As gig economic system companies – and different employers that implement gig-like workforce fashions – gear up for a brand new yr, it’s pure to look forward and start to set expectations for what the highway forward may convey. We’ve scoured the trade to create just a few predictions and spotlight traits we count on to see throughout the gig economic system in 2022. Here are the six most vital developments we foresee for the coming yr.
Artificial Intelligence Will Boost Efficiency
One manner we foresee the gig economic system maturing in 2022 is thru enhanced utilization of AI ideas. Most notably, as identified by Andy Tian of the Asia Innovations Group in a January 13 Forbes put up, “AI can shift work production from mature markets to emerging markets,” thereby as soon as once more fixing the age-old financial concern of idle capability. If one phase of an economic system or trade (or geographic area) is unable to provide needed work, AI can shortly establish when and methods to shift these work alternatives by gig work fashions – and naturally, the place that work ought to be despatched. Tian additionally notes that AI can help the gig economic system in 2022 by breaking down massive work streams into smaller chunks, integrating the outcomes again into the work stream, and optimizing work assignments throughout a bigger set of employees.
HR Functions Will Adopt Gig Economy Practices
In noting that human sources tech will get extra “granular” in the coming yr, Phil Albinus of HR Executive wrote a bit just a few weeks in the past leaning on software program skilled Derek McIntyre of TCP Software to show a manner wherein typical gig ideas will likely be utilized in companies throughout all industries. According to McIntyre, HR groups ought to take into account making a “gig worker repository” in 2022. By growing and sustaining a “consolidated database of vetted freelancers who can be notified when a work assignment arises,” McIntyre says HR groups and division managers can extra simply guarantee tasks are accomplished by gig-like assignments.
Gig Work Will Become Even More Multi-Generational
As famous by Robert Bruce at The Penny Hoarder, “the gig economy is open to all generations, and all generations are taking advantage of it.” He notes that there was a gentle improve in employees throughout all age ranges in search of versatile work preparations, and these numbers are anticipated to stay robust in 2022. According to a Wonolo examine Bruce cites, Baby Boomers (ages 57-75) and Generation X (41-56) are spending the most time as gig economic system employees on its platform. But Gen Z (18-25) is more and more getting in on the act. While Gen Z comprised solely 8% of the whole jobs accomplished on Wonolo as just lately as two years in the past, that quantity jumped to 22% in 2021. As these youthful employees enter the labor pool in higher numbers, look for that quantity to develop much more in 2022.
Pay for Gig Work Will Continue to Rise…Leading to Larger Talent Pool
Another latest report from Wonolo famous that the common hourly pay for gig employees on its platform rose to $15.59 in December 2021, a rise of over $1 per hour from $14.43 the earlier yr. Moreover, common hourly pay rose 7.4% in the fourth quarter of 2021 in comparison with the earlier yr, additional demonstrating that this isn’t a one-month or holiday-season anomaly. You can count on pay for gig work to extend all through 2022, which means that you could be want to regulate your budgets and your pricing fashions – and count on higher high quality employees concerned about becoming a member of your platforms.
Companies Will Face Business Model Challenges
While these working on this sector are accustomed to fixed authorized challenges to their enterprise fashions, the yr forward may transform significantly demanding. Thanks to the efforts of an aggressive Biden administration and energized state governments, a wide range of forces are gathering to make 2022 one other turbulent trip. Some of the actions of late that may have repercussions in the new yr embrace:
- A late December announcement by the National Labor Relations Board (NLRB) that it’ll rethink the present authorized normal for figuring out whether or not employees are unbiased contractors or workers. This virtually definitely means we’ll see a brand new check created in 2022 that makes it tougher for gig economic system firms and different companies to categorise their employees as contractors for union group and different labor relations functions.
- A January 6 announcement that the Department of Labor and NLRB will mix efforts on a wide range of fronts – together with information-sharing and doable joint investigations on allegations of employee misclassification.
- Don’t overlook that California’s Prop 22 – the poll measure that handed with 58% of votes guaranteeing that app-based rideshare and supply drivers might be labeled as unbiased contractors – was struck down by a state courtroom decide in August. While the battle continues at the appeals courts, the standing of this legislation stays unsure as we begin the new yr.
- And hiding manner in the background is the potential for California’s restrictive ABC check to be unfurled throughout the nation. Though unlikely given the present political local weather and the lengthy record of priorities stacked in entrance of it in 2022, there nonetheless sits a proposal in the Senate that will reform the nation’s unemployment system by requiring states to make use of the California model of the ABC check for functions of figuring out eligibility for unemployment insurance coverage advantages.
Massachusetts Will Take the Spotlight
Finally, it’s not all unhealthy information and roadblocks at the authorities stage. Another state is lining as much as check out the concept that the common citizen – to not point out the common app-based gig economic system driver – needs gig employees to retain contractor standing and never be saddled with an worker label. Massachusetts is heading into an election season battle that may decide the destiny of its state legislation concerning employee classification, with companies hoping to go a Prop-22-like legislation that may enable for continued flexibility for employees and firms.