The Gig Economy: Distraction or Disruption?

Posted in : HR Updates ROI on 22 February 2017
Carol Tully
Issues covered:

With the emergence of robotic technology, smart machines and an increasing reliance on freelance workers, organisations are facing disruption from the expanding “gig economy”, where networks of people now make a living without formal employment agreements.  Deloitte’s 2016 Human Capital Trends Report has highlighted this movement revealing that 42% of executives surveyed expect to increase their use of contingent workers, and 43% anticipate a greater deployment of robotic solutions in the coming years.

Companies are struggling to meet the demands of an increasingly blended labour market, with questions arising on how to manage and motivate all types of workers that together influence a company’s reputation and brand. Deloitte’s research has revealed that the top issues associated with the emergent “gig economy”, are legal and regulatory uncertainties, a corporate culture unreceptive of contingent staff and a lack of motivation among leadership. It is increasingly becoming evident that successful competition requires today’s HR organisations to adapt to the changes that are shaping the 21st century workforce.

In light of this emerging workforce transformation, there is an onus on HR and business leaders to understand their organisation’s need for a variety in types of workers and automation over the medium to long term. An organisation’s ability to compete will depend on their ability to produce robust plans for different types of labour and technology combinations. Corporate technology, procurement and business strategy teams should join HR to produce these plans and ensure that organisations are leveraging this disruptive new workforce.

Click here to download the full report: 'The Gig Economy: Distraction or Disruption?'

This article is correct at 22/02/2017

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Carol Tully

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