How to Beat the Gig Economy for the Best Hires

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Gig workers are freelancers who work on demand, get paid by the job or sale, and take short-term jobs. Studies show that there are between 54 and 68 million gig workers in the United States, making up about a quarter of the workforce. About half of these workers use independent work as their primary income source.

Gig workers are freelancers who work on demand, get paid by the job or sale, and take short-term jobs. Studies show that there are between 54 and 68 million gig workers in the United States, making up about a quarter of the workforce. About half of these workers use independent work as their primary income source.

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Companies like Lyft, Uber, Upwork, and 99designs have put the spotlight on gig workers lately by providing online platforms that make it easy for them to connect with work. Eight percent of Americans have freelanced through an online platform in 2015—a fairly large number, considering how new these platforms are.

Companies like Lyft, Uber, Upwork, and 99designs have put the spotlight on gig workers lately by providing online platforms that make it easy for them to connect with work. Eight percent of Americans have freelanced through an online platform in 2015—a fairly large number, considering how new these platforms are.

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At least one study expects freelancers to become 40 percent of the workforce by 2020. And it’s not just low-skilled workers picking up extra cash. Some of the best and brightest are choosing to join the gig economy.

At least one study expects freelancers to become 40 percent of the workforce by 2020. And it’s not just low-skilled workers picking up extra cash. Some of the best and brightest are choosing to join the gig economy.

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So, rather than take a full-time job, talented people may choose to take a gig in exchange for the ability to start and stop work whenever they want. Most gig jobs also allow people to work remotely, at a time when many companies are shying away from this concept.

So, rather than take a full-time job, talented people may choose to take a gig in exchange for the ability to start and stop work whenever they want. Most gig jobs also allow people to work remotely, at a time when many companies are shying away from this concept.

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So, how can you stay ahead of this trend and compete with the gig economy?

So, how can you stay ahead of this trend and compete with the gig economy? 

Compete Where Contractors Can’t 

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Companies are limited as to what they can offer a contractor. They have to be careful not to cross the line that turns contractors into employees, or they’ll end up owing payroll taxes and can potentially be sued by employees .

Companies are limited as to what they can offer a contractor. They have to be careful not to cross the line that turns contractors into employees, or they’ll end up owing payroll taxes and can potentially be sued by employees.

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Here’s what a contract worker cannot typically be offered (these are guidelines, so get legal counsel if you’re hiring a contract employee):

Here’s what a contract worker cannot typically be offered (these are guidelines, so get legal counsel if you’re hiring a contract employee):

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  A regular schedule. While companies can be as flexible with contractors as they like, a regular schedule is considered a no-no, especially if the contractor is obligated to work to keep the job.

  A regular schedule. While companies can be as flexible with contractors as they like, a regular schedule is considered a no-no, especially if the contractor is obligated to work to keep the job. 

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  Equipment. Generally, contractors need to supply their own equipment. That’s why Uber drivers use their own cars.

  Equipment. Generally, contractors need to supply their own equipment. That’s why Uber drivers use their own cars.  

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  A long-term position. The longer a contractor is with a company, the less likely she is to be considered a contractor.

  A long-term position. The longer a contractor is with a company, the less likely she is to be considered a contractor. 

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  A place to work. Giving contractors a workspace is generally associated with employee status.

  A place to work. Giving contractors a workspace is generally associated with employee status. 

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  Paid vacation. While gigs can be flexible, contractors can’t be paid for hours they don’t work.

  Paid vacation. While gigs can be flexible, contractors can’t be paid for hours they don’t work. 

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  Benefits. Contract employees cannot typically be offered health, dental, or other work benefits.

  Benefits. Contract employees cannot typically be offered health, dental, or other work benefits.

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As an employer, you’ve got the advantage of being able to offer a regular schedule, equipment, long-term work, benefits, and a workspace. If you were to post a job on a job board , you might speak directly to these potential employees by saying something like, “Looking for a regular schedule and a long-term job?” or “Ready for a paycheck you can count on, healthcare, and an office?”

As an employer, you’ve got the advantage of being able to offer a regular schedule, equipment, long-term work, benefits, and a workspace. If you were to post a job on a job board, you might speak directly to these potential employees by saying something like, “Looking for a regular schedule and a long-term job?” or “Ready for a paycheck you can count on, healthcare, and an office?”

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A survey by the Pew Research Center shows that many workers think that online gigs do not lead to careers, and place too much financial burden on people doing the work. So focusing on career opportunity in your employer branding, and noting the equipment you offer employees in job postings could definitely give you an advantage.

A survey by the Pew Research Center shows that many workers think that online gigs do not lead to careers, and place too much financial burden on people doing the work. So focusing on career opportunity in your employer branding, and noting the equipment you offer employees in job postings could definitely give you an advantage.

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Another thing gigs don’t offer is a sense of camaraderie. Generally, gig employees come and go, so they don’t get the chance to form tight bonds with co-workers. Use your company culture to attract gig employees to the idea of being part of a team.

Another thing gigs don’t offer is a sense of camaraderie. Generally, gig employees come and go, so they don’t get the chance to form tight bonds with co-workers. Use your company culture to attract gig employees to the idea of being part of a team. 

Beat Them at Their Own Game

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While there is a long list of things that cannot be offered to gig employees, there’s nothing that says you can’t move in on the turf of contract employers, and offer some of the perks they have. The key is being more flexible. Can you offer more vacation time, even if it’s unpaid? Can you let them choose their own hours? Give them opportunities to work remotely? Let them work part time?

While there is a long list of things that cannot be offered to gig employees, there’s nothing that says you can’t move in on the turf of contract employers, and offer some of the perks they have. The key is being more flexible. Can you offer more vacation time, even if it’s unpaid? Can you let them choose their own hours? Give them opportunities to work remotely? Let them work part time?

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Some jobs cannot offer flexibility, but try to really examine what you do and see how flexible you can be. Combining some level of flexibility with the perks of employment might be enough to win over great gig workers.

Some jobs cannot offer flexibility, but try to really examine what you do and see how flexible you can be. Combining some level of flexibility with the perks of employment might be enough to win over great gig workers. 

And If You Can’t Beat Them…

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Have a look at Upwork, if you haven’t already. There’s a contractor for just about any job that can be done with a computer. If you’re having trouble filling a position, you might consider filling it with a gig employee.

Have a look at Upwork, if you haven’t already. There’s a contractor for just about any job that can be done with a computer. If you’re having trouble filling a position, you might consider filling it with a gig employee.

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Here’s the beauty of it: You get to try this person out. Give him a small task, and if that goes well try something a little bigger. You can also see how having a remote employee works out for your company. If things go well, and this person seems like he’d make a good part of the team, you can offer him regular work, with benefits, a regular schedule, and the other perks only employment offers, and see if he’ll bite. If things don’t work out, you’re free to hire another gig worker, or look for a traditional employee.

Here’s the beauty of it: You get to try this person out. Give him a small task, and if that goes well try something a little bigger. You can also see how having a remote employee works out for your company. If things go well, and this person seems like he’d make a good part of the team, you can offer him regular work, with benefits, a regular schedule, and the other perks only employment offers, and see if he’ll bite. If things don’t work out, you’re free to hire another gig worker, or look for a traditional employee.

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Ready to take on the gig economy? There are plenty of ways you can entice great employees over to regular employment, if you sell it right, and find new ways to stay competitive with hiring in this tight job market.

Ready to take on the gig economy? There are plenty of ways you can entice great employees over to regular employment, if you sell it right, and find new ways to stay competitive with hiring in this tight job market.