Australia Markets close in 1 hr 3 mins

The gig economy is growing, but the cracks are starting to show

(Photo: Getty)

Australian business leaders expect nearly a third of their workforce will be temporary workers within four years’ time.

Indeed most of them (90 per cent) are already hiring contractors from online job platforms like Freelancer and Airtasker.

But pivoting towards the gig economy also brings along teething problems.

According to a global survey of business leaders by recruitment firm Robert Half, the biggest concern about hiring contractors is that there is no guarantee of the standard of work (41 per cent).

Second on the list of employers’ concerns is a lack of an alignment or understanding of the company (38 per cent), and concerns over contractors’ eligibility to work (37 per cent).

Employers also feel unclear about expectations of contractors’ service (28 per cent), and some hold the perception that contractors are only freelancing because they can’t find a permanent job (28 per cent).

However, Robert Half Australia director Andrew Morris said that temporary workers were an effective short-term solution to filling skills gaps.

“As the world of work continues to evolve and skilled professionals seek out greater flexibility in their roles and careers, businesses can use this to their advantage and build up their contingency workforce to fill essential skills gaps,” Morris said.

But hiring managers will need to proceed with caution when sourcing talent from online platforms, he warned.

“Not every online recruitment platform is the same, and it pays to research any recruitment partner very carefully.

“The hiring process should not only evaluate a candidate’s skill and experience level, but also whether or not they will make a good cultural fit,” he said.

Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.