4 Recruitment Strategies for Competing with the Gig Economy

Around 57 million workers are currently involved in the US gig economy, and workers in this sector span generations, as well as racial and ethnic groups. The gig workforce has transformed the way people view the world of work, and with Gen Z making up a considerable percentage of all gig workers, it’s becoming the norm for some. As a result, companies who want the advantage over the gig economy must think carefully about what modern workers want and how to plan their recruitment competitively.

If you’re going to compete with gig-economy employers, you’ll need to reassess your recruitment strategies and consider these four key points.

1. Improve your employer brand

Recruitment has become much more of a marketing task than it used to be and 84% of companies agree recruitment marketing is a worthwhile investment. This shows that a strong employer brand matters. Further research indicates active job seekers are more likely to apply for a job if the employer actively manages their employer brand.

While employer branding may not feel like the remit of HR, it is important to ensure it is put across in all communications. For example, job advertisements should be written in the same tone of voice and style as all other brand messaging. Anyone who considers working for your company should be able to get a good feel of its personality from your social media activity and online presence. Your employer brand also covers your incentives and support schemes such as healthcare benefits, sick pay and other rewards you may offer to those who come to work for you.

Payactiv incorporates a range of employee-focused benefits and incentives which may help keep candidates interested in working with your business. Our Earned Wage Access (EWA) allows employees to access their income earlier than payday. Another pull for potential gig-economy employees is the flexibility to get paid every day. Payactiv EWA users can select the percentage of their accessible wages to be automatically transferred to their Payactiv Visa® Card* every day. Payactiv funds the money and then deducts it during regular payroll cycles, not affecting the employer’s cash flow or payroll process. It gives employees faster access to pay and more liquidity to take care of bills and unexpected expenses. Many gig jobs currently offer daily pay, giving them quick access to earned wages.

While the gig economy attracts people for their individual talents and lifestyle choices, if you can create an attractive employer brand that looks after your employees, they may be convinced to consider your company.

2. Support learning and development

The opportunity to develop a career and not just simply work for pay drives many people to look for better work opportunities. Organizations that want to attract top-level talent and quality employees need to give them something to work towards. Organizations that want to attract top-level talent and quality employees need to give them something to work towards. In their Workforce Learning Report, LinkedIn found 93% of employees would stay with a company longer if they invested in their career development.

However, tailoring learning to deskless employees and on-the-go workers does pose a challenge. Central to giving these workers more opportunities is ensuring they can access development programs and training. This could be offered via eLearning or one-off training days they can attend. Mobile learning programs and apps can be fully tailored to the needs of workers used to the gig economy. In addition, investing in your employees’ development helps keep them loyal and improves retention rates.

3. Invest in technology

75% of gig workers say technology helps them find work more easily, and if you’re targeting these workers, you need to be on board with the same tech. Social recruiting is one of the main methods that gig-economy workers use to find their next role, so positioning your organization well on your chosen social channels will help ensure your ads are seen.

Utilizing technology as a key tool in your recruitment strategy will help you gain interest from savvy gig-economy workers. If your adverts are properly designed and offer the incentives and flexibility they look for in a job role, there’s no reason why you won’t attract qualified candidates.

The right technology can help businesses hold onto their employees too. Payactiv Connect is designed to bring deskless employees and shift workers a sense of belonging and help them engage with their employer. It also allows employees to access company announcements on the go and find extra shifts when they need them. It even allows employees to get involved with the social side of work with group chats and private messaging facilities, ensuring employees feel part of the organization.

4. Simplify interviewing and onboarding

Gig workers are often used to an almost instant yes when they apply for a role. If your interview process is significantly longer, followed by an even more drawn-out onboarding process after that, there’s a chance they won’t hang around. Candidates may look elsewhere if you keep them waiting due to background checks, aptitude testing and other compliance tests. While not every work environment can bypass these checks and tests, take the time to audit your processes and see if there is room for improvement or streamlining.

Many companies have taken their interview process online via video. This is ideal if a candidate isn’t local but interested in moving into the area or regularly moves where the work is. Others are embracing digitization and offering online onboarding and training, so this stage of starting work is completed quickly, and they can begin their first shifts.

The gig economy isn’t going anywhere, and is likely to attract more workers, not less. Organizations that want to compete must take a leaf out of their book and offer more. Provide incentives and rewards that compete with the latest offerings from the gig economy and rethink your position so potential candidates are drawn to your firm.

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*The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant  to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are  associated with the approval, maintenance, and use of the Card. You  should consult your Cardholder Agreement and the Fee Schedule at  Payactiv.com/card411. If you have questions regarding the Card or such  fees, terms, and conditions, you can contact us toll-free at 877-747-5862,  24 hours a day, 7 days a week.