The gig economy is rapidly changing how businesses operate, and business executives need to be aware of the trends to stay competitive. According to recent statistics, over 57 million Americans are now part of the gig economy, accounting for almost 36% of all workers in the US. This number is up from just 17% a few years ago and shows no signs of slowing down anytime soon. Professional employer organizations (PEOs) are playing an increasingly important role in helping companies manage their workforce needs while still taking advantage of the greater flexibility offered by this new model. By staying informed about these changes and leveraging PEO services when appropriate, business boards and CEOs can ensure that their business remains agile and responsive as they navigate this ever-evolving landscape.
With the rise of the gig economy, businesses are increasingly hiring freelancers and independent contractors instead of full-time employees. This trend has left many HR professionals wondering what role professional employer organizations (PEOs) will play in this new economy. While the role of PEOs is changing, they are still an essential part of managing human capital in the gig economy. In this blog, we’ll explore the evolving role of PEOs in the gig economy and why HR professionals should consider partnering with them.
PEO’s Role in Gig Economy
PEOs bring a lot of benefits to businesses operating in the gig economy. They provide businesses with access to a large pool of independent contractors and freelancers, which can help them quickly fill vacancies. PEOs also help businesses manage the legal and regulatory requirements that come with hiring non-traditional employees. They provide support in areas like compliance, taxes, insurance, and risk management, which can be especially complex when working with remote contractors.
PEOs Bring Expertise to the Table
PEOs have years of experience navigating the complexities of employment law and compliance. This experience is incredibly valuable in a gig economy scenario, where businesses might not have the same level of expertise. PEOs can help businesses navigate the shifting landscape of employment law and ensure they comply with regulations while still meeting their business needs.
Compliance is Key
Non-compliance can be costly, and businesses operating in the gig economy are especially at risk. PEOs are acutely aware of the legal and compliance requirements that come with hiring independent contractors, which means they can help businesses avoid costly mistakes. A reliable PEO partner can provide businesses with guidance and resources to help them stay compliant.
Access to Better Benefits and Perks
As employers move from traditional employment models to gig economy ones, benefits management can be challenging. PEOs make it easier for them to access high-quality benefits packages that make freelancers and contractors competitive with traditional employees. Some PEOs even offer perks such as paid time off and employee discounts.
Building Your Company’s Reputation
In today’s increasingly connected world, a company’s reputation can make or break its success. Building a reputation for treating employees well can be especially challenging in the gig economy where employees don’t have the same level of connection and loyalty as traditional employees. PEOs can help businesses build a positive reputation by offering benefits packages and other perks that show they care about the people who work for them. These positive signals can go a long way toward building a positive reputation and attracting top talent in the gig economy.
Keep pace with the Gigs
PEOs are becoming increasingly critical partners for HR professionals operating in the gig economy. They bring knowledge, expertise, and resources that help businesses navigate the shifting landscape of employment law and stay compliant with regulations. PEOs provide access to networks of independent contractors and freelancers, which make it easier for businesses to find and hire top talent. They also offer benefits packages and other perks that help businesses build a reputation for treating their employees well.
The Covid-19 pandemic factor now looks managed. Intercontinental air travel has picked up and is back to pre-covid levels. Office goers are back in the office. Some continue to travel the world still balancing work. The hybrid workplace is also catching up. Workplace management experts are also calling for a coming “forward to the office.” It is a way of asking organizations to rethink the office post Covid-19 pandemic. PEOs have to recognize this development and evolve accordingly. It is bound to get interesting.
