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UK – Businesses expect to employ more gig economy workers in the next five years

16 November 2016

Around half, or 49%, of large organisations with 100,000 employees or more in the UK have increased their use of gig economy workers over the last five years, according to data from Ernst and Young, published in collaboration with the Chartered Institute of Personnel and Development.

The data suggests that both employers and workers are continuing to move towards a temporary, independent workforce. Two-fifths, or 40%, of employers that responded to consultancy EY’s survey said they expected to increase their use of contingent workers in the next five years. A further 25% said they predicted 30% or more of their workforce would be contingent workers by 2020.

“The growing use of gig economy workers is down to strategic reasons beyond cost control and filling temporary posts,” said Tony Steadman, principal in EY’s People Advisory Services. “The survey responses suggest that organisations are welcoming gig workers as a part of their growth and change management strategies. The gig economy looks very different to the traditional picture of seasonal workers or workers who provide common services to consumers.”

Key reasons cited by employers for turning to contingent workers included: using expertise beyond the capability of the existing workforce (56%); helping to control labour costs (55%); helping to overcome resistance to change within the organisation (50%); and season work requirements (42%).

The statistics also revealed that 73% of short-term contingent workers had positive reasons for their independent work arrangement. Moreover, 20% said they were short-term workers because of a lack of suitable full-time positions. Meanwhile, 66% of gig economy workers believed the benefits of contingent working outweighed the downsides always or most of the time.

However, 68% of contingent workers indicated that they would like more options on healthcare and pensions. Most gig workers worried about the lack of paid holiday, or sick or personal leave (63%), and a lack of job security (48%).

Recently, both Uber and Deliveroo workers, who are part of the gig economy, have argued that they deserve workers’ rights and minimum wage with Uber drivers filing a lawsuit which then ruled that they are entitled to worker’s rights.

For more on the gig economy, click here.