The accelerated growth of the gig economy presents both opportunities and challenges for employers.
- Compliance strategies must evolve to meet the demands of the burgeoning gig economy.
- The rise in gig work has prompted concerns over identity verification and fraud prevention.
- HR professionals face increased competition for talent due to gig work preferences.
- Adaptability and robust compliance processes are crucial for businesses to thrive in this changing landscape.
The gig economy is expanding rapidly, creating significant opportunities for businesses. However, with this growth comes the need for enhanced compliance strategies. Sterling, an expert in employment screening and identity verification, highlights the importance of robust compliance measures to capitalise on these opportunities and mitigate disruptions to hiring strategies. This need is underscored by Uber’s recent financial success, driven by a 30% increase in gig drivers.
A core challenge in managing gig workforces is ensuring effective identity verification and Right to Work checks. These processes must be robust enough to prevent fraud, especially since face-to-face interactions with gig workers are rare, making it difficult to confirm that the individual paid is the one vetted. Employers are thus urged to identify individuals with a history of fraudulent work to protect their business and customers.
The gig economy’s growth exerts pressure on HR and talent management teams. As more workers show a preference for gig or gig-like employment models, permanent workforce shortages become more pronounced. Sterling’s data reveals that 40% of HR professionals are increasingly competing with new employment types like gig work, contributing to skill shortages.
Steve Smith, President International at Sterling, commented on the complexities of engaging the gig workforce compliantly. He noted the necessity for employers to adapt to this shift, emphasising the growing concern among HR professionals about emerging employment models. Despite these challenges, he stressed that the gig economy is here to stay.
Smith also noted the need for businesses to be equipped with tools that allow them to adapt quickly and seamlessly, avoiding any compliance risks to their business, staff, and customers. Advances in Digital Identity have already facilitated faster and more flexible recruitment of gig workers. Even those familiar with the gig economy must ensure their ability to scale up or down their screening and employment processes swiftly to match the workforce’s pace of change.
The future of the workforce lies in flexibility, and businesses must prioritise compliance to succeed in the evolving gig economy.
