The term alternative worker was coined to describe the worker who doesn’t adhere to a “classic” work arrangement. Since this lifestyle has become more conventional in recent years, referring to these individuals as “alternative” might not be politically correct. In May 2017, according to the Bureau of Labor Statistics, around 20.5 million workers in the U.S. were considered alternative workers, making this type of professionals more mainstream, than alternative.
The September 2019 data shows the unemployment rate has reached a 50-year low, falling to just 3.5 percent. When the Bureau of Labor Statistics determines how many of those employed are part of the alternative workforce, they fail to account for a large group of people — mainly those that are alternative workers in addition to their full-time, classic position. Therefore, it’s difficult to say just how many of that large percentage of employed population are part of the alternative workforce. But it’s safe to say that it’s probably over the 20.5 million, as predicted by the BLS.
With the growing popularity of alternate workers in the gig economy, it’s time for your business to merge the old hiring expectations with the new. By combatting the trend of hiring remote workers or freelancers to complete specific tasks, it’s likely you’ll miss out on a large portion of talented individuals who could strengthen your organization.
What classifies an alternative worker?
The alternative workforce includes a broad spectrum of professionals comprised of contractors, freelancers and gig workers. In recent years, with the ever-increasing popularity of remote work opportunities, becoming an alternative worker is the best option for those who value flexibility and specializes in specific tasks in their chosen field. If your organization is willing to be flexible in return for the specialized skills of these individuals, the return your business may receive from an alternative worker can be extremely favorable.
Why is this type of worker beneficial to your business?
Many organizations aren’t yet ready to take advantage of the alternative workforce. According to a Deloitte survey, 41 percent of respondents believed it was important or very important to capitalize on this workforce, but only 28 percent believed they were ready to embrace this trend. What is surprising is that the same survey found that using alternative professional can enhance an organizations performance.
With many alternative workers specializing in specific tasks or functions, if an individual is needed for something specific, hiring a gig or freelancer allows you to place an individual in your organization until that task is complete and that transaction is concluded. Not only does this allow for an easy business transaction, it allows you to hire someone based on qualifications that specifically fit your needs.
Another benefit to hiring the alternative worker is the elimination of overhead costs. With gig workers, your business isn’t required to offer benefits such as insurance, 401k and paid sick time. While this can sometimes mean that you’re charged more for the services provided, you usually save money in the long run. More importantly, you get to hire the right person for a specific program.
How can you mainstream the alternative worker into your business plan?
- Change your idea about the definition of an alternative worker. We can no longer have the mind set of “managing” these individuals. Instead, we should leverage their talents and utilize them to fit specific demands that we have in respective companies.
- Seventy five percent of HR individuals surveyed by Deloitte were in support of sourcing alternative workers. Use this to your advantage and investing in your HR and recruitment teams, getting them the necessary training to negotiate and hire this type of professionals.
- For office expenses, take advantage of outside services such as Uber and Lyft. When your business utilizes these services to transport an important client from the airport or drive you and your team to a quarterly dinner, you’re able to eliminate a costly car services from your expenses and use the gig workers on an as needed basis.
- Find alternative workforce management tools like ADP to manage specific needs for your company such as payroll and accounting. You’ll then be able to focus your employees on tasks that help expand and grow your business instead of taking their time away with weekly or monthly administration duties.
By 2020, the number of self-employed, alternative workers in the United States is projected to reach 42 million. Even less surprising is that millennials are leading the trend, taking advantage of flexible scheduling and finding jobs specific to their talent instead of settling for jobs that have a very broad range of responsibilities. The alternative worker is no longer an anomaly, it’s a fact. Businesses now need to consider how they can smoothly and successfully add them into their long-term plans.
How are you incorporating alternative workers into your day-to-day operations?
