The way we work is undergoing a seismic shift. A 2021 Pew Research study found that 16% of U.S. adults have already earned money through an online gig platform, with that number jumping to 30% for those aged 18-29. The appeal of flexible work arrangements and alternative employment options continues. A recent statistic notes the projected increase of freelancers will reach 76.4 million in 2024, an increase of 3.1 million from 2023. The rise of the gig economy presents a massive opportunity for staffing firms to adapt and cater to this growing segment.
Adopt the Shift: The Numbers Don’t Lie
According to a September 2023 World Bank report, the “gig economy” now accounts for up to 12 percent of the global labor market, a significantly higher number than previously estimated. The report further highlights the particular promise the gig economy holds for women and youth in developing countries, where demand for online gig work is growing at a much faster rate than in developed nations. “Demand for online gig work is rapidly rising, however, social protections for workers in this segment are still lacking,” says William Maloney, Senior Labor Economist at the World Bank, highlighting an area staffing firms can address. Challenges and opportunities in a growing market should be explored by staffing agencies.
Become a Gig Economy Hub: Building a Thriving Ecosystem
Staffing firms can capitalize on this trend by developing user-friendly platforms that connect businesses with qualified gig workers. “The key is to create a seamless experience for both sides of the equation,” says Alex Rosen, CEO of MBO Partners, a company specializing in gig economy staffing solutions. “Businesses need a reliable pool of talent, while gig workers require efficient project management tools, secure payment processing, and compliance support.”
Aerotek, a staffing agency shares “The buzz around the gig economy is loud — and it’s only getting louder. It’s waking people up to the possibilities of taking control of their own careers — and that’s a good thing. But many workers are finding that contract work can offer similar variety, flexibility, and ownership — while retaining the benefits of being an employee.
Sure, apps are cool and convenient, and you don’t have to talk to them (unless you want to). But sometimes your situation is more complex, requiring more insight than an algorithm can offer.”
Go Niche: Specialization is Key
Focusing on specific in-demand skills for the gig economy can give your firm a competitive edge. A recent study by Upwork identified digital marketing specialists, data analysts, and graphic designers as some of the most sought-after freelance talent. “By specializing in these high-demand areas, staffing firms can attract top talent and become a trusted resource for businesses seeking project-based expertise,” says Sarah Jackson, Lead Analyst at Upwork.
Build a Strong Employer Brand: Attract Top Gig Talent
Gig workers value flexibility and opportunity. Promote your firm as a trusted source of high-quality gigs with competitive rates and a streamlined onboarding process. “We focus on building strong relationships with gig workers and ensuring they have access to a steady stream of projects that match their skills and interests,” says Lisa Hernandez, Head of Talent Acquisition at FlexStaff, a staffing firm specializing in gig workers.
Focus on Skills, Not Only Resumes: Evaluating Talent for the Gig Economy
Traditional resumes might not capture the essence of a successful gig worker. Invest in building robust skills assessments and project-based portfolios to evaluate talent effectively. “Skills-based assessments allow us to go beyond resumes and identify candidates with demonstrable skills and experience to deliver successful project outcomes,” says David Jones, Head of Talent Evaluation at GigX, a staffing firm specializing in gig workers.
Become a Skills Matchmaker: Data-Driven Success
Utilize data analytics to pair the perfect skills with the right project needs. This ensures successful project outcomes and satisfied clients who keep coming back for more. “By leveraging data analytics, we can create a win-win situation for both businesses and gig workers, ultimately strengthening our position in the ever-evolving staffing landscape,” says Maria Garcia, CEO of TalentForce, a staffing firm specializing in gig workers.
By adapting to the gig economy, your staffing firm can become a vital player in the changing landscape of work. Embrace the shift, cater to the evolving needs of workers and businesses, and watch your business thrive in the flexible future.
COATS Staffing Software offers our staffing agencies the ability to pay their employees in many ways. Weekly, bi-weekly payroll as well as day pay and permanent hire structures are a few methods offered with our software. Offer gig workers seamless pay and benefits to captivate these workers rather than their “1099 pay your own taxes” method that they can tire of quickly.