With Uber making headlines after the landmark decision against it awarded two of its employees the right to The National Living Wage, sick pay and holiday pay, the world of HR has much to say on the ruling. The implications on the Gig economy in particular are feared and with the world of work changing so rapidly, we’ve taken a look at when it all started and how the increase in small scale entrepreneurship is affecting recruitment.
The Gig Economy
The Gig Economy is defined on Google as:
“An environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.”
And when you look at how it started, it’s easy to see that a number of groundbreaking technology giants have largely shaped the way for its inception into our professional lives. Let’s look closer at how The Gig Economy began.
The Timeline
1999 – Arguably one of the first of its kind, the freelancing website Elance (later becoming Upwork) was launched giving the self-employed a hub in which to find new projects. Odesk, another similar service, also merged with Upwork later on, combining forces with the freelancing giant.
2008 – TaskRabbit and Airbnb launched. TaskRabbit is another online marketplace that matches tasks with talent. It provided freelancers with one more option for finding work online. Airbnb is a peer to peer online marketplace for property where people can rent out or stay in other residential premises. This company created an opportunity whereby people could now earn money from their home for the first time – whenever they chose.
2009 – The mighty Uber launched, turning the taxi industry on its head. Drivers simply logged on to the app to begin working in multiple territories whenever and wherever they liked.
2010 – Wework launched, a set of business locations whereby people and companies could rent deskspace by the day, hour and month as and when needed around major cities.
2013 – Deliveroo launched – a food delivery service whereby workers are offered much the same flexibility as above.
It’s useful noting the economic downturn and ensuing global recession that took hold from 2008 onwards. Recruitment reports at the time were of huge numbers turning to self-employment out of a struggle to find work – a need met for some by these companies.
2014 – The right to request flexible working after continuous full time employment of 26 weeks or more came into force, bringing flexible working to the fore of employee’s minds.
2015 – The Guardian reported on The Gig Economy and debated whether its model of working offers greater freedom and “boundless innovation” for entrepreneurs, or a “dystopian future of disenfranchised workers” moving from job to job as an alternative to steady full time employment.
2016 – A landmark judge’s decision indicates that Uber – a key proponent for the gig economy – is indeed an employer to the two Uber drivers claiming against it and must grant the living wage and holiday pay. This has implications on all the above companies, and whether their workers are self-employed at all.
How Has The Gig Economy Affected the Recruitment Marketplace?
More Technology Jobs: It’s clear that technology giants are among the main instigators of this new way of working. It also appears that it’s something we enjoy. If we look at the numbers surrounding opinion of The Gig Economy, many involved in this type of work do not wish for the benefits of holiday or sick pay, instead relishing the freedom afforded to them.
Increased Flexible Working Demand: The Guardian reported that an estimated 14.1million workers in Britain want flexible working, however only 6% of jobs offer it. The Gig Economy does come with less stability, but it does offer flexibility – something much in demand.
Constant Customer Feedback and Transparency: We’re constantly being asked for our feedback nowadays, and the feedback oriented culture of Uber and other companies have made this a key part of business and recruitment.
More Digital Channel Recruitment: Perhaps the biggest effect is more emphasis on digital channels for recruitment. We’re big believers in this as we operate our recruitment service solely online, and for the sake of speed, immediacy and sourcing candidates, recruitment is more digitally based now than it ever has been before.
Castle Hill House