EconomicsGig Economy

The gig economy is booming in APAC

SINGAPORE (Apr 5): More than half (65%) of talent and hiring managers say that the gig economy is rapidly becoming the new normal for how businesses organise work, according to a research conducted by global workforce solutions provider KellyOCG – the 2017 Gig Economy Talent Manager Research.

In Asia Pacific (APAC), 84% of talent managers hire or use gig workers, outpacing the rest of the world.

About 79% of talent and hiring managers in APAC have mentioned that a much more flexible and fluid workforce will emerge as a way to navigate an increasingly dynamic global business climate.

Gig work, also known as free agency, includes diversified workers with many sources of incomes, contract workers or freelancers, small business owners, temporary workers or moonlighters.

Most gig workers are free agents by choice, with 75% of them choosing to do so for positive reasons, seeing it as a way to improve their personal and professional lives, rather than for economic necessity.

And the advantages are clear not just for the gig worker, but also for the organisations that engage them. Globally, 43% of organisations that engage gig workers experience at least 20% labour cost savings and 72% say that using gig workers/free agent talent gives their team/organisation a competitive advantage.

With the current volatile market conditions, employers are also more wary of adding to their permanent payrolls, instead are more receptive to the concept of a scalable, variable workforce in order to be competitive.

Furthermore, advancement in technology has made gig work more cost-effective and productive, allowing people to work from anywhere and thus creating a cycle of increasing demand to have more flexibility in their work style.

However, according to KellyOCG’s research, the gig workers as independents have greater autonomy about how, when and where to work—and employers are feeling pressure to adapt to these preferences. About 70% of talent managers using free agents see the employer-worker relationship shifting, with talent asserting more leverage.

Pete Hamilton, vice president & regional director of APAC at KellyOCG says, “Companies can harness the full value that these workers bring if they are successfully embedded into the organisations they work for. With APAC being a key contributor to the global gig economy, there is an urgency to introduce a more agile way of working to fully leverage the gig economy and move ahead.”

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