The gig economy is one of the fastest-growing models of the workforce. Due to the pandemic, many organizations were forced to implement a digital strategy to stay afloat. The gig economy offers many benefits not typically found in a traditional 9-5 job, such as flexibility over one's workday hours, freedom from office politics, and removal of the necessary commute to and from the office. The popularity of entrepreneurial work is estimated to grow by 60% within the next 6 years as more individuals look to work as independent contractors by 2027.
As contract work continues to rise in popularity, it’s important that your organization takes advantage of the gig economy, the rise of technology, and remote work as they all have many benefits to offer organizations. However, despite the many benefits offered by the gig economy, there are potential dangers that could be damaging to any organization. Partnering with a trusted company like Certn who offers affordable background checks to organizations, regardless of the size, can help your company stay safe from potential liabilities while still benefiting from the gig economy.
In this blog post, we will discuss why you should take advantage of the growing trend of the gig economy while mitigating the potential risk of liabilities to your organization.
The pool of talent is top-tier
As Canada continues to recover from the COVID-19 pandemic, a significant number of Canadians are looking for work. Although it's been more than a year since the pandemic shook the world, people continue to be affected by its long-term impact as 212,800 jobs were lost in January 2021 in Canada alone. Now is the time when organizations are actively seeking qualified candidates and have the ability to reach top-tier candidates.
Organizations can now access top-tier candidates in numerous industries that were affected by the COVID-19 pandemic such as:
- Public Sector
Certn’s Chief Revenue Officer, Rory Capern, states, “As firms recognize the appeal of a flexible work-life balance for employees and acknowledge that they are no longer competing in a local pool for talent, they are also facing a unique opportunity to not only recover post-COVID but expand beyond previous benchmarks”.
Utilizing Certn’s background screening solutions means organizations can quickly hire top talent. With Certn, organizations can have peace of mind knowing that their business is protected and that no matter the size of the task at hand, it can be completed with ease from anywhere in the world.
It is cheaper to hire freelance than a full-time employee
The gig economy means you can outsource to independent professionals for specific jobs on a per-project basis. One of the main advantages is that you are not responsible for the freelancer's income in the same way you would be with an employee. You don't have to worry about medical benefits, retirement plans, severance, or other benefits associated with employees, resulting in potential savings of 20-30% annually. This can be a great way to save money while allowing you to take advantage of qualified professionals.
With the shift to more project-based work, freelancers are enjoying the freedom that comes with not working a corporate job. The top jobs that companies are looking to be completed by a freelancer, compared to a full-time employee include:
- Network and system administration
- Search engine marketing
- Product design
- Mobile development
- Email and marketing automation
The gig economy has introduced significant opportunities to expand your workforce, without committing to long-term contracts for high-level employees. These short-term projects will help increase your company’s skills and potential without fully committing to a new hire.
Reduce Overall Risk
Freelancers can fill in any gaps your business may have in key areas. This allows you to focus on your core strengths and quickly grow your company, as it requires less financial investment in human capital. With freelancers as part of your team, your business can still grow without any concerns about complying with labour laws or overpaying taxes.
When you hire through the gig economy you reduce risk by:
- Not needing to pay additional fees in insurance
- Reduce liability in workplace harassment, unfair dismissal, or discrimination
- Freelancers are easier to part ways with
- Freelancers don’t have access to a lot of sensitive information
Hiring through the gig economy on a project basis can save your business money and provide you with a competitive edge. By outsourcing minor tasks, you are allowing yourself to focus on core areas where you have true passion and talent, while also freeing up time to focus on other aspects of your business.
The gig economy has made high-quality talent more accessible than ever before. Companies are now able to get access to top-tier talent from across the globe without the traditional liabilities of hiring full-time employees. Hiring freelancers to be part of your team offers your organization more flexibility and options on a per-project basis. But before you hire freelancers, make sure they're vetted thoroughly through background screening efforts. In doing so, you can provide peace of mind for your clients while still securing the best candidates.
If you need help figuring out how to use the gig economy without risking liability, book a meeting with one of our industry experts today! We are experts on background screening and would love to share our knowledge with you so that together we can create an amazing plan that incorporates freelancers while minimizing risk for your organization.