The gig economy may be getting a bad press in 2017, but global mobility managers are being urged to understand it better, after research suggested the practice will only grow in future. While some industries, such as oil and gas, have a long history of supporting external ‘gig’ employees, it is the adoption of the practice by start-ups like Deliveroo and Uber that has caused controversy, and fuelled interest in the practice.

Seeing the lighter side 

Much of the debate in the media is around a lack of security and rights for those working on zero hours contracts. However Lisa Johnson, Global Practice Leader at Crown World Mobility consulting services, a company that helps corporations manage global talent, says the focus in future should be on how to attract highly-skilled workers into temporary posts – and how to support them. She said, “The news agenda has lingered on negatives but the gig economy refers in general to a work environment where temporary contract positions are common and companies use independent workers to fill short term engagements.“The focus in global mobility should be on how to support a growing and independent talent pool which could be crucial to business development in future.

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Find out more about the future of the gig economy:

• Gig economy growing, but wages for self-employed falling
• CIPD gig economy study sets stage for Taylor Review
• RSA proposes gig work charter

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“A recent Intuit study predicts that by 2020 up to 40 per cent of US workers will be independent contractors – and you’d expect that figure to be replicated in other markets too.”Lisa Johnson believes companies will have to do more to attract young talent with desirable skillsets in future as more and more workers choose to maintain a self-employed status.“I haven’t yet seen data for the UK, or other parts of the world, but there is little doubt that the trend is growing,” she said.“The issue of ‘perma-temps’, where companies don’t want to fully commit to hiring a full-time employee, adds confusion to the numbers. But the feeling in global mobility is that Generation Y and Z are increasingly enticed by the freedom the gig economy can provide. 

Liability in a gig economy

There are complications in store, however. The debate around zero hours contracts is intense, while the issue of liability has yet to be resolved.“This is a murky one,” said Lisa Johnson, “Is a corporation liable for gig workers or are they liable for themselves? And will countries develop visas to allow for the movement of contract employees? Whatever the answers, it is certainly a challenge for compliance.“It also means that a company’s focus in future may be on the skills that workers have to offer rather than on their long-term career – and that’s a big change in global mobility where international assignments are often seen as part of the leadership ladder.“As more and more workers enter the gig economy, the discussions surrounding it may well change. The big discussion may be about how businesses can compete effectively for independent global talent rather than how they exploit them. Certainly the issue isn’t going away – so global mobility managers need to get to grip with it as soon as possible.”For related news and features, visit our Serviced Apartments section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

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