2020 is set to be a momentous year. We , at Pexitics (People Excellence Indicator Analytics) bring to you the important trends in the way People Management will evolve in the near future.
The Surge of the Gig Economy: As you are aware the term “gig economy” was popularized around the height of the 2008-2009 financial crisis – mostly to refer to task based labour. With chunks of the population facing unemployment or underemployment, many workers picked up temporary jobs which were flexible. Some workers were able to hold down a full-time or part-time job but needed to shore up their income. Others cobbled together an income by working a few gigs at once. Being able to choose working hours was paramount. Many of them took up with Uber and other such services.
A decade later we are seeing more gig workers than ever. According to the CEO of Intuit, Brad Smith: “The gig economy [in the U.S.]…is now estimated to be about 34% of the workforce and expected to be 43% by the year 2020.” For a more concrete picture, Harvard Business Review reported that 150 million workers in North American and Western Europe are engaged as independent contractors.
In India, we have seen the jobs created by Swiggy , Zomato, Dunzo , Uber etc.
Gigs run the entire spectrum of pay scales, from senior executive types who travel to major cities to ply their trade to the workers who make a little extra income by picking up ride-hailing fares in his or her community.
The two major segments are
- knowledge-based gigs (such as independent management consultants or machine learning data scientists)
- service-based ones (such as tradespeople and delivery drivers).
What is fueling the Gig economy ? It is technology – which helps manage the Quality, Time and Money elements of the jobs . Thus , delivering on multiple fronts has become possible for the same person . This increased usage of technology helps people manage the VUCA world effectively too .
VUCA is an acronym used by the American Military. It stands for Volatile, Uncertain, Complex and Ambiguous. It was the response of the US Army War College to the collapse of the USSR in the early 1990s. Suddenly, there was no longer the only enemy, resulting in new ways of seeing and reacting.
Neither an organisation’s leadership nor its strategies are spared in today’s VUCA world. An organization has to learn to be “agile and nimble” to survive in the VUCA world but has to have “scale and size” to make in impact in the economy / business world.
Thus, instead of growing one department into a very large SBU (Strategic Business Unit) it makes sense to have Intrapreneurs. An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur. However, the intrapreneur has access to the resources and capabilities of an established company. He is the company’s very own Entrepreneur, using the resourcefulness associated with entrepreneurship to navigate “fast and smart “in the VUCA world .
While both entrepreneurs and entrepreneurs share entrepreneurial DNA and have a very deep passion for innovation, they are very different in the sense that they require different set of skill sets to be successful in their respective environments as depicted in the following diagram.
The culture of a company may not be able to modify itself to accept the disruptions proposed by Intrapreneurs. This can happen at the Leadership stage or with the co-workers who are not in Intrapreneur led units – who resent the divergence from the main company culture. This can cause internal conflict and strive – a lot of which can be expected in 2020 and beyond – because this concept of Intrapreneurship will only grow .
The most obvious impact of the Surge of the Gig Economy will be the clear accountability of Performance in a job role . The Employees / consultants / freelancers will have lower loyalty to the company and higher loyalty to the job they can perform and the company will also want to hire predominantly for tasks and goals – which are measurable.
This will lead to a greater adoption of an objective, framework driven, number driven working style in People Management as well as a greater transparency in hiring and firing decisions – all driven by Technology. We can expect more emphasis on Talent Assessments and Quantification of qualitative feedback with Machine Learning and AI algorithms allowing for real time decisions in People Management. Employees – whether full time or part time- will urge organisations to help them perform better while also aim to remain happier in a world where family support systems are dwindling.
This Surge of the Gig Economy is a natural outcome of having more Millennials in the workforce. As per a study, nearly 50% of the workforce will be a Millennial by 2020.
What Millennials Value in the Workplace: Gallup indicates millennials want benefits much like other generations do: things closely related to quality of life such as good health insurance, paid vacation, and retirement plans. Where millennials differ from their predecessors is in just how much they value these things, as this generation is often willing to change jobs just for a specific benefit.
What does all this mean for employers? They need to create a culture that addresses what millennials seek in a job. So, it would benefit us to get some insight into the way millennials think about work and the expectations they have.
- They want their work to have purpose. They are passionate about making a difference through their work. Volunteering is also a top priority for this group.
- They want to learn and develop. They expect their roles to be continually challenging and ever changing.
“Millennials want to learn and take in information at a quick pace. Our goal is to challenge them,”
– Carla Enzinger, Batesville Tool & Die
- They want stability. The survey found that the more stable they view an organization, the more likely they may be to see a future with that company. Poised for growth? Great! Emplify’s Q3 Employee Engagement Trends and Indexes report showed a high positive correlation with higher growth orgs and employee engagement. They want to be a part of something, remember?
- They want ongoing feedback. They want to talk to their managers, often. They want collaborative goal-setting, gone are the old days of high power distance. . Only about 1 in 5 employees strongly agree that their performance is being managed in a way that motivates them to do outstanding work (Gallup).
- They want flexibility in when and where they work. They want work-life balance. The 9 to 5 is dead, as millennials search for jobs that fit into their lives. Work doesn’t end when they leave the office, and life doesn’t end when they step foot into it. A Gallup study on benefits and perks found that 51% of employees would switch to a job that allows flexy-time, and 37% would switch for the ability to work off-site part of the time. This is especially hard to accommodate given the nature of manufacturing.
“Manufacturing companies are going to have to figure out how to staff their operations while allowing the same work schedule flexibility offered by IT/Software companies”
– Joe McMurry, Leadership expert at Purdue MEP
- They are connected. They do not USE technology; it is an integral part of their daily lives and the way they interact with the world. Having grown up with technology, they could be a great advantage to employers by realizing new and unique ways of approaching and utilizing technology.
Given that 50% of the people employed will follow the above values in 2020, there is no doubt that the Gig Economy is the only way out to cater to this workforce. It is the only way to string together Technology Comfort (especially Smartphones) + Connectivity (telecommunications) + Flexibility (work life balance) + Work for a purpose + Continuous Feedback on work and its impact + Continuous Learning and Development + Stability. Its all about creating a workspace where they – the millennials- are King … their Work and Life are of paramount importance . They are ready to work really hard on jobs that give their life meaning and for employers who help them learn and become better at their life work. In such a workspace, they live their life with flexibility and in a space of stability – working and delivering while being true to their own happiness.
PexiScore is one such organization which enables Smart HR and People Decisions using unified, 1 data platforms for People Management. With cloud based technology integrated with HR analytics and proven Competency frameworks and Survey Frameworks, we assist organizations to use a uniform yardstick for measurement and actions across employees. The use of such measures help meet KPIs in the space of People management (Create talent benchmarks for Hiring, Learning Path creation, Promotions for better Talent management, increase Revenue per employee, Reduce Absenteeism, create Mental wellness programs, etc.) We do this with a combination of Assessments and Surveys followed by analytics, giving clear insights and roadmaps for organizations and teams. (Please view sample reports at https://pexiscore.com/assessment)
What gives us an advantage is our capability to merge Qualitative feedback with Quantitative scores from the Assessments to give a holistic output which helps organizations make best People decisions for growth and profitability.
Pexiscore (Pexiscore.com) is our product website which enables all our Assessments and Surveys are online with real time results and dashboard support. All assessments are available in English and Hindi, with the option to convert into any other Indian language. The following features are free on the PexiScore system – It is cloud based, mobile friendly, dashboard driven decision system.
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(Note: Customers we work with include Saudi Telecom Company, Crowe Mak, RSWM Ltd. , Parijat Industries, Hitachi Metals, Samasta Microfinance, Saltside, Tardid Tech, GHCL Ltd, Manipal Global, Jain University, Symbiosis University, Redpine Signals, Worxogo, Glass Onion, Equiskill etc.)