What Malaysian Employers Need to Know About The Gig Economy
Updated: Sep 2, 2020
If you’re not convinced by the impending rise in the gig economy yet, here are some vital statistics to take note of:
According to research by Upwork, a global freelancing platform on the gig economy, 42% of people aged 18 to 34 are engaged in independent work.
26% of the 15.3 million Malaysians who are part of the workforce are in the gig economy, and this number is expected to grow.
By the year 2025, the gig economy is set to bring in US$2.7 trillion to the world.
Hence, as employees are looking for more flexibility, the gig economy appears to be here to stay.
The COVID-19 pandemic has also brought about a sudden change in the economic landscape for many businesses and individuals. It has brought about an increase in demand and supply in the gig economy. As companies are facing the prospect of downsizing their full-time workforce, this leaves a gap within organisations which can be filled with short or long terms solutions via the gig economy. Hence, if you're ready to explore this in the 'new normal,' here are the top 5 things you'll need to know.
When hiring freelancers or temporary workers, it is crucial to identify the gaps that need to be filled within the company. The last thing you’d want is to hire a group of people who are doing the same thing, which will then increase your overall labour cost unnecessarily. This may not be an issue for general workers, but crucial if the gap you have identified can only be filled by someone with a specific skill set.
Access to expertise anytime
As freelancers are usually experts in their field, hiring them would give the company and existing employees access to their knowledge and skills, without being tied down to a long-term commitment. This often allows companies to achieve their objectives better at a lower cost.
Increased productivity (when needed the most)
Looking for a full-time employee with a specific skill set often take time and effort. Opting to hire a freelancer or temporary employee will allow work to continue as usual or even to kickstart projects without any further delay. For some companies that are sensitive to seasonal demands, the contingency workforce is a great way to ensure these demands are met.
It is understandable for a company to expect full dedication from their employees; however, expectations may need to be managed for temporary workers. This is particularly so for freelancers. They are often juggling a few projects at the same time and jobs that pay better are given more priority. Hence, be sure to set expectations right at the beginning of the project to ensure a positive outcome for both parties.
No need for benefits
A temporary workforce will cost less because they are not entitled to the same benefits as a permanent employee. This means, fewer business monies spent on medical, insurance, EPF, SOCSO and so forth.
While the gig economy working arrangements may be an excellent way to fill employment gaps during these trying times, it is of utmost importance that companies take into consideration its own needs, and expectations before embarking on a freelance or temporary workers job hiring frenzy. After all, every company is different, so be sure to speak to your existing employees and recruitment consultants that will be able to give you the best advice for you and your company.
To find out more about the benefits of hiring gig professionals and how CXL Executive can help with the placement of gig economy professional in your workforce, find out more here.