Tapping into the gig economy: how independent workers can plug into the skills gap

Freelancers. Contractors. Consultants. Project-based workers. Part-timers. Different titles. Same gig economy. In case you hadn’t heard, the gig economy is booming around the world and Australia is no exception. Even before the pandemic, the value of Australia’s gig economy saw a nine-fold increase between 2015 and 2019, with a gain of 32% alone in 2019. And there’s no sign that it will be slowing down any time soon.  

So what’s the big appeal, and how can both independent workers and businesses make the most of this changing employment dynamic?

What’s in it for the independent worker

There are several reasons why people may choose to work independently. For example, they may be frustrated with the traditional workplace environment and yearn to be their own boss. Or they may have a highly valuable skillset that gives them the freedom to choose the number and type of projects they work on. Independent work also holds a lot of appeal for those trying to break into a specific industry, since many types of freelance or contract work have a lower barrier to entry compared to full time roles. It also offers people: 

• Greater flexibility and autonomy - being able to choose where and when you work allows independent workers to manage their time to suit their lifestyle and enjoy a greater work-life balance. Many others find it liberating to not have to depend on a single employer for all their income.  
• Increased income – many freelancers or contractors enjoy an increase in income, although it should be noted that they do not get paid sick leave or holiday pay. At the same time, freelancers typically work more than one job at a time on an ad-hoc basis. Freelancers with high-value skillsets often command a premium for their services, which can often outmatch the payscales of traditional employment. 
• More variety - even though they’re being employed to do what they’re qualified to do, they are working with different people, on various types of projects in different environments. Many find this level of variety exciting and engaging, keeping them passionate about their work. 
• The ability to chart their own career path - Freelancing often also offers opportunities to work in aligned areas they may have been keen to explore but weren’t given the opportunity in traditional employment. It offers workers the freedom to specialise in a niche that deeply interests them or become generalists who work across multiple areas. 

What’s in it for employers

Short-term contracts and freelance work are not just empowering for the worker. They also offer many benefits to businesses, including: 

• Instant access to a global talent pool.  
• The ability to upscale and downscale, as needed, to eliminate bottlenecks, surges in demand or to hit the ground running on newly acquired projects or clients while looking to find permanent hires. 
• Reduced labour costs; hiring per project is often more cost-efficient. 
• Less HR stress and admin required as job expectations and duration are already agreed.  
• The opportunity to build a network of high quality, skilled contractors who understand the way you work and can slip into your work culture with relative ease.

And speaking of good cultural fits…

Businesses that decide to work with independent contractors need to understand that culture still matters. If you want to attract high-quality contractors, your company still needs to be a great place to work. Equally, an important part of retaining high quality freelancers is hiring people who understand your company values and are the right cultural fit in the first place.  

Workers who are a natural fit for an organisation’s culture get along well with other employees, have a positive experience during their contracts, and experience the sense of belonging and shared purpose that can fuel greater commitment to the job at hand.  

While contractors, consultants and freelancers are used to working across a wide variety of environments and personalities, they still need to feel supported, valued and trusted to do their best work. While they may be an independent worker, they will not be (and should not be) working in isolation. You need to make sure they work and play well with your current team, and both parties have a positive working relationship. Here’s how you can help make sure they work well with your team: 

• Listen to your employees - they can be extremely useful in ensuring cultural fit as peer-rated feedback is one of the most valuable indicators, particularly where teamwork and collaboration are essential. They can also relieve pressure on human resources when it comes to finding talent; employees have valuable contacts amongst people they have already worked or networked with, reducing the need for significant backgrounding in assessing potential contractors. HR can also set up best practices for contractor hiring and onboarding to provide managers with a streamlined system that allows them to do the hiring, particularly for smaller or niche projects.  
• Avoid ‘otherness’ - another key factor in maintaining a healthy company culture when you have both contractors and permanent employees is making the effort to ensure contractors feel welcome and valued. Be available for onboarding and one-on-one introductions with their teammates. Invite them to company events and include them in important meetings, either in-person or via video. Take advantage of communication platforms, such as Slack, to keep a constant flow of dialogue open. This is particularly important if the contractors are working remotely. 

There’s no doubt that the gig economy will continue to grow as talented professionals look to manage their life in a way that allows them to work flexibly with different organisations and on different projects that play to their strengths. And the timing couldn’t be better for businesses. In the current climate of uncertain conditions, being able to draw on this talented pool of independent workers, as and when you need them, is a smart way to ride the difficulties of resourcing and managing hiring demands.