Over a quarter of SMEs within the UK depend on gig economy workers

posted by 4 years ago in News

Decision makers of UK SMEs that have hired gig economy merchants during the past 12 months’ have demonstrated the significance of adaptable employees within their organisation. In fact, of those surveyed, 66% believe that gig economy workers have actually made an impact to their profit.

Amongst the decision makers 10% revealed that the gig economy workers make up at least 90% of their workforce and 40% feel that gig economy workers add up to a minimum of a quarter of their workforce.

The decision makers were asked to describe their gig economy workers’ performance where just under 60% claimed that gig economy workers gave them “flexibility for workers” while over 338 explained that gig economy workers provided “new opportunities.”

However, although there is a positive feel for gig economy workers, decision makers are still wary when it comes to the risks of hiring them. When the decision makers were required to tick the most relevant reason, more than 50% chose “lacks security” while just over a quarter selected gig economy workers can be “exploitative” and a fifth believe that they can be “unfair.”

The impact of having a gig economy worker can also harm the business and a vast majority of the decision makers who took part concur that hiring gig economy workers can cause an absence of security for their business. Two fifths admitted that they perceive gig economy workers to be less dedicated while just under a third said they fall under a less motivated category.

Head of SME proposition at Zurich, Paul Tombs commented;

“With so many UK SMEs employing gig economy workers, it would be a mistake to characterise the entire gig economy as an exploitative tool that only benefits employers. Self-employment is on the rise and demonstrates an increasing demand for flexible work which is beginning to shape the way businesses think about workforce management.

“While politicians and manipulating staff, when we speak to business owners, it is clear that the majority associate it with flexibility and opportunity. If the gig economy has sprung up as an imperfect solution to the increasing demand for flexible work, then a review of the system should focus on reforms that maximise the benefits for all parties rather than descending into a blame game.”