4 reasons why workforce is embracing the gig economy and why your business should too

Some people call it the “Sharing Economy”, others call it the “Gig Economy” but whatever you want to call it, this new tech-based labour force is really starting to make an impact in Canada and it’s making an impact in the way the Canadians work.

Companies that you would associate with the gig economy are Uber, Airbnb, Lyft, Foodora, and dozens if not thousands of other companies that are entering this space.

In this post, we will understand why these companies are embracing this shift and why your company should too.

First, let’s face the facts!

Before we begin, please take advantage of all the research reports I have hyperlinked in this post if you are interested in learning much more in-depth about this topic.

Gig economy is not going anywhere, it’s not a temporary hype or change in our society. It’s a permanent change. It is the change in the mindset of people due to recent economic volatility and technological innovation.

According to a study done by BMO Wealth Management, “The gig economy in Canada is growing at a phenomenal rate that shows no signs of slowing down,”. The study reads, “An on-demand, freelance or contingent workforce is becoming the norm.

The workforce is adopting these changes as it is providing them with more flexibility and benefits as compared to the traditional employment.

These are the top four reasons workers have embraced the gig economy are as follows:

  1. Autonomy and control (49%)

2. making extra money on the side (49%)

3. balancing career and family needs (42%)

4. the only way to make an income (27%).

So, what does this all mean to you as a business leader?

Embrace the change or play catch-up.

Firstly, we need to accept the reality that we are all sharing the same pool of workers. There is no magic sauce behind your roster of candidates, it’s being shared by other companies and staffing firms as well. Job seekers go wherever they can find a job that is best suited for them.

We have to as business adopt and embrace these changes if we want to continue attracting the talent that keeps our operations going. A lot of staffing firms and companies are starting to feel the pressure on how to attract the limited labour pool. For business leaders who don’t think they aren’t feeling any pressure today, it’s just a matter of time.

Here are some more facts to show you what the workers are expecting from you the in coming years.

Sixty-two percent of workers believe that employers should be more open to flexible work arrangements. Astonishing 85 percent of employers expect their organization to become committed to building an agile workforce in the next few years.

Lastly, I would like to end this post with the quote by HP President.

Leaders who open their business up to the idea of accepting on-demand workers will have the first pick at the new wave of millennial and Gen Z talent who will deliver untapped insights and add depth to new business ideas.

So, how can we open our business to attract this talent? Well, let’s keep that topic for the other blog post.