But the nature of work in America is changing. 57 million people in the United States are presently employed in the gig economy. This pool of contract-based labor has very different needs from traditional part-time or full-time employees.
For employers, this means an entirely new set of government regulations – many of which are outdated and/or changing to accommodate this shift in the employment landscape. Let’s take a closer look by starting with what is generally the first interaction between HR and an employee:
What does employee onboarding look like in the Gig Economy?
In the gig economy, HR interactions occur within a website or an app. Contractors rarely have an assigned HR manager. In fact, I’d challenge you to find a single gig contractor that can name a member of their HR team.
For an example of what this looks like, take a look at this outline of Grubhub’s driver requirements. Grubhub is a platform that allows vetted (as in verification of employment) drivers to deliver food to people in their local community. A potential contractor downloads the “Grubhub Driver App” and fills out a form.
Instead of asking for a copy of a resume outlining an applicant’s recent employment history, their primary concerns are:
- What kind of mobile device do you own? (BYOD is mandatory.)
- Which modes of transportation do you have access to? (Personal Vehicle, Public Transit, Etc.)
- Do you have a checking account to accept direct deposit? (You won’t find old-school paper paychecks and paystubs in the gig economy.)
- Can you pass a background check? (The depth and breadth of background checks vary from platform to platform and are rarely published.)
Once the contractor submits their application, it’s reviewed and either approved or denied. Grubhub is one of the few platforms to even offer an optional in-person interview. Everything can be conducted remotely. The interview is less about their application, and more centered on driver education – ensuring that the contractors on their platform understand how to provide safe, high-quality customer service to their users.
Incident Response Teams: Human Resources Meets Customer Service
The primary role of HR personnel in the gig economy involves handling incidents between contractors and customers. When a customer files a complaint, or a contractor reports an incident, HR investigates and takes corrective action, where appropriate.
The customer service team handles the interaction with the customer – collecting a statement and potentially offering compensation. The HR team is engaged to deal with the contractor.
For HR professionals and the companies they work for, it feels like policies and procedures are being created as they become necessary. Uber – one of the world’s most popular ridesharing apps – has created a “Special Investigations Unit” to handle driver and rider emergencies.
The problem is that it’s hard to forecast the labor requirements for this division. And, as Uber ramps up for an IPO, it appears that they’ve failed to allocate resources to a team that is stretched thin. CNN reported in January that Uber’s SIU is “stressed out and at risk…The internal investigators tasked with keeping Uber safe were overworked, underpaid and at times emotionally traumatized as they struggled under the burden of nearly 1,200 cases every week…”
The story shines a light on how the changing HR landscape in the gig economy is impacting the profession. From onboarding to handling intense situations involving contractors, HR will continue to evolve in an increasingly independent workforce. And few can provide a clear roadmap or destination for this journey.
