the same intense scrutiny as the company doing the hiring. After they come aboard, the best employees are engaged, productive and go above and beyond in their typical job to grow a business or develop innovative solutions. The business benefit of these highly motivated employees is clear—they can increase customer ratings by 10% and profits by 21%. But recruiting and retaining top talent is getting more difficult with the unemployment rate at a low 4.3%. A competitive salary is, of course, a big driver in recruiting top talent and getting them in the door, but a much more complex mix of factors keep employees at a company for the long haul. These factors are a variety of tangible and intangible events and activities measured not just by dollars, but also happiness, flexibility, education and development opportunities, and employee recognition.

According to Rob Tyson, Director of Talent Acquisition, Corporate Synergies ,Here are 7 benefits and activities that aid recruitment and retention of star employees:

1. Onboarding and training: First impressions matter. This goes for not only the interview process, but an employee’s first few days on the job. A comprehensive onboarding program includes information on company policies, background of the company, pay and benefits, but also training about the industry and the actual work employees will be doing. 
2. Culture and work-life balance: Focusing on company culture and making work-life balance a priority drive employee engagement and retention. Building a positive culture around openness where we are amenable to new ideas and try to learn from each other can drive good conversation and help to move an organization forward. Similarly, ensuring that employees have a good work-life balance also helps to keep everyone happy
3. Employee recognition programs: Recognizing employees when they go above and beyond is essential, and employees agree; 74% say that employee recognition is important to keeping them happy.
4. Events: Events are another way for employees to bond outside of their normal work environment.
5. Worksite health & wellness: Wellness programs are an important way to keep healthcare costs down. They’re also a way to show employees you care about their wellbeing. Health & wellness programs promote getting healthy and foster camaraderie, and mounting research shows that these benefits are expected by employees.
6. Employee engagement survey: You’ll never know how employees feel if you don’t ask them, which is why engagement surveys are so important. 
7. Mentoring: Nearly 90% of millennial say that job growth potential is important to them.

References :

Tyson R, 2017, Retaining top Talent. https://www.corpsyn.com/docs/pdf/articles/retaining-top-talent.pdf, Accessed 12.00p.m , 2018.07.05


Fouldager-Mrecer S, 2013 , 5 Tips for hiring and retaining top talent, https://www.forbes.com/sites/theyec/2013/03/22/5-tips-for-hiring-and-retaining-top-talent/#503599a85952 , Accessed 12.15 pm, 2018.07.05

Deutsch B, 2012, Can you prevent your best employees from leaving?,  http://www.impacthiringsolutions.com/blog/category/hiring-and-retention-trends/ , Accessed on 12.20 p.m , 2018.07.05.

Contemporary Issues in HRM | Occupational Stress.

What is work-related stress?
Work-related stress is the response people may have when presented with work demands and pressures that are not matched to their knowledge and abilities and which challenge their ability to cope.
Stress occurs in a wide range of work circumstances but is often made worse when employees feel they have little support from supervisors and colleagues, as well as little control over work processes.
There is often confusion between pressure or challenge and stress and sometimes it is used to excuse bad management practice.   (WHO, 2007)

Pressure at the workplace is unavoidable due to the demands of the contemporary work environment. Pressure perceived as acceptable by an individual, may even keep workers alert, motivated, able to work and learn, depending on the available resources and personal characteristics. However, when that pressure becomes excessive or otherwise unmanageable it leads to stress. Stress can damage an employees' health and the business performance.

Work-related stress can be caused by poor work organisation (the way we design jobs and work systems, and the way we manage them), by poor work design (for example, lack of control over work processes), poor management, unsatisfactory working conditions, and lack of support from colleagues and supervisors.

Research findings show that the most stressful type of work is that which values excessive demands and pressures that are not matched to workers’ knowledge and abilities, where there is little opportunity to exercise any choice or control, and where there is little support from others.

Employees are less likely to experience work-related stress when - demands and pressures of work are matched to their knowledge and abilities - control can be exercised over their work and the way they do it - support is received from supervisors and colleagues - participation in decisions that concern their jobs is provided.



Recognition and respect at work: a fundamental human need

Being respected and appreciated by significant others is one of the most fundamental human needs. Consequently, people go to great pain to gain acceptance and approval. Recent research in the domain of occupational health psychology shows that many stressful experiences are linked to being offended – for instance, by being offended or ridiculed, by social exclusion, by social conflict, by illegitimate tasks. Such experiences of being treated in an unfair manner constitute an “Offence to Self”, and this may have quite far reaching consequences in terms of health and well-being. Conversely, being appreciated is one of the most important factors that increases motivation and satisfaction as well as health and well-being. The presentation below covers examples from recent research and draws conclusions concerning the many ways in which appreciation and respect (or lack thereof) can be communicated and how this knowledge can be useful for prevention in the field of health and well-being.



References : 

WHO, 2017  , Stress at the workplace, http://www.who.int/occupational_health/topics/stressatwp/en/\ , Accessed at 10.50 p.m , 04.07.2018.

Stavroula L, Griffths A, Cox T, 2004, Work Organization and Stress , World Health Ogragization, France.

THE HR Role of CSR

The expectation for organisations to demonstrate their corporate responsibility has never been greater. The spotlights on climate change, our use of natural resources, employee well-being, value chains and the global economic crisis have all led to increased pressure to manage the impacts of business activity on all stakeholders and contribute to sustainable industries. (CIPD, 2013)


When companies are global, an important challenge in garnering success is to respect other cultures and workforce environments and start forming a global profile or social consciousness. Recognize these differences with a sound Corporate Social Responsibility (CSR) plan that can simultaneously increase shareholder value, boost employee engagement and increase employer brand recognition. 

expansion comes a responsibility.

When companies are global, an important challenge in garnering success is to respect other cultures and workforce environments and start forming a global profile or social consciousness. Recognize these differences with a sound Corporate Social Responsibility (CSR) plan that can simultaneously increase shareholder value, boost employee engagement and increase employer brand recognition.
Human Resource Departments play a critical role in ensuring that the company adopts Corporate Social Responsibility programs. Furthermore, HR can manage the CSR plan implementation and monitor its adoption proactively, while documenting(and celebrating) its success throughout the company.


Human Resources technology can help with a Corporate Social Responsibility program, including reducing the company's carbon footprint to benefit the planet. Start with these areas:
• Implement and encourage green practices.
• Foster a culture of social responsibility.
• Celebrate successes.
• Share and communicate the value of corporate social responsibility to employees and the community.


Implement and Encourage Green Practices for Corporate Social Responsibility

Implement green practices to assist in environmental waste reduction, while promoting and encouraging stewardship growth, better corporate ethics and long-lasting practices that promote both personal and corporate accountability.

The value inherent in embracing green aspects of corporate responsibility is clearly understood, given the direct impact that rising energy and utility costs have on employees' pocketbooks. Conservation has become an accepted means of making our planet healthier.

Reducing each employee's carbon footprint is a great way of getting energy conservation and recycling waste initiatives off the ground. Here are suggestions to start:

• Recycle paper, cans, and bottles in the office; recognize departmental efforts.
• Collect food, and especially donations, for victims of floods, hurricanes and other natural disasters around the globe.
• Encourage reduced energy consumption; subsidize transit passes, make it easy for employees to carpool, encourage staggered staffing to allow after rush hour transit.
• Permit telecommuting and allow employees working remotely to the degree possible.
• Encourage shutting off lights, computers and printers after work hours and on weekends for further energy reductions.
• Work with IT to switch to laptops over desktop computers. (Laptops consume up to 90% less power.)
• Increase the use of teleconferencing, rather than on-site meetings and trips.
• Promote brown-bagging in the office to help employees reduce fat and calories to live healthier lives and reduce packaging waste, too.

References 

CIPD, 2013 The Role of HR in CSR,https://www.cipd.co.uk/Images/the-role-of-hr-in-corporate-responsibility_2013-sop_tcm18-9315.pdf Accessed time 10.45 pm , 4.07.2018.

Strandberg C, 2009, Role of Human Resource Management in CSR, https://corostrandberg.com/wp-content/uploads/2009/12/csr-hr-management.pdf, Accessed time. 10.00 pm, 04.07.2018.