Are Human Resources Ready For Gig Economy?


Amid COVID-19, every form of economy is reshaping, and so is the gig economy. The gig economy, also known as the agile workforce, freelance economy, or even temporary work, is moving toward the progressive scale in the pandemic times.

Musicians performing at a place are often referred to as taking on a “gig.” Working in the gig economy is carried out in the same way. No traditional, full-time, in-office job with a single company, but gig workers work as temporary, short-term, or independent contractors for one or multiple companies.

Changing role of HR in gig economy

The role of human resources is changing with automation and more digitized responsibilities. However, some parts of an HR’s responsibilities will remain unchanged. Implementing emerging trends to improvise compensation, performance evaluation, and the overall employee life cycle needs human guidance. HR departments are continuously focusing on developing strategic plans for gig workers in all aspects, which implies that human resources are already aware of the gig economy’s growth and its consequences on their organizations.

Vigilance about the gig economy illustrates how HRs design robust methods for proper recruiting, hiring, assessing, and managing gig workers. Looking at the changing role of gig work makes human resources aware of the best practices and legal requirements in creating policies for areas under the gig economy. Remote work is amongst the primary areas of it.

As the gig economy continues to grow, evaluations, and development in the human resource will continue to evolve for this unique workforce.

Challenges for HR in gig economy

Embracing the gig economy involves various challenges for human resources –

  • Managing a talent pool and develop a value proposition for the employee that works across a mix of permanent and portfolio work
  • How to incorporate contract terms and conditions into a coherent, seamless form, and provide appropriate benefits and incentives to become an employer of choice for a gig worker
  • Ensuring that the right technology is in place to automate processes that help in the smooth enter and exit of gig workers, and ensure that it is seamless and easy to manage to decrease the workload of HR administration
  • Establishing what ground rules for risk management and governance should be formulated for portfolio staff involved with various employers, including rivals
  • Managing quality control and ensuring that contracts are not only the cheapest but the most effective or best bidder
  • Ensuring that line managers operate under the radar and give their full attention to work, while also managing their work hours, health and safety, and the regulations on minimum wages

More than work-life balance, gig workers want freedom and autonomy.


The gig economy has turned out to be the light at the end of the current tunnel.

The gig economy is something that is never going to fade away. Contradicting to it, this particular line of work will only be seen as a growing field with an unending full stop. To tackle this, HR needs to be completely prepared and find measures to handle potential gig work efficiently in their organizations.

The rising impact of the gig economy is never going to fade away. If history is to repeat itself, this particular line of work will see further development. This means that HR now has the opportunity to proactively plan how best to address future gig work within their organizations.

Exploring newer potential opportunities for the gig workers, enacting different policies, or creating a good work culture is amongst various parameters that any organization can make use of to let gig workers feel an active part of the organization.


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