Gig Economy: Agile ‘Freelancer’ TalentDr Susan Entwisle

HPE Distinguished Technologist / Executive Director

@scentwisle

Gig Economy gives companies access

to global talent pool that can be

scaled, as need.

Average lifespan S&P 500 company decreased from 67 years

in 1920s to 15 today. By 2020, more than three-quarters of

S&P 500 will be companies you have never heard of yet.

Source: Professor Richard Foster,Yale University

$4,000 average cost to hire in US

68 days on average to hire in Australia

36% of employers can’t find talent when needed

$2.7 trillion impact to global GDP from use of more efficient

talent platforms - McKinsey

Time to hire has more than doubled over last 5 years

Source: LiveHire Investor Presentation

46% of companies are sometimes or frequently

understaffed. Impacts customer experience.

Source: ShiftGigs

Command and control, hourly model has

not really changed in decades.

Only 24% of Australians are engaged with their job.

60% are not engaged and 16% are actively disengaged.

Actively disengaged workers account for more quality defects, safety incidents, higher rates of absenteeism and lower retention rates.

Cost of absenteeism estimated at $7 billion each year.

Cost of presenteeism estimated at almost $26 billion.

Source: Gallup Study

CEO’s have rated talent management as top 3 challenge for a long time.

Source: PA Consulting

By 2020, millennials will form 50% of the global

workforce.

Source: PwC

Average life expectancy heading to 100

Source: UK Telegraph

Diversity and inclusion improves performance

Increasing need to integrate work into and

across life

Our world is hyper connected, flat and untethered

Today’s workers want flexibility and choice

enabled by technology

72% millennials want to be their own bossSource: Forbes 2015

Globalisation

+

Generational Shifts

+

Technology

Source: Shiftgigs

Gig economy provides agile talent needed to

thrive in ever increasing competitive marketplace

Significantly reduce time to hire - agility

Fill skills gaps – access talent needed

Challenge status quo thinking

Lower headcount – costs

Adjust to cyclical patterns – seasonality, market cycles

Achieve better outcomes – right engaged person, rewarded for results

Fixed price – better cost and risk management

Increased diversity – minority groups overrepresented

How the Gig Economy Works

Customers

post Gigs

Individuals

find Gigs

Marketplace

for Gigs

transaction fee for both parties

Key Characteristics

ONLINE PLATFORM connects workers to customers

Work WHEN you want on tasks of INTEREST

SPECIFIC RATE is paid for tasks

PAYMENT is INTERMEDIATED by platform

Source: Gig Economy & Future Work, N. Maganha

Uber has not only taken market share from

taxi industry but also increased its size

2012:

Annual earnings in taxi

industry BEFORE Uber:

$120 million

2014:

Uber’s annual earnings in the

city:

$500 million

Source: Gig Economy & Future Work, N. Maganha

San Francisco, USA

Source: Freelancer Investor Presentation

CONSULTANTS

BRAND AMBASSADORS

TECHNOLOGISTS

HOUSEKEEPERS

RECEPTIONISTS

SERVERS

BARTENDERS

COOKS

PORTERS

CALL CENTER AGENTS

RETAIL WORKERS

WAREHOUSE PACKERS

Freelancer is booming

40%American workforce

will be freelancers

by 2020

1in3Millenials freelance

3/4British freelancers

see their role as

long-term

78%Freelancers

recommend it

Source: Gig Economy & Future Work, N. Maganha

Task to be performed

Crowdsource ideas

No one size fits all model

Source: Forbes

Exception

Strategic

Augmentation

Workforce

Strategy

Source: Toptal

For workers, is this a race to the bottom?

Wage degradation – increased global competition -impact standard living.

Misclassified as contractor instead of employee – deprived of protections and insurance guaranteed by law.

Lack of job security, increased competition and longer hours -impact stress-levels / mental health.

Unregulated markets – regulators slow to respond – tax avoidance.

susan.entwisle@hpe.com

@scentwisle