Role of HRM on the Gig Economy

Abstract

The gig economy, characterized by short-term contracts and freelance work, has significantly altered traditional employment models. This shift poses unique challenges and opportunities for Human Resource Management (HRM). As the gig economy grows, understanding the role of HRM in managing gig workers becomes crucial, particularly in terms of employee engagement, motivation, and retention. This research aims to explore the role of HRM practices in the gig economy, focusing on how HRM can effectively manage and support gig workers to enhance organizational performance and worker satisfaction. A comprehensive mixed-method approach was meticulously employed, integrating both quantitative and qualitative techniques to thoroughly assess the role of HRM in the gig economy. The quantitative component involved a structured survey distributed to 250 HR professionals across various industries, with an impressive response rate of 78% (195 respondents). The survey focused on HRM practices such as recruitment (30% of questions), performance management (25%), training (20%), and development (25%). In parallel, qualitative semi-structured interviews were conducted with 40 gig workers from diverse sectors, representing a 10% sampling from the total pool of respondents who participated in the survey. The study utilized SPSS software for quantitative analysis, focusing on multiple regression and factor analysis techniques.These interviews were designed to inclusively explore the gig workers' experiences and expectations regarding HRM practices, providing nuanced insights that complemented the survey data. The quantitative analysis revealed that 68% of HR professionals reported incorporating flexible recruitment strategies tailored to gig workers, with 54% emphasizing performance management systems adapted for short-term contracts. Training and development were less frequently addressed, with only 45% and 38% of respondents indicating specific programs for gig workers.Qualitative interviews further illuminated these findings, with gig workers expressing a strong preference for more inclusive training opportunities (70% of interviewees) and transparent performance management systems (65%). Many gig workers also highlighted the need for development pathways that could lead to longer-term employment or enhanced skills (60%), suggesting a gap between HRM practices and gig worker expectations. The study concludes that HRM plays a critical role in optimizing the gig economy workforce. By adapting HR practices to meet the unique needs of gig workers, organizations can achieve better performance outcomes and improve worker satisfaction. The research underscores the importance of developing HRM frameworks that are flexible, responsive, and aligned with the evolving nature of work in the gig economy.