Top 5 things we learned at the Gig Economy Conference

1) The Gig Economy is growing!

The Gig Economy has been steadily growing over the last decade and that growth is expected to continue with over 80% of the market reporting an interest in self-sourcing over the next two years.

At the conference, most estimated that approximately 20% to 25% of the workforce will be comprised of contingent workers in the next 10 years. With some of the more radical thinkers landing on a number significantly higher.

The consensus was clear by any measure, the contingent workforce is growing at an accelerated pace.

Every business needed a mobile strategy 10 years ago, now they need a contingent labor strategy.

2) Digital Transformation: Everyone wants flexibility and transparency

Banks used to be able to survive with just a brick and mortar strategy, but more and more customers demanded the ability to view their accounts and do their banking online. A similar movement is happening in the staffing world. Clients want easier ways to book, as do talent. In fact, almost a third of all contingent workers stated flexibility as the primary reason for entering the gig economy.

Within just the last few years, the world has become more connected than ever. In fact, 2018 marked the first year that over half of the world’s population had access to the internet, a monumental achievement. But with increased connectivity, comes increased demand for faster and more efficient processes.

In the staffing world, that means booking on-demand. Clients want to see who they are booking and be able to get a trustworthy staff member on-site quickly.

3) Service and Quality Still Rule

The idea that the gig economy will create a race to the bottom just isn’t the reality of the situation. Clients need talent they can rely on to get the job done. This means highly-vetted professionals are still in high demand across all industries and the best talent expects to be well treated and paid in accordance with their worth.

You get quality talent if you respect them and treat them as such. This begins from responsible employment practices that extend into a robust support system/talent community where they can feel a sense of connection to their community.

4) There Will Be No “Uber” of the Staffing World

While many companies are going to vie for the title of “Uber of the Staffing World”, experts believe the industry is far too diverse for a single company to elevate to the point of dominance. Companies like Upwork and Fiverr have exploded in popularity over the last few years, but they still make up a fraction of the entire industry.  Independent contractors are still the largest chunk of the market, accounting for over 800 billion, or about 62%, of the 1.3 trillion dollar industry.

5) Talent is Your New Customer

The most important takeaway is something we at Jitjatjo have known from day 1 – the talent is the heart and soul of a winning business.

For decades, the staffing industry has treated its employees like numbers that get called upon when a client needs to fill an open shift. But the new wave of staffing companies, including us, have taken a new approach towards our talent by simply showing them the respect they deserve.

We know that our talent has other options, so it is critical for us to create an environment that provides as much value for them as they provide for us–that after all, is our mission–human betterment. We aim to create a culture and an atmosphere that enables our talent to grow and reach their full potential in the hospitality industry.

Bonus! AB5 Dominates the Day

(Source: Eric Risberg, File/AP)

Being a San Diego event, it was obviously big news when the story broke that California had passed a bill, AB5, that will enforce stricter laws regarding the 1099 vs W2 designation for contingent workers. Being a W2 employer, this ruling won’t impact Jitjatjo – instead targeting giants in the gig economy like Uber and Lyft.

While Uber vows that they will continue to fight this designation, AB5 serves as a warning to the gig economy as a whole. This bill further emphasizes our last point, companies that treat their talent with respect, and put the employees best interest ahead of their own, will end up on top.