TES becomes driving force for SA’s gig economy

TEMPORARY Employment Services (TES) have been utilised mainly in first-world economies whereby organisations have the flexibility to procure required skills on a part-time basis.

These services are usually contracted to complete a project, provide additional staffing due to fluctuations in work volumes, and to cater for seasonal work.

Adopting a gig economy in South Africa could be the turning point in lowering the unemployment rate and increasing the country’s Gross Domestic Product (GDP).

In January, the US saw temporary employment rise by 81 000 jobs – 83.5% of new jobs just for that month.

The latest unemployment rate for

South Africa has revealed an increase of 32.5% with 7.2 million people jobless.

To bolster a gig economy in South Africa, companies require a constant supply of skilled, and unskilled staff, and the ability to manage the workforce. This is where a TES provider can assist.

A gig economy refers to a labour market whereby short-term or freelance work is preferred over permanent jobs. A gig refers to each task or project worked on by an individual.

This provides flexibility to those who choose this employment option.

The employee can then focus on more meaningful tasks, while simultaneously, being able to meet the demands of personal life.

Locally we will benefit from a gig economy as individuals are provided an opportunity to earn an income, as permanent jobs remain scarce. This flexible approach could decrease unemployment rates as individuals have the opportunity to do temporary work which also provides vital job experience for future endeavours.

This can be useful to younger generations in terms of skills development, skills specialisation and becoming multi-skilled, which makes them more “attractive” in the job market.

Ultimately both employees and companies will benefit, as employees become multiskilled and negotiate their own terms and conditions with the company, and companies obtain the skills they require while ensuring cost effectiveness.

Compliance all-round is an issue many companies struggle with. However,

TES providers manage the workforce, while ensuring compliance, allowing organisations to focus on their core business.

Temporary employment has not had a strong following in South Africa due to traditional and rigid business structures.

It is important to note that independent contractors are generally excluded from labour legislation – matters are judged on a case-by-case basis.

The gig economy provides many more pros than cons. This leaves a requirement for a partner that can help the organisation leveraging the gig economy to its full potential, while ensuring it is legally compliant.