HR in the Gig Economy
Posted on 16 February 2021 in Business | Gabriel Chua
What is the Gig Economy?
At the dawn of the 2010’s, the world saw a rapid increase in the development of new technologies that changed the world as we knew it. Organisations across all industries started to leverage upon this technology to drive their business further forward into the 21st century. This has not only brought about opportunities for businesses, but for individuals too.In the US alone, nearly 16.5 million people are working in 'contingent' or 'alternative work arrangements'.
Increments in such sorts of working arrangement has given rise to what we now know as the Gig Economy. With the Gig Economy, Human Resource processes that have served companies for decades have to be altered.
Increasingly, the world economy is highly susceptible to external factors, for instance, COVID-19. Situations like these have forced businesses to reconsider their operations and as such has caused many organisations to look toward newer, mobile technologies to survive adverse working environments. Undoubtedly, there is a new need for greater, and more efficient management of resources and without proper preparation, a once successful company may get left behind in this new digital and on-the-go age of the Gig Economy.
What does this mean for HR Operations?
Efficient Attendance Tracking
As the world continues to digitalise, gone are the days of manual data collection and storage as more companies look towards newer and more innovative measures such as biometrics. This means no more punch-cards, no more sign in-and-out sheets and a reduction in unnecessary administration work. This additionally helps companies reduce their carbon footprint, as consumers and stakeholders grow more concerned about measures of sustainability.
At QuickHR, we use our own state-of-the-art Biometric system for attendance tracking, overtime calculation and monitoring store traffic. With the Gig Economy, many employees are working from home or off-site. Manually documenting all these is tough, not to mention a waste of paper, time and other resources. By using a Biometric facial recognition device no matter where employees are working, all data collected will automatically be transferred into the attendance & scheduling function in a HR System, fully integrated with other functions such as leave and claims.
Consequently, this means a more efficient way of working, both for general employees, managers and HR staff. Such a method of tracking employee attendance is undoubtedly the way to go to keep up with the fast-paced business world of the Gig Economy.
Flexible Payroll Systems
In 2020, it was reported that there were 211,000 Gig workers in Singapore, up from 200,000 in 2016. Additionally, 80% of individuals from this group indicated that freelance work was their primary source of income. This suggests that slowly but surely, the popularity of traditional work is on the
decline.As a consequence, running payroll will no longer be a straightforward process as a result of increased arbitrary and complex working arrangements.
With more workers on the go, HR may need to run payroll for many different kinds of workers – daily-rated, shift-rated or on a per-month basis. As a result of the changing landscape with regards to work scheduling, HR managers would have a tougher time calculating and processing the salaries of workers, which heightens the risk of leaving employees with improperly issued salaries. This would lead to unsatisfied employees while also causing additional contributions such as
income tax and CPF to be made more complex. This has resulted in many companies turning towards various forms of flexible e-payroll systems like QuickHR . Such systems have many multi-faceted features which allow for multiple pay-runs to be punctually and accurately processed regardless of employment type, while also possessing automatic inclusion systems for a smooth CPF and IRAS submission. Possessing such features, payroll runs will be made all the smoother to quicken operations about the workplace.
Inevitably, with the rise of the Gig Economy, companies are seeking more efficient methods of managing payroll runs and salary issuances. This reduces time spent on lower-level operational HR activities such as data entry, and frees up time for the HR team to focus on more strategic planning to grow the business, especially important in this age where business conditions are highly volatile.
Robust Hiring Processes
In this economic downturn, many companies have frozen or reduced hiring greatly. This has resulted in a greater number of applications for each job role. In addition, in recent years there has been a reduced emphasis on formal qualifications, and a match of work experience, with a greater focus on soft skills of candidates . How then, can you still efficiently sort through candidates to find one who will be a great addition to your team?
To aid your recruitment efforts, there is a need to utilise a quickfire, yet accurate and consistent method of hiring the best applicants via Applicant Tracking Systems , (ATS). ATS are now more important than ever, with robust features that can help filter for the best hires possessing the most relevant skillsets and qualifications. Once these applicants are selected and hired, ATS make the onboarding process easy, automatically transferring all necessary data to an organisations’ employee database. Efficient and quick, these systems are equipped with the necessary facets to simplify the onboarding process.
In the Gig Economy where everyone is on the go, organisations are always on the lookout to snatch up the best talent to empower themselves via a more skilled and effective workforce. Thus, it is necessary to take action now and utilise an ATS, like QuickHR’s, to maintain a strong market position amidst uncertain nature of business environments.
Going with the Gig
The changes brought about by the Gig Economy have unquestionably revolutionised the way the business world operates. As the world continues to move away from traditional operations, Human Resources also has to move with the times and adopt the newest trends and technologies to drive their business further forward. It is only by embracing change can they truly maintain a competitive edge.
In preparing for the Gig Economy, do consider QuickHR, an award-winning HRMS. With a biometric system for attendance tracking, flexible payroll and a robust applicant tracking system, you'll be able to automate your HR processes and the let the software do the heavy lifting thus allowing you to focus on the things that truly matter.
Once again, we hope that you've enjoyed a good read. And remember, Think Now, Think Far, Think QuickHR.
* Get in touch with us at https://quickhr.co/ to find out more about our state-of-the-art HRMS solution!
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