Human Resource

4 Common Mistakes Companies Make When Integrating Gig Workers

Gig workers are emerging as the workforce of the future. They are the individuals engaged in livelihoods outside the typical employer-employee structure. No wonder they give a sense of ‘loose labour.’ The gig economy is expected to expand to 2.35 crore or 23.5 million workers in India by 2029-30, mainly because they are an attractive alternative to traditional hires.

Gig workers perpetuate a modern and easy-going employee concept. They are less expensive than full-time employees and can provide around-the-clock services. But you must follow a few golden rules while hiring them. Else your company might experience management pitfalls, legal issues, and poor business reputation. This article explains the most common mistakes employers make when integrating gig workers and how to tactfully avoid them.

Missing Background Checks

The Uber Files is a leaked cache of 1.24 lakhs records from the American ride-sharing company as of 2022. It included the 2014 rape case file of a Delhi woman by a cab driver. The San Francisco Uber headquarters blamed the ‘flawed’ Indian system of background checks.

Worker verification is a vital practice to increase customer safety. Avoid skipping the procedure since it can ascertain whether a blue-collar gig worker is trustworthy. But make sure you adhere to the laws meant to protect the privacy of the employee. The best approach is to work with robust software that can automate verification of employment, education, pin codes, and drug usage to ensure an informed hiring decision.

Inefficient On-boarding

On-boarding is as important for your gig workers as it is for regular employees. It helps them get well-integrated into the organisation. Not providing a structured program can lead to a lack of product understanding. This can cost you in revenue and productivity. The gig worker may also not feel supported and prepared to take on the job responsibilities. Other side effects include low morale and poor engagement.

AI-based on-boarding software can offer a tailored experience. It wipes out challenges like the unavailability of real-time data, paper-driven procedures, and human errors. You can go ahead and conduct bulk and individual on-boarding with analytics-based insights. These can increase your employee retention by 50%.

Not Providing Benefits

Gig workers do not quite qualify for health and liability benefits despite a significant contribution to India’s economy. Hence, they are exposed to greater risks than the ones with proper ‘employee’ status. But you, as a responsible HR, should not step back from offering them health and financial protection. Start with compelling perks for your gig workers if you wish to build meaningful relationships.

Get a full-stack comprehensive tech solution for your insurance-centric needs. This will include everything from policy distribution to claims assistance. Pick the software which promises to be flexible, affordable, and fully digitised. It must also streamline your employee’s insurance benefits claims with simplified cross-platform integrations.

Non-Optimised Pay Structure

One of the top mistakes employers make when integrating gig workers is not offering a safety net in terms of wages. While you have margins to think of, gig workers would appreciate a sense of security with reliable payment records and mutually agreed-upon contracts. You can also consider a ‘performance pay’ system as a means of better compensation.

Leverage the power of AI to ease your job. It can automate timely and accurate payments and help you to map a salary template to remote workers based on their job profile. It enables HRMs to see a list of gig employees with missing payroll inputs. AI-powered software can also include variable salaries and facilitate incentives. The wages are processed in compliance with statutory regulations.

Avoiding these common loopholes is the first step towards recognizing the contribution of your workers. HRMS software is the most viable solution to maximise the gig economy and succeed without hiccups.

Shalini L

One of the prime contributors for this blog, Expertise in Staffing and Recruitment, Content Strategist by Profession. A Music Lover & Traveller by Choice.

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