Businessman assembling jigsaw puzzle human team employee

Recovery Playbook

your talent challenges have changed

2020 has forced every business to rethink Talent. Talencity’s Talent Recovery Playbook is a resource guide to you in pivoting, shifting or re-inventing your talent strategy.

Each week for 12-weeks, a new resource will be launched.

Gig Economics

Gig Workers give you access to Talent you typically have not needed in the past.

The Gig Economy has been steadily growing globally and in Canada, and post pandemic, you can be sure that its growth will only accelerate. A study by Statistics Canada1 showed the share of gig workers has risen from 5.5% in 2005 to 8.2% in 2016.

A “Gig” includes any informal work ranging from artists selling their work, to Uber drivers, to Professional Engineers or Subject Matter Experts on contract required due to a project or short-term need. A Gig Economy is a labour market characterized by the prevalence of temporary and contract jobs where freelance, or contingent workers provide on-demand services.

Many organizations are going through major strategic realignment and are uncertain of the short to medium term outlook. As a result, additional resources or unique, yet temporary skill sets are required. Tapping into the gig economy might help you bridge this gap in both resources and skill sets. As we recover from the pandemic, consider augmenting your teams with gig workers, with skills that range from blue-collar to professionals.

Gig Workers in the Canadian Economy 2005 vs 2016 1

2005 – 5.5%
2016 – 8.2%

Do Gig workers cost more?

Many businesses feel that the start-up costs, such as recruitment and training, for gig workers seem prohibitive. However, the benefits of other savings such as benefits and payroll while maintaining headcount, could outweigh the monetary costs. Aside from the accounting benefits, consider other values such as knowledge transfer, shorter onboarding time.

We are in an environment where change is constant. The unique skillset and subject matter expertise can ease the strain on your team, especially in a crunch.

Margaret Rouse at summarized this best: “….employers can select the best individuals for specific projects from a larger pool than what’s available in any given area”.2

How to determine if Gig Assignments are suitable for your Organization?

Here are some of the more common reasons that our clients tell us, when they need a temporary or contract worker

  • Uncertain outlook of business and economy
  • Skills gaps which could be short term
  • Cyclical business
  • Sudden increase in business or projects
  • Headcount freezes

Like it or not, the Gig economy will continue its growth and thrive after the pandemic. Work with your talent advisors to ensure that you are on top of this wave, to ensure you attract the best talent to address your company’s requirements

of Gig Workers

When making your decision as to whether to retain gig workers, take into consideration these benefits they can bring to your organization:

  • Ability to hire experts for services needed for short term basis.

  • Agility to scale quickly.

  • Take on projects which are highly time sensitive.

  • Knowledge transfer – expecially with emerging technology and specialized skills.

  • Try then buy – ensuring fit of employee and/or long term needs.

  • Lower commercial space costs.

  • Attract diverse talent of various backgrounds and demographics.

  • Highly motivated taskforce – 60% of gig workers indicate they do gig work for the opportunity not for necessity3.

Pitfalls of Gig Workers

While there are many great benefits to tap into the gig economy, do watch out for:

  • More difficulty in validating their skill-sets

  • Gig workers might not align to company’s culture affecting your existing team’s morale and engagement.

  • Recruiting executive leadership is more challenging with shrinking talent pool due to gig economy.

  • Potential compliance issues and lack of gig worker friendly policies.

  • Alignment of roles and performance management can be more difficult with gig worker.

  • You need proper processes and tools to manage freelancers/contractors

  • Co-employment risks need to be considered, a gig worker is not an employee

With over 75 years' of combined industry experience, the partners at Talencity have summarized the main reasons why our clients typically look to us for Gig workers:

  • uncertainty – level of business, economy;
  • skills gaps – short or long term;
  • cyclical business; and
  • sudden increase in business or projects