The expansion of the gig economy demands a new approach to compliance. Employers must reevaluate strategies to seize opportunities while minimizing hiring disruptions. The rise in gig drivers, as evidenced by Uber’s recent growth, highlights this demand. Sterling emphasizes the importance of robust identity verification to combat fraud. A shift towards gig models is reshaping HR dynamics.
The gig economy’s rapid expansion necessitates a reevaluation of compliance strategies by employers. As businesses aim to capitalize on emerging opportunities while minimizing disruptions to hiring strategies, they must adapt to new standards of compliance. This necessity is underscored by Sterling’s insights, as the firm warns of unpreparedness among businesses in managing a gig world where compliance plays a core role.
The recent financial success of Uber, with a significant 30% increase in gig driver numbers, illustrates the increasing preference for gig roles. Identity verification and Right to Work checks for gig workers demand robust processes to prevent fraudulent activities. This challenge is compounded by the limited face-to-face contact in gig roles, making it more difficult to ensure the person being paid is the vetted individual.
Sterling highlights the responsibility on employers to identify individuals with a history of fraudulent work to protect their business and customers. The growth of gig employment intensifies pressure on HR and talent management teams, as more workers prefer gig roles over permanent positions. 40% of HR professionals report facing competition from emerging employment models, contributing to skill shortages.
Steve Smith, President International at Sterling, notes the difficulty in engaging the gig workforce compliantly. With growing interest from workers, businesses must adapt quickly to these changes. “The future of work is clearly flexible,” says Smith. Businesses must not only prepare for flexibility but also ensure compliance across all elements impacting their operations, from Right to Work regulations to data processing standards.
Digital Identity progress is highlighted as an enabler of swift recruitment of gig workers. Even businesses familiar with gig employment must scale their screening and employment processes to match the pace of workforce changes. Clarity in compliance is essential, covering regulations, data processing, and suitable checks for specific roles.
As the gig economy solidifies its place in modern employment, compliance remains a critical area for businesses to address proactively.
