Important Gig Economy Implications For Small Business Owners

In the so-called gig economy, young professionals are working three and four gigs to earn a livable wage. There are, of course, many implications to this type of professional living. However, not much has been said as to the ways in which this gig economy affects business owners. Find out the impacts of the gig economy on business since the small business revolution in the post below.

HR Impact

The gig economy has huge effects on the Human Resources industry. In fact, HR may be one of the most impacted areas of business in this new economy. HR will need to change its employee performance metrics in order to keep up. This will lead to a need for new employee monitoring software options. In addition, HR departments will also need to adapt hiring practices in order to quickly respond to projects in need of specific skills. This is something you should start preparing for as a business owner if you have not already.

Less Control

The gig economy also means less control for business owners, managers and supervisors. You should start to realize now that you will be forced to give up control in this type of work environment. Micromanagement is not possible. You will need to become comfortable with a lack of control regarding how contractors do their work and when they get it done. This will definitely require some adjustments to made to employee management practices. That is why it is so important for business owners to make themselves aware of.

Improved Agility

Businesses can definitely move and work quicker now thanks to the gig economy. In the gig economy, you do not have to structure jobs around broadly defined roles. This allows you the freedom to develop new business growth strategies. Then, it also gives you the freedom and agility to reach those business growth objectives. The increased agility made possible by the gig economy is a huge advantage for business owners looking to grow.

Legal Implications

The growing gig economy also has legal implications for business owners. This type of work economy makes it harder for employees to secure health insurance, retirement savings plans and more. That means less responsibility for employers, like you. However, it is also in your best interests to work together alongside gig economy workers and independent contractors to push for legislation to regulate this new gig workforce. This way, you can create a sustainable professional dynamic between employers and workers, enabling everyone to reap benefits from the global economy.

Employees Want To Work

When employees work gig jobs, they do so because they are choosing to do so. That means that they want to work. This is a huge advantage for business owners looking for good employees. You will not have to worry as much about the quality level of work getting done. There is too much competition within the gig economy for employees to not care about the quality of their work. This means the absolute best results possible for your projects and objectives, which is obviously a considerable benefit for any and every business owner.

If you own a business, you are probably concerned about what the emerging gig economy means for your business in the long-term. Consider these gig economy facts listed above. Having knowledge of these business implications will help you to prepare for the gig economy so that you can capitalize on the growth opportunities it affords your business. You may even wish to attend business seminars to learn more about this new type of economy. Keep these points in mind while you figure out how to navigate the gig economy as a business owner.

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