The gig economy has been growing rapidly in recent years.
The gig economy refers to a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent “9 to 5” jobs. Gig work can include a wide range of activities, such as driving for rideshare or taxi services, helping with chores through task-based platforms, or providing professional services on a freelance basis such as digital marketing or writing.
There are several factors that have contributed to the growth of the gig economy, including advances in technology that have made it easier for people to find and perform gig work, changes in consumer demand for on-demand services, and shifts in the labour market towards more flexible and independent forms of work. Recessions may also lead workers and employers to turn to gig according to December 2022 forecasting by PYMNTS.
Why Hire A Freelancer
The gig economy means employers can outsource to independent freelancers for specific jobs on a per-project basis. One of the main advantages is that they’re not responsible for the freelancer’s income in the same way they would be with an employee.
If you hire freelancers or gig workers you don’t have to worry about the same overhead costs such as medical benefits, retirement plans, and/or severance. While there are other reasons to consider using gig work, this can be a great way to maximize your budget while still benefiting from qualified professionals.
While the gig economy offers benefits, it’s important for employers to understand and mitigate potential risks with background screening.
Risk Mitigation Strategies
Despite the benefits of the gig economy, there are potential dangers associated with hiring gig workers or freelancers that could damage any organization. Working with a trusted company like Certn who offers affordable background screening, regardless of your company size, can help you benefit from the gig economy while doing due diligence.
In this blog post, we’ll review how you can benefit from the gig economy while mitigating potential risks.
Some of the potential risks associated with hiring gig workers include:
- Lack of control: Because gig workers aren’t full-time employees, your organization may have less control over their work and/or how it’s performed. This can make it more difficult to ensure that work is being done to the desired standards and in compliance with company policies.
- Liability: In some cases, gig workers may not be covered by the same liability insurance as your other employees, which could expose the organization to potential risks if something goes wrong on the job. A hiring platform like our partners at Deel can help you expand your talent pool while managing risk.
- Reputational risk: If a gig worker doesn’t perform their work to the desired standards, it could negatively impact your organization’s reputation and customer satisfaction. Therefore, it’s important to be thoughtful about the scope of their job duties and/or clear about expectations.
- Legal issues: There may be legal issues to consider when hiring gig workers, such as tax obligations and compliance with labor laws. As we’ve discussed, it’s important for organizations to understand their legal responsibilities when hiring gig workers and to ensure that they’re in compliance with all relevant laws and regulations, especially with international hiring.
Overall, it’s important for organizations to carefully consider the potential risks and benefits of hiring gig workers, and to have clear policies and procedures in place to manage these risks. This can help to ensure that gig work is conducted in a way that is fair, legal, and consistent with the organization’s goals and values.
Types of Background Checks
When hiring gig workers from global talent pools, it’s important to conduct thorough background checks to ensure that the workers you hire are qualified, reliable, and trustworthy. Some types of background checks that may be useful when hiring gig workers from global talent pools include:
- Criminal history check: Conducting a criminal record check is an important part of the background screening process for gig workers, as it can help your organization to identify any criminal convictions or charges that could impact the worker’s ability to perform the job. For example, if the gig work involves handling sensitive or confidential information, a criminal record check may be necessary to ensure that the worker does not have a history of fraud or identity theft. It’s important to note that criminal record checks should be conducted in a way that is fair and respectful to the worker, and in compliance with all relevant laws and regulations. Certn can help you run compliant criminal record checks.
- Licence and credential verification: If the gig work requires specific licences or certifications, you may want to verify that the worker has the necessary qualifications.
- Education and employment verification: Fraud is more common than you might think. You may want to verify the worker’s educational and employment history to ensure that they have the necessary qualifications and experience for the gig work.
- Personal reference check: Contacting people who know the worker personally, such as friends, family members, or previous colleagues, can help you get a sense of the worker’s character and work ethic.
If you need help figuring out how to screen gig workers, book a demo with one of our industry experts today!
Grow Your Business Safely
It’s true that the gig economy has made it easier for organizations to access high-quality talent on a flexible, as-needed basis. The proliferation of online platforms and other technologies has made it easier for organizations to find and hire gig workers with specific skills and expertise, often with little lead time. This can be especially useful for organizations that need to bring in talent for short-term projects or to fill temporary gaps in their workforce.
However, it’s important to note that finding and hiring high-quality gig workers is not always easy. It can take time and effort to identify and evaluate potential gig workers, and to establish and maintain relationships with them. Additionally, there may be competition for top talent, particularly in certain industries or markets. (This is where using the fastest background screening is helpful.)
To maximize the benefits of hiring gig workers, make sure they’re vetted thoroughly with the proper background screening. Book a demo today to figure out how to screen gig workers effectively and efficiently.