The economy is giving companies mixed signals these days. Costs are rising, supply chains are unpredictable, and we’re still dealing with the effects of over hiring during the pandemic. That means skilled labor is still hard to find and comes at premium prices. One possible solution has been around for a (very long) while but is still underused by most companies.
It’s time to get serious about gig workers.
Hiring gig workers makes a lot of sense for most companies; I’m not sure why they’re used in just a few roles. When companies have IT projects, website builds, or branding overhauls, they almost always contract for these services instead of hiring a full-time employee.
For those kinds of projects, hiring a skilled freelancer or contracting with a specialized company makes sense. You get to set the parameters for the project and sign a contract that holds the company or professional to specific performance standards and deadlines. There’s a well-defined start time and finish line for the project, and everyone is clear on what will happen and who’s in charge.
When viewed from this perspective, hiring a permanent employee feels much more risky. You seldom get a glimpse into their actual performance before you bring them on board. You deliver a position description, which is your one-sided version of a contract, but there’s not negotiation and no contractual obligation from the employee. That’s why it takes so long to document, discipline, and release a full-time worker. When a contractor isn’t performing, the course of action is much clearer and much quicker.
When you hire a gig worker, you’re hiring a specific set of skills on a limited basis. Gig workers, by definition, have specialized skills or experience, and bring their “A” game to every gig (or they don’t last long in the free market.) They are expected to have a short learning curve and add value from day one. If you don’t have the expertise to identify what skills you need, or to train and oversee a certain skill set, you’re probably better off hiring a freelancer than an employee.
Gig workers, unlike traditional employees, don’t just follow orders. Good ones will become your partner in the work you’re doing. They’ll give you the benefit of their experience, helping you avoid pitfalls or wastes of time and money. They’ll make suggestions and bring up ideas you might never have thought of on your own. They’ll be up to date on the latest technology, trends, and topics that will make the project better.
They also don’t waste any time on the job. They either charge by the hour and must provide full value for every hour, or they bid a flat rate for a job. That means they are highly motivated to be efficient with their time, since every minute saved means they’re earning more. You can’t say that for most traditional workers. Don’t let the hourly rate on the invoice fool you; a disengaged employee will cost you significantly more than a serious and professional gig worker.
So why doesn’t every company have a contingent of gig workers alongside their regular workforce? Some employers still cling to the idea of “owning” their employees; being able to add on work, change duties, and move staff to other roles as needed. You can’t do that with a contractor; the contract protects and specifies what the contractor is willing to do. Changing the terms of the work can get expensive. Need the contractor to finish the work weeks sooner than you originally specified? Are you now thinking you should have gone in a different direction on design? You’re likely to be charged a premium for rush jobs and other significant changes or requests.
Some employers aren’t used to sharing. Gig workers will almost always have multiple clients; basing their income on a single client is a huge risk for them. So you’ll have to be well organized and understand that your contractor will have other obligations. Last minute requests and dithering will be hard to accommodate.
If you’re a company owner or manager who believes that time is money, you should be considering gig workers as an alternative to full-time hiring. When you have a problem to solve, a project to launch, or a chance to pursue something new, a gig worker may be the best and most cost-effective use of your resources.
Want to know why gig workers are different (and special)? I’ve written a book about the The Gig Worker Mindset. Find it here.
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