How to manage in a ‘gig economy’

June 6, 2016

HR Assistant, Chelsea Davis, has been looking at a rising trend in recruiting, the ‘gig economy’, and it’s a trend that’s likely to stay.

So what is a gig economy? In basic terms it is an environment in which temporary positions are common and organisations contract with independent workers for short-term engagements.

With an increasing number of workers taking on both short and long freelance work rather than spending all their time working for one company, it is important that companies consider how the concept of a ‘gig economy’ can be integrated into their business. Although this concept is within its early stages, it is forecasted that by 2020 the ‘gig economy’ will be be worth nearly £2 billion in the UK alone.

This new concept can provide benefits for both parties: the company has access to a skilled workforce, without the permanent employee cost, whilst the employee enjoys a greater work life balance with flexibility to deal with personal commitments. The move towards a gig economy may be a great opportunity to add value to an organisation – however there are some points that have to be considered carefully.

Here’s some key considerations when integrating the ‘gig economy’ into your business:

  • Contracts: Contracts need to be assessed to ensure the contract reflects the working arrangements accurately.
  • Holiday entitlements: Workers accrue holiday at a set percentage of hours worked. If these projects are short term the business may not want workers to take holidays within the working period. An alternative is to pay workers in lieu of accrued holiday when the contract terminates. For longer projects a clearly defined holiday request process should be in place.
  • Employee Value Proposition: It is also important to develop a strong employee value proposition that will effectively work across a blend of workers – both permanent and portfolio, as it is important to ensure teams are integrated and the business works efficiently and effectively.
  • Technology: Ensuring that the right technology is in place to automate joining and leaving processes can ensure that they are smooth and easy to manage, and not slow down the company processes.
  • Quality Control: Managing quality control and ensuring that contracts do not simply end up going to the cheapest rather than most reliable and/or best bidder can ensure that the business performs to its highest potential and makes the most out of this increased access to a skilled workforce.

Changing systems and the like is relatively easy, but where people can really add value is in taking their organisations through a transformation – to change everything from culture and leadership to recruitment and marketing.

This is where HR180 can really add value. If you want any help in adapting this new concept to your business please contact HR180 on 0113 287 8150 we will be happy to help!


Leeds based HR180 is a team of superheroes in HR Outsourcing, Projects and Consultancy committed to work in partnership with organisations of all sizes to establish working policies to go above and beyond Employment Law requirements, to protect both employees and employers alike. We love to hear from you, so call us on 0113 287 8150 or hit the Rescue Me button.

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