GIG ECONOMY IMPACT ON TALENT MANAGEMENT IMRAN KUNALAN PRINCIPAL CONSULTANT DIGITAL TALENT & PEOPLE ANALYTICS
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1 GIG ECONOMY IMPACT ON TALENT MANAGEMENT ` IMRAN KUNALAN PRINCIPAL CONSULTANT DIGITAL TALENT & PEOPLE ANALYTICS
2 CONTENT q Future of Work q Gig economy defined q Impact on Talent Management
3 CONTENT q Future of Work q Gig economy defined q Impact on Talent Management
4 FUTURE OF WORK (FOW)
5 DRIVERS OF CHANGE FOR THE FOW
6 SKILLS FOR THE FOW
7 CONTENT q Future of Work q Gig economy defined q Impact on Talent Management
8
9 WHAT IS GIG ECONOMY? A labor market characterized by the prevalence of shortterm contracts or freelance work as opposed to permanent jobs Work or task transacted through digital platform Gig workers can be in contingent or alternative employment arrangements, or both. Contingent workers are those who don t have an implicit or explicit contract for long-term employment Alternative employment arrangements include independent contractors (also called freelancers or independent consultants ), oncall workers, and workers provided by temporary help agencies or contract firms..proficians are experts in a field and include skilled technicians and professionals. They may be lawyers, sports stars, architects or IT specialists. Their key quality is that they are project-oriented freelance workers
10 GIG ECONOMY IS ALSO KNOWN AS.
11 CHARACTERISTICS OF GIG ECONOMY Online Platform Flexible Time Task Based Compensation Platform Mediated Payment That connects the worker/service provider and the prospective employer/client Worker or service provider has the flexibility of delivery Worker/service provider paid on specific task or project deliverables Payment is directly paid to the service provider mediated through the platform
12 GIG ECONOMY VS SHARING ECONOMY
13 GIG ECONOMY TREND Source: MGI 2016
14 The Malaysian Landscape
15 GIG ECONOMY MALAYSIAN SCENARIO
16 GLOBAL FREELANCERS TREND
17 WHO ARE THE BENEFICIARIES OF THE GIG ECONOMY? Employers/Client/Buyer/Consumer Democratisation of access to a variety of services, talent (global), offering competitive price and higher efficiency and productivity gain Workers/Talent Alternative job seeking means, global roles/tasks, flexibility of work location, generate income at their convenience and promises a dynamic work environment Entrepreneurs Offers flexibility for entrepreneurs not to be bound by permanent and high cost team/staff
18 FEATURES OF THE GIG ECONOMY WORKERS ( PROFICIANS) Source: MGI 2016
19 GIG ECONOMY WORKERS SEGMENTATON PRIMARY INCOME SUPPLEMENTAL INCOME PREFERRED CHOICE FREE AGENTS: Derive their primary income from independent work and actively choose the working style CASUAL EARNERS: Use independent work to supplement their income and to do so by choice. Some have traditional primary jobs, while others are students, retirees or caregivers NECESSARRY CHOICE RELUCTANTS: Derive their primary income from independent works but would prefer traditional jobs FINANCIALLY STRAPPED: Do independent work to supplement their income but would prefer not to have to do side jobs to make ends meet
20 CONTENT q Future of Work q Gig economy defined q Impact on Talent Management
21 IMPLICATION OF GIG ECONOMY ON TALENT MANAGEMENT Flexibility (for both workers and firms), Impact efficient use of time. market thickness,
22 GE BENEFITS ON TALENT MANAGEMENT FOR EMPLOYERS Low reliance on FT Ease of use and access to greater talent pool Opportunity to try out a range of candidates Innovative Fulfill Short-term Business needs Risk mitigation of bad permanent hires Quick Hiring More Cost Efficient
23 GE BENEFITS ON TALENT MANAGEMENT FOR EMPLOYERS q source talent from the global marketplace q source talent more quickly than via traditional recruitment channels q source talent at an affordable rate q bring in talent on a project-by-project or noncommittal basis q avoid the cost of unnecessary long-term or permanent hires q reduce the risk of unsuitable long-term or permanent hires q experiment with a wide range of different service providers.
24 CHALLENGES/RISK OF GIG ECONOMY TO EMPLOYERS UNQUALIFIED CANDIDATES Inconsistent information shared in profile and reality POTENTIAL DISPUTES The legal and regulatory requirements in this area remai hazy EMPLOYER BRANDING Losing workers loyalty to the employer brand CHEAP EMPLOYER Perceived as an employer who is cost conscious and gaining poor reputation
25 MITIGATION EFFORTS IN PLACE Online Rating & Review System An online ratings and review systems are made available to enhance trust and transparency. Comprehensive vetting and communication Facilitating comprehensice assessments, vetting and indepth communication Creative Hiring Approaches Offering different type of hiring experinces including competitions and contests which allow employers to try out or see candidate s portfolio or work first. Payment Guarantee Offer Offering payment guarantees, either by holding the payment until the work is complete or releasing it in agreed instalments for larger projects
26 BENEFIT FOR GIG WORKERS Global Talent Self Managed Compensation Interactive CV Flexibility of time and location Career variations
27 BENEFIT FOR GIG WORKERS q q q q q market themselves globally and work for different clients around the world develop an interactive CV, with reviews, ratings and even examples of previous work experiment with different careers, both alongside or instead of traditional employment work flexibly at a time or in a place that suits them set their own price and terms depending on availability or demand.
28 AVERAGE INCOME BY GIG WORKERS
29 CHALLENGES/RISKS FOR GIG WORKERS Being excluded from having the same protections and entitlements as those in traditional employment, including pensions, statutory sick pay and holiday entitlement Not being assured continuity of work (a particular concern for workers using the gig economy as their primary source of income) Being forced to lower their rates due to increased global competition Losing control over their digital résumés, as online ratings systems give prominence to clients reviews Not getting the type of fixed flexibility that part-time contracts offer.
30 ARE OUR EMPLOYMENT REGULATORY COMPONENT READY? q q UPDATED LABOR LAWS They have to be revised in order to better fit this new world of contingent workers, guaranteeing fair practices for all parties. REGULATION OF THE SERVICES In most of the industries, the services have to be regulated in order to guarantee a fair level of competitiveness. Governments have the challenge to do that without discouraging innovation. q BETTER TRANSPARENCY RULES Companies have to be more transparent and ethical with consumers and workers.
31 THE GIG ECONOMY IS PART OF HOW THE WORLD OF WORK IS SHIFTING. IT S ECONOMICALLY INEVITABLE THAT IT WILL BE PART AND PARCEL OF HOW THE FUTURE ECONOMY FUNCTIONS.
32 Thank You and Get in Touch! +(6018)
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