Countless elements of our everyday lives have been transformed by technology. It’s making us more productive and more collaborative. It’s changing how we communicate and how we manage our time. And it’s creating new business opportunities that would have seemed impossible in the not-too-distant past.
These technological revolutions have allowed the gig economy to thrive. With new digital platforms emerging every week, traditional full-time employment is not the only realistic option for the masses anymore. 15% of the UK workforce is already self-employed and - with the higher pay and increased flexibility this way of working offers - it seems inevitable that this will rise.
Technology is at the core of every venture made in the gig economy. So it’s almost poetic that the tables are now turning. Not only is technology impacting on what’s possible in the gig economy; but the gig economy is impacting on the world of tech too.
Let’s take a look at three examples of the changes tech employers now face, as a result of the gig economy:
1. Pay is on the rise
People with in-demand tech skills don’t have to be shackled to a desk five days a week anymore. The gig economy has given them the power to choose how, where and when they want to work. They’re in the driving seat. So much so, that it comes as no surprise that they’re demanding a higher pay packet and their ideal projects too. In fact, our recent Tech Cities Job Watch report found that average IT contractor day rates have grown at double the rate of permanent salaries since 2015.
Contrary to popular opinion, this isn’t necessarily a bad thing for employers. While they may face a larger payroll, recruiting a contractor creates cost savings in other areas – such as capital costs and employee benefits. For maximum success though, it’s important that they choose the individual with the right skills to support the business objectives .
2. Demand for tech contractors is increasing
With more and more in-demand tech professionals going freelance in the gig economy, it comes as no surprise that employer demand for contractors is increasing too. As well as securing highly desirable skills, employers also benefit from increased flexibility and fresh perspectives.
Our research found that employer demand for contractors has grown by 2.23% in the last year – outstripping demand for permanent workers. However, saavy employers aren’t giving all of their most innovative digital initiatives to contractors to deliver – they’re using them to train their permanent workforce. As a result, they’ll be better equipped to meet strategic business goals in the long-term.
3. The gig economy is changing the skills gap
In today’s gig economy, in-demand tech professionals are increasingly moving away from permanent, full-time work. As a result, the organisations that want to recruit them have to move away from this employment model too, and turn to the contractor market in order to plug their skills gap.
The traditional make-up of the ‘IT department’ is going through a period of unprecedented change, in no small part because of the gig economy. However, while it’s vital that contingent workers continue to deliver short-term change, leaders also need to consider who will sit at the boardroom table in ten years’ time; contribute ideas on how IT can support future transformation; bring innovative projects to fruition; and enable business growth and a competitive edge.
Read more in Experis’ Tech Cities Job Watch Q2 2016 report.