Exclusive interaction with Brian O’Connor, Talent Acquisition Recruiting Manager, DailyPay

“Gig And Traditional Employees Serve Different Purposes, And Necessary For Development”

 

“The Gig economy is not disappearing anytime soon. In fact, we expect to see an increase in gig workers this year,” notes Brian O’Connor, Talent Acquisition Recruiting Manager, DailyPay.

In an exclusive interaction with HR.com, Brian talks about his experience with gig workers at DailyPay, how companies can attract and retain gig workers and what can CHROs do to manage this section of workers effectively.

Excerpts from the interview:

Q: Gig economy became more prevalent after the onset of the Covid-19 pandemic. Today, unlike before, more skilled employees are taking up gigs in the field of IT, arts, graphics, marketing, etc. How should employers and employees prepare to adapt themselves to this new way of working?

Brian: It all starts with a change in mindset. Employers need to have an open mindset about hiring gig economy and embrace the changing work structure. Once businesses recognize the benefits of incorporating on-demand workers into their system and are ready to set up an internal structure, employers should take time and set up career pages on gig economy hiring platforms. Visibility is key to attracting quality candidates and will help companies build a robust gig economy hiring system.
 

Similarly, employees need to be on the right platforms when looking for opportunities. There are gig platforms solely dedicated to specific industries and skills. To hop on the right platforms, individuals should review their skill sets and consider what jobs they want to take on. Along with gig economy job boards, networking is key to finding work and building a portfolio of clients to work for. So connect with fellow gig workers as well as businesses. You want to cast your net out wide into the sea, increasing your chances of getting that opportunity.

Q: What has been your experience with the growth in the Gig economy at DailyPay?

Brian: At DailyPay, we bring on freelancers from the creative field to help us with big campaigns. We have a growing team and it takes time to find the right candidate to add to our team. So, we rely on contract workers to help meet deadlines and fill in the areas that our team may lack. Whether freelancers stay on with us only for a single project or a long-term engagement, we ensure to create an inclusive community and ensure that they are aware of the company’s direction. 

Q: Is Gig economy here to stay? Why?

Brian: The gig economy is not disappearing anytime soon. In fact, we expect to see an increase in gig workers this year. The low commitment, flexibility in hours, and the variety in tasks are attractive benefits of the gig economy. 

After the mass layoffs and furloughs in 2020, many individuals have lost their trust in traditional corporations and would rather opt to work independently, on their own terms. For others, the gig economy is a great opportunity to make extra cash flow on top of their current salary. It’s an outlet with unlimited possibilities for recent graduates who are unsure of what they want to pursue. For employees who have to tend to their parents or have kids at home, gig economy enables them to work nontraditional hours while attending to their family. As more individuals transitioned into the gig economy rather than a traditional workforce, expect to see businesses slowly hiring gig workers.

Q: What were your challenges with Gig economy? How did you address them?

Brian: One of the greatest advantages of the gig economy is how nimble it is. When we engage a freelancer, we want them to be able to start contributing on day one. Getting our gig workers up to speed quickly was a challenge in our early days. We created playbooks and recorded training sessions to help get our freelancers up and running quickly and with minimal effort. We also encouraged our managers to lean into the 80/20 approach. Invest the time early on with your freelancers and they will save you time and effort in the long run.  

Q: What are the factors that should be included while implementing a successful gig strategy?

Brian:
Have your foot in the right doors to attract the right candidates.
Do your research and find out what platforms gig workers are aggregated on. If companies want to recruit the best talent, they need to make sure that they’re sourcing candidates from the right pool. Get your company name on the sites.

Offer a tailored benefits package to Gig workers. 
Gig workers don’t receive company protection and traditional benefits packages. Offer them benefits like an on-demand pay solution. Inconsistent income is a main concern for the gig economy. With no set work hours and income coming in weekly, it may be difficult to meet payment deadlines. But with an on-demand pay solution, gig workers can easily pay their bills and learn to develop healthy financial habits.

Include Gig Economy in Onboarding Training Sessions.
All employees, including on-demand workers, should have an onboarding session to learn about the company’s mission and values. This enables gig workers to produce the best results, and help save time on both sides. Since gig employees who received training will have a deeper understanding of the company, they will have a competitive advantage when job seeking and employers will already have trained gig employees to help handle internal projects.

Q: Gig Economy has sometimes been heralded as the "End of Employees". What is your take on it?

Brian: Outsourcing has become more prevalent in today’s work landscape and can be beneficial, especially if a company is in need of a specific skill set. While remote working has contributed to the growth of the gig economy, companies will always need to have their own employees. The dedication and loyalty of a company’s employees is a contributing factor to a company’s growth and culture. It’s the company’s employees that create the ideas, execute the plans, and add life to a company. The gig economy and traditional employees serve different purposes and are both necessary for a company’s development. At DailyPay, it’s not uncommon for us to convert gig workers into full-time employees over time. 

Q: The Gig Economy has been around for quite some time but became more relevant in the past year or so? What is driving this change and how much more does this industry have to further adapt to the needs of businesses?

Brian: The pandemic takes the biggest credit. People went from working in offices to their homes. Employees lost their jobs and couldn’t find work. Employers didn’t have enough capital to hire new workers. The world shut down and people had to look for new job opportunities on their own and many turned to gig work. According to a recent survey from daVinci Payments, the gig economy and participation grew by 33% in 2020, despite the pandemic destroying the economy. Covid-19 further bolstered the economy and with a new generation of workers entering the workforce, we can expect to see a shift in work habits and structures. The Workforce Institute at Kronos and Future Workplace found that 46% of Gen Z currently participate in the gig economy in some way in 2019. The active participation from the youngest generation of workers is also telling of the future direction of the gig economy.

Q: What are the biggest trends that you see coming into the gig economy?

Brian: Expect to see more skilled workers in the gig economy. Full-time employees are taking on gig work as a side hustle and many talented individuals have joined the gig economy after Covid-19. With the increase in gig workers, we can expect more businesses to accept gig workers and offer benefits to them as well. We have embraced this at DailyPay with huge success. 

The technological acceleration from Covid-19 will also shift the future of the gig economy. Anticipate efficient financial transactions, hiring systems, and a better gig economy platform for employees and employers to connect on. 

Q: Are existing HR teams effectively anticipating the changes demanded by the gig economy? What do they need to be prepared for?

Brian: Industries that have heavily relied on gig workers prior to the pandemic, like delivery and restaurant services, are more aware of the potential demands by the gig economy. One area of change that these industries have been focused on is the evolution of pay in the gig economy. There has been increasing demand on employers to offer pay benefits, like on-demand pay, to gig workers. A Mercator Advisory Group research indicates that the growth of gig economy employment, where workers are paid at the conclusion of an activity, is pressuring employers to provide more frequent access to earned income. Payments Source shares that 84% of gig workers reported they would do more gig work if they were paid faster. As the industry continues to grow and the demand for an on-demand pay benefit increases, businesses should offer an on-demand pay solution.

Q: How should CHROs be prepared to address the challenges of the gig economy?

Brian: As the gig economy becomes more prevalent, CHROs should think deeply about their benefits strategy for their temporary workforce. They should find ways to attract, engage and retain their gig workers almost the same way that they do for their full time employees. Survey your gig population and learn what matters most to them. Get creative and find ways to meet your employees where they are coming from. The growth of the gig economy is just one example of the incredible resiliency that the workforce has shown. CHROs should find ways to harness that resiliency and drive. We think that reward is a great way for them to do just that. 
 

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