Thriving in the Gig Economy: A Blueprint for Business Talent Management

There is no denying that the Indian job market is undergoing a seismic shift in line with a global revolution. The gig economy, a term former New Yorker editor Tina Brown coined in 2009, is rapidly transforming traditional employment models. Organisational demands for cost efficiency and higher productivity align with a workforce that values flexible, challenging short-term projects over long-term employment, making gig work a mutually sensible fit.  

The rise of this model is further evidenced by data on evolving employment structures — worldwide and in our country. By 2030, 4.1% of India’s total workforce will be gig workers. While the number may seem small in comparison to the World Bank’s estimate of 12% global labour or 36% of Americans who are independent workers, it is certainly not insignificant. It translates to 2.35 crores (23.5 million) Indians who will partake in the gig economy in the next five years. In short, the gig economy is here to stay.

A steady expansion of the Indian gig economy has significant implications for business. To leverage opportunities arising from this shift, organisations must address a key aspect: the unique challenges of hiring and managing gig talent.  

Firstly, managing gig workers requires navigating complex legal landscapes. Gig workers are typically classified as independent contractors rather than employees. This means many labour laws like minimum wage and overtime pay do not always apply to them. Secondly, misclassifying workers can lead to reputational loss apart from significant legal penalties and financial losses, even if the latter is not directly quantifiable.  

For instance, ride-hailing platforms Ola and Uber, whose business models depend on gig workers, ranked at the bottom in the Fairwork India Ratings 2024. The independent report assesses labour standards within India’s digital gig economy on five principles — fair pay, fair conditions, fair contracts, fair management, and fair representation. Put this in context of Ola’s attrition rate of 47.48% and the cost of talent acquisition (pegged at 20-50% of existing talent), the problems with this model become evident.  

Thirdly, a lack of access to employer-sponsored benefits like health insurance, retirement plans, and paid leave demotivates gig workers, further complicating talent acquisition and retention for employers. While legal frameworks are underway in many states to evaluate fair compensation for gig work, such as the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, for now it is up to companies to develop models to bridge the gap.  

Finally, gig workers impact company culture significantly. Learning and skill development in a dispersed workforce require innovation. Addressing these issues begets the need for organisations to prioritise adaptive talent management strategies that are built on the foundation of effective leadership, clear communication, and evolving human resource frameworks.

Nassim Nicholas Taleb’s book, Antifragile: Things That Gain from Disorder, says organizations that adapt to and embrace internal transformation when faced with external shocks are better positioned to thrive. To effectively navigate the gig economy, three strategies are worth considering for companies: a flexible workforce model, reliance on digital platforms, and a culture of continuous learning crafted for different employee groups.

1. Reimaging workflow

A flexible workforce approach — from project assignments and ensuring contributions of gig workers complement the broader organisational efforts to fair treatment of all  — can redefine how businesses structure modern teams.  

For instance, Google relies heavily on temp workers to execute projects requiring agility and innovation. As of 2019, the tech giant employed 121,000 ‘shadow workers’ or temporary workers worldwide compared with 102,000 full-time employees. Democratic pushback led to Google changing its policies — minimum wage for temp workers of $15 an hour, comprehensive health care and paid parental leave, at least in the U.S. While the wage requirements and health coverage have now been voided to navigate shifting labour laws in the States, its extended workforce policies still emphasise fairness for all, making its dynamic workforce secure.  

2. Leveraging digital tools

A flexible workforce model lays the foundation to succeed at gig talent management. The right digital tools build the bridge to operational efficiency. Software like cloud-based project management platforms and intuitive virtual collaboration tools that don’t require extensive training but are still efficient and scalable can ensure all staff are onboarded without time or money wastage.  

Digitally advanced platforms can also help source superior gig talent. A study in the International Journal of Religious and Cultural Studies estimates that a third of all labour requirements will be mediated by digital platforms by 2025. Platforms like Upwork, Fiverr, and Taskmo are well-known for a diverse talent pool with specialised skills. By eliminating geographical barriers, these tools help find the exact fit for a job.  

Take the case of Chargebee. During its phase of hypergrowth, the SaaS company required additional people to scale its product. Almost all departments needed to quickly onboard new talent but lacked internal resources for traditional hiring. Chargebee leveraged Upwork to source contracted workers without running into hiring bottlenecks. Upwork cleared legal and operational challenges for Chargebee by evaluating work description, talent, and worker classification. This positioned Chargebee to go from time of hire to completion of projects in six weeks and to implement 24-hour workflows.  

Large organisations and startups alike can combine the expertise of these platforms with advanced tools and AI-driven analytics to streamline precise candidate-project matches.

3. Fostering Continuous Learning

Investing in the upskilling of gig workers is another critical aspect for organizations relying on short-term talent. According to a TeamLease Edtech report, 42.86% of organizations say the Indian gig workforce lacks industry-specific knowledge and 28.57% emphasize a lack of soft skills. Furthermore, an Upwork Research Institute study shows that 23% of businesses that outpace their peers are 1.3 times more likely to actively train gig workers, empowering them to experiment with new technologies and tackle new challenges. These findings highlight the need for targeted, industry-aligned training programs to meet both current and future workforce requirements.

To get the most from the gig economy, company leaders must rethink employee hierarchies. Instead of treating gig workers as a temporary solution, integrating them into core team structures would yield higher benefits. Executives should also consider fair compensation frameworks, competitive pay, and benefits for gig workers that align with their quality and skill requirements.  

Leveraging AI-powered talent platforms like Upwork or niche-specific platforms like Behance for designers or Codementor for developers that offer focused talent pools can streamline recruitment, ensure legal classifications are met and make onboarding easy.  

Additionally, building a culture of continuous learning must be prioritised. The above-cited TeamLease Edtech report says that 76.19% of those surveyed believe on-the-job training is most effective to help develop gig skills, followed by online courses (73.81%) and workshops. Offering gig workers access to industry-specific training, certifications, and professional development programs can improve internal productivity and contribute to workers’ overall satisfaction.  

However, to harness the true potential of the gig economy, leadership must shift focus from short-term fixes to designing inclusive talent strategies that align with the evolving needs of a dynamic workforce.  

Leaders must pay careful attention to all aspects of design of the new work arrangement. This entails a comprehensive reevaluation of workflows, addressing the fundamental questions of why, who, what, when, and how to ensure the design is strategically aligned for long-term success. Moreover, leaders must actively operationalise this design by establishing effective mechanisms and processes. Without such a structured approach, the integration of gig workers risks becoming merely a short-term solution rather than a sustainable workforce strategy. 

1. Sourcing and managing talent in a gig economy 
2. India’s Booming Gig and Platform Economy 
3. Gig Economy Skills: Equipping Youth for Freelance and Flexible Work  
4. Thriving in the gig economy: A guide for enterprises to source and manage gig talent 
5. Gig Workforce Talent Management Strategy 
6. Talent Management in the Gig Economy 
7. How the Gig Economy is Shaping the Future of Work in Technology 
8. Digital boom driving ‘high-end gig economy jobs’ shift