The ‘gig economy’ has been a hot labour market topic since the onset of the financial crisis in 2008. BETHANY WALES looks at the hidden ways those working within it are powering East Anglian businesses.
In recent years, the phrase “gig economy” has become synonymous with a very specific type of worker.
For many, it conjures images of people on bicycles with big square rucksacks on their backs, pedalling through the rain to deliver our Katsu curry before it gets cold.
The vast majority - 53pc - of gig workers are much less visible, providing office and desk-based services like web and software development, writing and translation, or legal and admin services.
As opposed to a regular employee, these workers take on temporary jobs or separate pieces of work each paid separately, rather than working for an employee, with arrangements lasting anything from a couple of days to several months.
INVISIBLE DRIVING FORCE
Indiah Stannage, a senior partner at the Norwich-based R13 agency, specialises in helping East Anglian firms find temporary office staff.
She said since 2020 this type of arrangement has skyrocketed, with gig workers now playing a vital role in the professional services industry.
Here in East Anglia, we have the third highest rate of gig workers in the country outside of London, making up around 1.2pc of the total workforce.
Ms Stannage said the surge in demand for temp workers over the past three years has been driven by a combination of economic uncertainty among business owners and the mass exodus of full-time staff during Covid.
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She said: “For companies taking on this type of worker it gives them a flexible workforce that they can pick and put down as needed.
“The economy is in a difficult place because of everything going on so having someone there just to cover as and when they’re actually needed means the firm can avoid a big commitment which might ultimately end in a redundancy.”
The recruitment specialist said more firms were also using gig workers to cope with the increasingly challenging task of filling vacancies.
She said: “So many people left their jobs during Covid, either to change industries, start their own business, or because they realised they just didn’t want to be working full-time.
“This huge increase in the number of unexpected leavers has intensified the competition for good staff and left a lot of companies shorthanded. The rate of people off sick has also gone up.
“We can help fill those vacancies on a temporary basis until they find their perfect fit or, in a lot of cases, find someone for them on a temp-to-permanent basis.
“It just helps them keep the business running even when they’re dealing with hiring challenges.”
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And, according to Ms Stannage, it's not just business owners benefitting from the arrangement.
MUTUALLY BENEFICIAL?
The UK's position on gig workers has received plenty of attention over the past few years, with a growing chorus of people criticising what they see as a lack of rights for those undertaking this type of work - particularly in the food delivery and private hire driving sectors.
However, Ms Stannage said those finding gigs through agencies like R13 are protected by robust legislation which gives them ‘equal rights' to their employed colleagues after 12 weeks.
She said: “Once they’ve been with a company for 12 weeks they are automatically entitled to the same pay as their permanent colleagues doing the same job, automatic pension enrolment, and the same amount of paid annual leave.
“It’s a win-win for a lot of people looking to maybe bolster their income or get extra experience in a certain field, without fully committing to a permanent role.
“Flexibility is key, for everyone involved.”
And although 16pc of gig workers rely on office-based services as their primary source of income, Ms Stannage said for many, being able to top up their finances with temporary roles was a welcome alternative to lower-paid, less reliable hospitality jobs.
She added: "Students are great candidates for these positions.
"It lets them work around their studies and get actual experience in the kind of industries they'd like to move into when they graduate.
"I also see a lot of people who want a financial boost around certain times of year - Christmas for example - and this gives them that without them having to commit to something long-term."
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