Technology | 4 min read

The Gig Economy and Its Impact on Workforce Management Software

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In recent years, the gig economy has emerged as a powerful force in the world of work. The gig economy is a specific labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to full-time, salaried workers. In short, many refer to it as gig work. Gig work has fundamentally impacted how businesses operate, and companies must adapt to the changes it brings. Otherwise, they risk market setbacks or, worse, extinction.

One of the main challenges for businesses in the gig economy is managing a flexible and fluid contingent workforce. To handle it effectively, companies have already found workforce management software to be an indispensable tool. Workforce management software, like Nowsta, enables businesses to optimize their labor force by automating scheduling, time and attendance tracking, and payroll processing.

The gig economy requires businesses to be agile and adaptable to meet the changing demands of contingent workers. This means that traditional workforce management software solutions may not be adequate. Businesses need a flexible, intuitive, and scalable system to accommodate the unique needs of a gig workforce and the prevalence of independent work.

Adapting to the Gig Economy: Why It’s Important to Contingent Workforce Management

Adapting to the gig economy is crucial for businesses looking to stay competitive and attract top talent. The benefits of the gig economy are clear: flexibility, autonomy, and the ability to work on multiple projects simultaneously – which is why more and more workers are choosing to work in this manner. In fact, a study by Upwork found that 36% of the US workforce is comprised of independent workers.

Businesses must provide their employees with flexibility and autonomy to stay competitive. This requires managing a constantly changing and fluid workforce. Embracing the gig economy can also aid in attracting and retaining top talent. Providing flexible work arrangements can set businesses apart in a crowded job market.

The Role of Technology in Adapting to the Gig Economy

Technology plays a critical role in adapting to the gig economy. One of the key benefits of workforce management software is the ability to automate tasks and processes, enabling businesses to manage a fluid and changing workforce efficiently. For example, automated scheduling tools help companies quickly and easily create schedules that immediately account for gig worker availability. Time and attendance tracking can be automated, reducing the need for manual monitoring and eliminating errors.

Another benefit of technology is the ability to collect and analyze data. Workforce management software provides businesses with valuable insights into the performance of their gig workers, including information on productivity, attendance, and turnover rates. By analyzing this data, companies easily identify areas for improvement and make informed decisions about their workforce.

Finally, technology can help businesses to improve communication with their gig workers. Through the use of mobile apps, companies can quickly send notifications about upcoming shifts or schedule changes. This direct communication eliminates confusion and ensures gig workers are always up-to-date.

Embracing the Technology of Tomorrow

Companies that fail to adapt to the increasingly prevalent gig economy may face extinction. To thrive in this environment, businesses must be flexible, agile, and capable of managing a dynamic and constantly changing workforce. Workforce management software is an essential tool for achieving these objectives. 

By automating tasks, gathering and analyzing data, and enhancing communication, workforce management software empowers businesses to manage their gig workforce more effectively, reducing costs, improving productivity, and increasing employee satisfaction. 

The gig economy poses both challenges and opportunities for companies. However, with the right technology and workforce management strategies, businesses can not only survive but thrive in this new reality of work.

Curious about what Nowsta can do for your business? Talk to an expert today.