Gig Work: What Employers Need to Know
One of the many trends that has emerged following the pandemic is the disruption of the standard relationship between employer and employee, giving rise to a greater amount of gig work. According to a report commissioned by human resources firm Ceridian, 70 per cent of Canadian employers expect to hire more freelancers over the next two years. More telling is that 64 per cent of surveyed employers believe gig work will substantially replace full-time work in the next five years.
Employers and Employees
From the employee’s perspective, many no longer feel tied to a physical workplace thanks to remote work capabilities, expanding the possibility of working with multiple employers. Gig work also offers the potential for greater work-life balance and greater flexibility to take extended time off between jobs.
For employers, the present labour shortage is forcing their hand to embrace gig work to fill vacancies. However, with uncertainty still looming in this new normal, employers can also benefit from the flexibility of gig work. Unsure about future labour needs, gig work and short-term contracts allow companies to be more agile with staffing.
Gig Work Here to Stay?
But the current labour shortage and the demand for flexible work arrangements started long before the pandemic, which has only exacerbated a trend over a decade in the making. In a BDC report, 55 per cent of businesses indicated they are struggling to hire workers while another 26 per cent are struggling to retain their workers. However, the report also indicated that companies that offer flexible work arrangements could be 1.4 times more likely to retain workers compared to companies that do not.
In March 2021, the federal government published a consultation request, reaching out to gig workers to share their thoughts and experiences in order to inform an updated federal labour regulations. Provinces are also individually re-assessing their labour regulations to reflect the increasing number of gig workers more accurately.
One of the challenges for employers looking to embrace gig work is trying to vet the revolving door of workers. Overburdened HR departments likely do not have the time or resources to perform thorough background checks. One estimate figures each bad hire costs nearly $15,000 and over half of senior managers believe the negative impact is getting worse.
Outsourcing your background check duties to a third party like Triton will ensure you get the information you need while lightening the load for your busy HR professionals. Our comprehensive background check solutions can also integrate with any of your existing applicant tracking systems and HR software, optimizing your onboarding process.