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Why All the Fuss About Gig Workers?

Industry Trends and Research

While much has been written about the topic, new research suggests that some common thinking about “gig workers” simply doesn’t hold up.

Despite the popular perception that most external workers can’t find a steady full-time job, a large majority of respondents (74%) in a new survey from SHRM and SAP SuccessFactors indicates that is not the case.  

Nearly half of all external workers reported that “this is just the type of work I’m doing right now,” and among the 11% of external workers who selected other, the most common open-ended responses were “for supplemental income” and “to do something I enjoy.” Temporary workers were the only group for whom “I’d prefer an internal job” reached the same level as “this is just the kind of work I’m doing right now.”

In addition, the study shows that nearly one in five external workers prefer external work, and about one-third reported earning more money as an external worker. When asked what persuaded them to become an external worker, respondents cited three top reasons:

  • Setting their own schedule (49%)
  • Choosing how many hours they work (40%)
  • Working from any location (33%)

Notably, workers and organizations shared two major reasons for their interest in external work: autonomy and flexibility. Workers want flexibility in hours and location, while employers appreciate the flexibility to increase and reduce their workforce based on business demands.

What Motivates You?

SHRM’s research also found that both managers and HR may not really understand what motivates external workers and makes them feel most positive about work. For example, managers and HR both overestimated the extent to which the opportunity for an internal position motivated external workers and somewhat underestimated external workers’ interest in bonus compensation for good work.

When asked to speculate on which benefits might attract external workers to their organizations, managers and HR overestimated the value of both health care and paid time off to these workers. In contrast, retirement benefits were far more important to external workers than either HR or managers believed.

Also of note were the legal challenges faced by HR in dealing with external workers. Nearly three out of four HR professionals reported concern about the legal landscape of external workers. When asked about the biggest challenge they would like to see resolved related to external workers, many HR professionals cited legal ambiguity regarding the use and management of external workers as their greatest concern.

With the size and importance of the external workforce continuing to grow, Autumn Krauss of SAP SuccessFactors suggests that it’s important to create conditions where external work is a more viable work arrangement for businesses and workers alike. “Our research with SHRM will help organizations increase the maturity of their approach to external workforce management through better cultural integration, total workforce practices and technology applications, resulting in a positive external worker experience and business impact,” Krauss notes.   

The study findings were drawn from the results of two surveys: one comprised of more than 1,700 interviews of managers, external workers and internal employees conducted in April 2019 by NORC at the University of Chicago using the Amerispeak Panel and supplemented with 102 interviews; and a second conducted in March and April 2019 that surveyed 1,178 HR professionals randomly selected from SHRM’s membership. 

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