How Has the Gig Economy Affected the Construction Industry?

Greg Barnett, Ph.D.

Senior Vice President The Predictive Index

Potential Benefits

1. With gig hiring, companies are able to run leaner operations (i.e., a smaller core) and hire when there is demand. This can save significant money and allow companies to bid on many more projects because they do not have to consider labor resource constraints that could prevent them from doing the work.
2. Gig-based hiring can remove much of the talent-management overhead, including recruitment costs and time, human resources processes, paying benefits and salaries, and even performance reviews. If someone doesn’t work well or doesn’t fit, not hiring them back is the ultimate performance review.
3. Gig hiring opens up the potential talent pool. Most research shows that gig hiring is more attractive to millennials because they’re afforded increased work flexibility and mobility. Additionally, it is appealing to highly skilled laborers who are seeking more work variety or control over their lives.
   1. Gig workers may not be as motivated or engaged as nongig workers because they are completing a specific job, not serving as part of a broader company mission. Employee engagement is important to productivity, so it is important to find ways to keep gig workers motivated.
   2. A less rigorous hiring process, focused only on skills, could lead to finding a bunch of skilled but underperforming employees. Companies should still vet gig workers aggressively, using assessments, interviews and other tools.
   3. Finding the best talent may cost more money. Because gig workers are open to the highest bidder, they have more negotiating power, especially when they know that companies have a specific and immediate need.