The Upsurge of the uptake for Gig Economy Workforce is on the surge from the Financial Institutions

As per the global consultancy PwC’s new research founded out that the Freelance workers will actively accomplish 20% of their overall task within a typical financial institution within the five years.

Around 52 percent of the overall financial institutions are poised to have more gig-backed workforce over the preceding three to five years as the economic impetus for the COVID-19 Pandemic remains disrupting conventional working models.

As per the research founded out recently, the Gig-economy talent, the prevailing accounts for the 5 percent of the financial services workforce, while the workforce accounts for 9 percent.

So, any chance to know who really the Gig economy workforce are? The Gig economy workforce are part time workforce sourced out for specifically assigned projects as well as skills, that are never exclusive for any particular proprietors. They may be employed on numerous projects for diverse firms, with no distinct period of time.

Contractors are also non full-time workforces; however, they mostly work entirely for a proprietor for a distinct period of time.

The PwC stated within a report backed upon the productivity, that: “within the subsequent five years’ time frame, the gig workforce will be allocated to accomplish 15 to 20 percent of the task assigned to them within a typical institution, powered out by the budget burden and requirement for accessing digitalized skilled expertise.

The global financial services leader at PwC US, John Garvey, stated that: “Leaders in the industry are looking seriously at their workforces to evaluate which roles need to be performed by permanent employees and which can be performed by gig-economy workers, contractors or even crowd-sourced on a case-by-case basis. Covid-19 and remote working have opened the door to accessing talent outside of a firm’s physical location, including outside of the country. What we are seeing now is a talent marketplace for gig workers in financial services, competing to take advantage of their specialist skill set and boost productivity within their businesses.”

Mr. Garvey also added further that: “Many of the most valuable companies in the world share one thing in common: they have embraced the platform economy as a business model.”

“They run the firm with relatively few full-time workforces and a growing percentage of gig-economy flair and skills that they can access on-demand, creating the establishments far more pioneering, nimble and budget-efficient.”

Notwithstanding progressively available on-demand talent, most financial establishments principally be subject to on full-time and part-time employees, according to the report, which measured more than 500 financial service businesses globally.

As according to Statista, around 56 percent of gig economy workforce in the US report having two or more jobs or projects. Meanwhile, MBO Partners, a US-based consultancy that offers business services to self-regulating contractors, estimates that freelance workforce will make up more than half of the US workforce within 2023.

The coronavirus pandemic has determined the swift upsurge of the gig economy by disrupting conventional working models and the resultant outcome is that many workforces pursuing gig work for supplementary income during these uncertain times.

The PwC study also found out that, “Upskilling the workforce is vital to enlightening productivity within the financial services industry and that it can be achieved by approval of the platform economy and gig workforce, among other measures.

Global financial services advisory leader at PwC Singapore, Nicole Wakefield, further stated that: “Gig economy workers enhance value by immediately bringing the digital skills needed by financial services firms to improve functions such as customer experience and improving institutional resilience, while the full-time workforce is being upskilled.”

Besides the gig-economy, the PwC research also acknowledged crowd-sourcing solutions as a crucial contributor to cultivating productivity. Crowd-sourcing – the outsourcing of effort to a large, sometimes approximate crowd of people – has more than doubled since 2018, according to half of the participants surveyed by PwC.

Of this, 80 percent who leveraged crowdsourcing said it added “high value” to their organisations. However, respondents to the study quoted some hurdles in taking on gig economy workers, counting confidentiality concerns (44 percent), a lack of information (43 percent), regulatory risk (42 percent) and overall risk avoidance (37 percent).

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