Discussions around the future frontier of work are increasingly referencing the gig economy. If you are less familiar with this concept, Dr. Jamie Woodcock illustratively puts forth, “The gig economy, broadly speaking, involves working arrangements that are closer to ‘gigs’ than traditional kinds of jobs. This riffs off the idea that work is becoming more like playing a music gig at a venue, with no guarantee of continuing work, but with workers also free to choose where to go next.” Individuals are looking to gain more control over their careers in a wide range of industries, including creative and knowledge-intense occupations, and the gig economy is one way to do just that.

The Gig Economy’s Effect on Recruiting

The gig economy has had a notable impact on executive corporate recruiting, primarily by expanding the pool of highly skilled and experienced professionals available for short-term or project-based work. Such fractional work is ideal for many individuals and companies looking for C-level experience and niche skill sets on a short timeline—both for time-to-hire and for time-in-position—and is becoming increasingly popular. This can be especially useful for companies that need to fill a position quickly (such as a CFO role for a young company trying to expand) or for companies that have a specific project or initiative which requires specialized expertise (i.e., a CMO with experience in brand rollouts, etc.).

The gig economy is also changing the way many companies approach talent acquisition. In response to an increasing prevalence of gig work opportunities and the desire to fill them, the stigma against gig-style work is receding and, in its place, companies are increasingly searching for short-term top-level executives. This approach enables companies to be more flexible and agile in their hiring practices.

As employers struggle to define their long-term needs in today’s shifting economy, hiring a temporary leader who can address immediate needs is a highly attractive option. According to a 2018 survey of CHROs worldwide by The Conference Board and reported on by AESC, “Only 41% agreed that their workforce would be ‘predominantly comprised of traditional, full-time employees,’ and more than 79% agreed that the ‘percentage of directly hired contingent workers and freelancers will increase.’”

What are the Benefits of the Gig Economy?

Gig work allows for a measure of independence that many professionals enjoy, and the benefits for companies are numerous. Through a gig hire, companies and corporations can gain valuable executive experience without the long-term C-suite salary commitments that often accompany this sought-after qualification. Leaders in the gig economy must be on the cutting edge of the market and be able to nimbly navigate between positions and fields; as such, they often bring with them cross-industry experience. Due to the nature of working on a shorter timeline than their permanent colleagues, these individuals are strongly results-oriented and move quickly in all they do. They also bring with them the added benefit of easily delivering harsh truths to fellow leaders, as there is an understanding that they are not in a position to stay. Finally, for smaller start-ups or companies that are looking to scale quickly, gig C-level leadership can be ideal, as they can be hired and put in place quickly, and there is no expectation of what their position in the company will look like down the line.

What are the Challenges of the Gig Economy?

As with anything, there are associated challenges with the gig economy. Many investors encourage young companies to keep all information in-house, which flies directly in the face of short-term or freelance-style leadership. However, solutions and workarounds can be found in robust contracts covering all aspects of intellectual property and strong non-compete clauses. Additional concerns include the fact that the gig economy can be unpredictable. With the potential for freelancers to come and go as problems arrive and end, it can be challenging for companies to maintain a consistent level of talent and expertise, and to effectively plan for the future.

These challenges, however, are a trade-off. Fierce competition in the labor market, coupled with a lack of budget or time to hire full-time executives, opens the door for gig economy leaders to step in and cover gaps at a price point most companies are able to afford. If you are looking to hire experienced leadership professionals without the commitment of a long-term salary, fractional executive hiring may be an ideal way to inject highly skilled talent into your company and provide the short-term solutions needed.

If your company is thinking of embracing the gig workforce in its executive corporate recruiting, consider these useful strategies and ideas:

All in all, the gig economy is having a significant impact on how we view corporate executives. By embracing flexibility, building relationships, focusing on culture, offering competitive compensation, and staying connected to a talent pipeline, companies can quickly adapt to the changing landscape of the job market and continue to attract top leadership talent in the gig economy.

Looking for Your Next Executive Leader?

Whether you are seeking a gig or permanent hire, Scion Executive Search stands ready to provide you with solutions! Reach out to connect and learn about the many ways our team of experts can strategically provide support and ensure your organization is well positioned to optimize opportunities for growth and evolution in today’s ever-changing market!

About the Author

Bailey Olderog, Technical Writer (she/her/hers) 

Bailey Olderog brings her passion for storytelling to her role as technical writer at Scion Executive Search (SES). She is dedicated to accurately telling the stories of others in ways that articulate their vision. 

Prior to joining SES, Bailey worked for a 3D-printing tech start-up after working extensively in the military and government space. Her broad public sector experience includes ghostwriting for elected officials and military generals, researching and authoring private investigations and public reports, drafting testimony for hearings before state and federal legislative committees, and bringing a voice and audience to those without a platform. 

Through a career focused on providing direct support to top organizational leadership, Bailey understands the powerful impact that positive leadership has on organizations and the individuals that comprise them. She is dedicated to helping leaders find the roles in which they will flourish and positively impact the lives of those they work alongside. Bailey received her degree in political science from Southwestern University in Georgetown, Texas, where she also minored in studio art.