I’m Working for You… for Now

Gig work is growing at such a rate that the “gig” part is starting to become redundant.

Much in the way that technology has transformed “digital marketing” into just “marketing,” gig work increasingly looks like conventional work, despite its name. According to a new study, gig workers, led by Gen Z, will represent half of the developed world’s workforce by 2027, up from almost a third of all workers today. The gig workforce is now growing three times as fast as its traditional counterpart.

Gig workers frequently range from mid- or lower-level contractors through senior executives who take on temporary assignments (as opposed to fully employed staffers hired to stay long-term). They provide the flexibility many leaders want, both because firms do not have to pay them benefits, but also because they can be let go when their skill sets no longer match the job. But some experts worry that a company loaded with contractors will need to keep reteaching and retraining newcomers, without developing an enduring corporate culture. “There’s an institutional knowledge lost with contractors,” says Louis Montgomery, a principal in the HR Center of Expertise at Korn Ferry.

It's a double-edged sword for workers as well, since they must focus on job security. But Chloe Carr, a communications specialist at Korn Ferry (and co-author of a career-focused column for Gen-Z talent), says gig work is no longer just a way to bridge the gap between corporate jobs or to make extra money. “Many people are choosing gig work because it gives them flexibility and stability,” she says. “That combination is more attractive than being forced to choose between one or the other.”

To be sure, the growth in gig work reflects two developments: the push among leaders for people to return to the office full-time, and the endless rounds of layoffs at firms in recent years. The unemployment rate among Gen-Z workers now stands at 7.5%, for instance, up from 5.5% two years ago. “The growth means managers and leaders must navigate a workforce that’s less predictable and more transient,” says Carr.

Emilie Petrone, a vice chairman in the Global Human Resources practice at Korn Ferry, says the rise in gig work underscores the importance, for firms, of making traditional corporate roles and career paths more attractive. That starts, she says, with more, not less, flexibility in permanent roles. “How do you adjust legacy cultures and teach managers to lead differently to attract and retain these types of workers?” Petrone asks.

One way firms are doing that is by designing rotations to mimic gig-based work—for instance, by offering talent exposure to different roles and areas of the company. They’re also providing portable benefits that follow workers across gigs, longer contracts that progressively offer more responsibilities, and training and development programs to enhance skills and experience. Indeed, Petrone says that the narrative about younger generations embracing gig work because of their disenchantment with traditional corporate opportunities isn’t entirely true. She suggests that leaders can win over workers who consciously choose gig work by “reframing the narrative around career development in a corporate framework.”

Learn more about Korn Ferry’s Talent Acquisition capabilities. 

Read more This Week in Leadership articles