Web Exclusive - March/April 2018

Motivation in the Gig Economy

Businesses Converting Full-Time Jobs to Freelance

By Deborah L. Vence

Businesses are soon expected to convert more full-time positions into freelance or contingent roles.

According to the Q4 Talent Trends report by Randstad Sourceright, a company that specializes in global talent solutions, "more than half of global human capital leaders expect to transfer one-third of their permanent positions to contingent roles in the near future."

For instance, 61 percent of employers indicated that they plan to replace up to 30 percent of their permanent positions with freelancers, gig workers and independent contractors to become more agile and flexible in the changing economy. This was based on a survey of more than 700 global human capital leaders. What's more, nearly 40 percent of employers surveyed expect that they will be able to reduce the impact of talent scarcity by having an integrated hiring strategy.

"Companies are increasingly embracing gig workers, and even robots, in their overall workforce to address the increasingly tight labor market in the U.S. and around the world," stated Rebecca Henderson, CEO of Randstad Sourceright.

Nearly 70 percent of employers surveyed stated that they believe the skills gap is widening and will create significant challenges in the near future, which is why a vast majority of companies agree that all available resources should be considered to combat recruitment challenges.

According to the report, companies are investing more in training programs to meet the growing demand for talent. Fifty percent of employers indicated that they have increased budgets for reskilling programs in 2017, and 52 percent stated that they are investing in training and development technologies at moderate or significant levels.

In addition, the 2017 talent trends key findings include the following:

  • Talent scarcity: 69 percent of employers said the talent gap is widening and will create greater challenges in the near future, while 25 percent consider talent scarcity to be their largest concern.
  • Contingent workers: 61 percent of human capital leaders said they expect to shift more of their roles to contingent workers in the next 12 months.
  • Global workers: 74 percent of those surveyed believe the right person for the job may be an employee, contractor or contingent worker from anywhere in the world.
  • Upskilling: Half (50 percent) of the employers surveyed said they are increasing their budget to invest in programs that help their workforce advance their careers through upskilling.