12% of the Workforce Is Gig Workers: Challenges of Managing Flexible Talent

For most managers, managing talent has essentially meant supervising full-time teams (some remote, some in-office) during fixed work hours. However, more Indian employers rely on external labor today than ever before. Flexible workforces (contract, freelance, and gig workers) now complement traditional full-time employee teams at many large companies. More businesses might follow suit in the coming years. According to a NITI Aayog report, the number of gig workers in the country is expected to reach 23.5 million by 2029-30, almost tripling from 2020-2021.

Gig workers are a valuable source of critical skills and expertise, but present challenges in talent integration. They have fewer constraints on how, when, and where work is done. Their tenure at companies is temporary, and most are geographically dispersed. How can managers adapt their management strategies to meet the needs of a diverse and shifting pool of contractual talent? 

This blog examines the challenges of integrating flexible talent in the freelance economy and outlines the necessary steps to address them. 

Common Challenges of Managing Gig Workers

The growing dependence on gig workers necessitates a recalibration of management strategies. This can be complex given their engagement levels, and managers may face a few common challenges, including:

    1. Lower engagement levels

There’s no denying the value gig workers bring to the table. They offer access to specialized skills and expertise that may otherwise be challenging to source through regular recruitment channels. However, freelance talent is not integrated into the organization’s permanent staff. This raises concerns around their level of engagement and buy-in to organizational priorities. Understandably, they may be less motivated to achieve organization-wide goals. Further, since they view their roles as temporary, they may exhibit self-interest behavior (e.g., prioritizing speed over team needs). 

There are a few steps HR can take to minimize this risk:

• Use formal, structured processes for freelance talent integration. It may seem counterintuitive to apply the same onboarding processes to gig workers as companies do to full-time employees. After all, they're joining the company temporarily. However, short as their tenure may be, gig workers will likely attend meetings and interact with existing teams. They need to have proper guidelines on how to communicate and collaborate. They should undergo training and receive thorough information about their roles, company policies, and expectations. 

• If you might collaborate with gig workers again in the future, it may be useful to develop a reboarding process specifically for flexible talent. This might help them quickly catch up on key developments as they reintegrate into the organization.

• Managers need to set realistic expectations and actively cultivate trust and belonging through frequent conversations. Gig workers should feel included, rather than temporary contributors who need to perform their tasks in isolation.

• Another way to engage gig workers may be to explore the option of permanently integrating them into the organization. Of course, this is contingent upon mutual agreement and interest from both sides.

    2. Collaboration issues

Gig workers may be reluctant to adhere to company norms or policies. Communication may be a challenge. Additionally, time zone differences or the absence of in-person interaction can also hinder communication. Although it may not seem so, the presence of even one contractual worker, especially if they are uncooperative, can affect team morale and the overall work environment. 

As managers, it can be frustrating and may require making trade-offs. Should you prioritize completing the project or maintaining team morale?

If you rely on the gig worker for a specific expertise, and provided they are exceptional, it makes sense to retain them for the contracted period. At the same time, it's essential to ensure that your team members feel heard. Explaining why the company is investing in the specific gig worker can secure their buy-in. Beyond this, managers may consider discouraging future collaborations or rethinking the management of this critical segment of workers. 

    3. Keeping projects on schedule 

Another familiar challenge managers face is keeping blended teams firm on deadlines. Most managers are used to thinking in terms of annual goals. They plan their targets and set deadlines every year. For gig workers, however, managers may need to set smaller (weekly or monthly), more incremental goals to keep projects on track and within scope. If a project needs to extend beyond its original timeline, managers should align gig workers and full-time staff on protocols for continuation. 

Conclusion

The flexible economy in India is expanding rapidly, permeating every industry. For managers, this means adapting their management strategies for a new critical talent group. Effective talent integration for flexible workforces can be complex, given that they are potentially less engaged and committed to organizational priorities. However, flexible workers, like full-time employees, need to be formally integrated into the organization. They need to be held to the same high standards, be it for performance or collaboration. Effective onboarding, clear communication, and a focus on relationship-building can help significantly.