Using HCM Software to Manage People in a Gig Economy

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( — January 23, 2020) — From time management to payroll and beyond, HCM software is changing the face of HR as we know it.

But what kind of features do companies need to manage employees in a gig economy?

Many younger workers are embracing the gig style of work, which makes it easier for them to choose their own hours and their own projects to fit their needs. In fact, NASDAQ has projected that in 2020, close to 43% of the current American workforce will be freelancers. Even with a strong full-time job market, many employees are choosing to work on their own terms and get rid of the nine-to-five lifestyle that has long been the norm. 

This might not be a bad thing, either. Stanford University has done a study showing that remote employees are 13% more efficient than office-bound employees, according to the same NASDAQ article.

And since so many talented technical and creative people are turning to the gig lifestyle, several companies have been hiring more freelance and contract workers to fill their needs.

Things to Consider

When looking for the right HCM software for managing contracts and freelance employees, there are several things to keep in mind.

First, your talent pool becomes remarkably more extensive when you’re working with remote employees. You could have contract workers in every state or country, so finding HCM software that will help you keep track of different state and country tax codes is essential.

Being able to quickly onboard gig employees who may never set foot in your office is also essential. The HCM software you select should allow all your employees to log in and access the relevant information they need to complete their jobs as if they were sitting across the hall from you.

Collecting and presenting the right kind of data for your company and your managers is also important. Being able to seamlessly integrate your contract and freelance talent into your org chart and assess their strengths and weaknesses for future projects will help make everyone’s jobs easier.

Make Sure It’s User-Friendly

Ease of use is the most essential feature to look for in HCM software, especially if you are hiring gig employees, or are considering jumping into the world of freelance and contract workers. Being able to access all of the information listed above for every employee can help streamline processes and avoid unnecessary issues.

The ability to hire, extend contracts, and terminate employees should also be functions you can easily access in the HCM system. Freelancers and contract employees can move from one project to another quickly, so being able to add and remove them from your system without causing major hiccups is a must.

Providing the right information to the right people in your organization through a single system is the key to effectively managing people in our growing gig economy. Keeping these elements in mind will help you identify the right HMC software for your organization.