Firms across the globe are facing a high-skilled labour shortage after the covid-19 outbreak.
Finding and hiring employees with high skills is never easy for any company, even the big multinational ones. Meanwhile, the skill gap and labour shortage are even becoming worse for firms after the covid-19 outbreak. Countries across the globe like the USA, Canada, Australia, and the UK, have all reported skilled labour shortages for economic recovery. Besides occupations in the supply chain, hospitality, health care, and education, knowledge-based occupations are also in high demand. These occupations are software developer, cyber security analyst, system architect, management consultant, marketer, finance analyst and manager, data analyst, etc. [1] – [6]. The reasons mentioned mostly for the shortage are long-covid impact (lives lost and persistent covid-19 symptoms affecting workers’ health), early retirement, generation’s preferences, white collar workers’ needs for higher flexible working time, and better work-life balance, lack of access to childcare, etc. [7], [8]. This shortage forced employers to seek more immigrant talents to fill the gap [4]. However, the process to bring immigrant workers into the country takes months or even years to complete. This puts firms in big challenges for their labour shortage and business recovery.Firms are experiencing a shortage of skills and expertise for digital transformation.
Gig Economy – the promising trend for filling the skill gap quickly and affordably.
Gig Economy not only helps workers have flexible work opportunities but also helps firms seek talents across the globe to fill their skill gap in the digital age and during the skilled labour shortage.
Gig Economy is not a new term or trend. It has been presented in the labour market for decades. And we have witnessed an increase in the gig economy recently with the emergence of ride-hailing platforms like Uber. However, McKinsey’s report revealed that it is not the labor-intensive industries, but the knowledge-based industries and creative occupations that witnessed the largest and fastest growth [9]. And not surprisingly, the freedom to choose assignments that suit their interest and talent the most, finding work purpose and “richer lives” are the reasons for this growth [9]. Gig Economy has bloomed even more since the covid-19 pandemic because of the business closure and remote working practices. More importantly, the trend has continued and become a solution for companies to seek talent for their skill shortage. There are several reasons for this continuing trend.A full-time job is no longer the preference of workers.
The 9-to-5 full-time job is no longer the preference of workers, especially the young generation, who prefer more freedom, flexibility, life purpose, and work-life balance. According to Gallup’s survey, 63% of millennials and 47% of Gen X said they would change jobs for flexible time [10]. Meanwhile, the IWG Global Workspace Survey revealed 92% of freelancers surveyed said the freelance job is extremely or somewhat important to them (55% and 37% respectively) [10]. The other reasons why people leave behind the security of their traditional 9 to 5 jobs to join gig work, according to the IWG Global Workspace Survey for global talent trend, are flexible schedule (84%), work-life balance (66%), freedom to choose where to work (61%), no commuting (60%) and self-development (39%) [10].Companies seek freelance workers for cost optimization.
Companies are more open to freelance jobs for cost optimization. Statista Trend Compass (2020) found that 79% of executives expected freelancers to replace full-time workers in the coming years. [10]Benefits of Gig Economy for digital transformation and the skilled labour shortage.
Gig economy helps companies find “immigrant” talents quickly and cost-efficiently. Meanwhile, talents have more opportunities to get hired for higher income.
Gig economy allows companies to find “immigrant” talents quickly and affordably to fill their skilled labour shortage and keep their business running. Businesses can source talent from anywhere globally to find the most suitable one for their needs, at an affordable cost. Specifically, businesses in developed countries can hire cheaper workers in developing countries thanks to the differences in pay levels. Or businesses in developing countries can hire skilled workers they need from developed countries at a more suitable cost. This is because there will be no relocation requirements, and no waiting time for immigrants to go onshore, etc. Meanwhile, for talents, the gig economy, like service marketplaces or consulting marketplaces, creates more opportunities for them to access international companies to get hired and earn extra income. Regardless of where they live, how old are they, if they are disabled or have childcare duties, they are all equal to hiring opportunities if they have the skill level and expertise that the businesses need.Gig economy helps firms find talents for digital transformation. Simultaneously, employees who are at risk of being replaced by machines have ways to earn a stable income.
Gig economy with platforms like consulting marketplaces, service marketplaces, or talent marketplaces will become promising destinations for both businesses and workers. This is because the benefits they bring to businesses and workers are undeniable.
Businesses can hire the skills they need for new business requirements efficiently in both time and cost. This is because they can choose the service package, service types, and skills that suit their needs and affordability.
At the same time, experts and workers with the skills necessary for digital transformation can provide services to more companies for higher income and a better reputation for their careers.
Summary
The gig economy is not a new trend, but a potential solution for firms to tackle their current skilled labour shortage. And platforms like consulting marketplaces are becoming promising destinations for firms to fill their skill gap in the digital age.At Kounselly, we help you connect with talents of your needs from all over the world through our consulting marketplace platform, to help you solve your skilled labour shortage problem quickly and efficiently.
REFERENCES
[1] S. Martin. “Occupations facing skills shortages in Australia almost doubled in the past year”. The Guardian, 2022. Available: https://www.theguardian.com/australia-news/2022/oct/06/staggering-occupations-facing-skills-shortages-in-australia-almost-doubled-in-past-year
[2] Wage Centre. “Shortage Occupations in the United States 2022”. Wage Centre, n.d. Available: https://wagecentre.com/work/work-in-america/shortage-occupations-in-the-united-states [3] Government UK. “Skilled worker visa: shortage occupations”. Government UK, 2022. Available: https://www.gov.uk/government/publications/skilled-worker-visa-shortage-occupations/skilled-worker-visa-shortage-occupations [4] H. Miao. “Facing a shortage of high-skilled workers, employers are seeking more immigrant talent, study finds”. CNBC, 2021. Available: https://www.cnbc.com/2021/06/10/study-employers-seek-immigrants-amid-shortage-of-high-skilled-workers.html [5] National Skill Commission. “The 2022 Skills Priority List”. National Skill Commission, 2022. Available: https://www.nationalskillscommission.gov.au/topics/skills-priority-list [6] C. R. Singer. “Federal Skilled Worker Program Eligible Occupations”. Canadian Immigration Department, 2021. Available: https://www.immigration.ca/fast-track-high-demand-occupations/ [7] K. Bach. “Is “long covid” worsening the labour shortage?”. Brookings, 2022. Available: https://www.brookings.edu/research/is-long-covid-worsening-the-labor-shortage/ [8] F. Lowenstein & R. Prior. “Long Covid is keeping millions out of work – and worsening labor shortage in the US”. The Guardian, 2022. https://www.theguardian.com/commentisfree/2022/sep/15/long-covid-is-keeping-millions-out-of-work-and-worsening-our-labor-shortage [9] G. Petriglieri, S. S. Ashford & A. Wrzesniewski. “Thriving in the Gig Economy”. Harvard Business Review, 2018. Available: https://hbr.org/2018/03/thriving-in-the-gig-economy [10] M. Amstrong. “The Future of Work”. Statista, 2020. https://www.statista.com/chart/20477/future-of-work-c-id/
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