While the pandemic world has shaken the business ecosystem, it has also helped it build up immense resilience to come back stronger after climatic disruptions and health crises. The first wave of the pandemic saw many blue-collar employees losing their jobs while the second wave saw a number of top-level executives resigning from their positions due to varied reasons. During these difficult times when major businesses suffered, there was a boom in start-ups, small enterprises and a major shift occurred in the hiring industry.
The human resource companies are now working harder than ever and the most trending recruitment model happens to be the “Gig CxO” model.
*“Gig CxO” is a term coined in 2009 by Tina Brown, an editor in New York. It refers to short-term, interim projects and independent assignments, in contradiction to permanent jobs. And this concept started gaining popularity again in 2019, when during the pandemic, the demand for “Gig CxO” surged. The trend also gained credibility post the 2008 financial crisis as leaders became proactive in seeking project based opportunities, rather than work with a single employer amidst an increasingly unpredictable environment.
The gig jobs were normal in the blue-collar segment but with changing dynamics of the work eco-system and evolution in hiring models, there is a surge in the demand for Gig C-level professionals on an assignment basis. The new hiring mandates are being introduced to make this model safer for both parties.
3 Facts you need to know about the “Gig CxO” trend are elaborated below: -
- More work opportunities: -
More than ever, enterprises in the medical and pharmaceutical industry, IT, banking and finance sectors are hiring experienced CxO consultants with specific skill sets on interim projects. As a matter of fact, the booming start-ups and small enterprises are preferring to hire CxO from the industry who can offer services and fruitful guidance for their business to grow at an accelerated pace, especially in Business Development and Customer Experience domains.
*As per an article in Forbes, the Gig economy is the future of work. It is projected that by 2030, approximately 80% of the workforce will comprise Gig consultants. With work flexibility becoming a norm, organizations are reforming policies to integrate Gig CxOs in their organizations.
The best thing about the gig CxO is - there is no retirement. In fact, you can start working anytime (after spending considerable time in corporate sector) and use your valuable experience to help businesses grow.
- Cost-effectiveness of the model: -
Hiring CxO’s for a specific objective or assignment saves a lot of company cost that goes into hiring and providing perks to permanent C level employees. In any given organization, *40-45% of salary expenses are incurred in paying top-level management. The gig CXO model can increase efficiency and profitability as it gives the employer a chance of sizing up the experts before they are hired on a permanent basis. And they can pay the experts on an invoice basis.
A Gig CxO also benefits as he gets to choose people and work on assignments of his choice based on his expertise. Often, the project-wise remuneration is much higher and also comes with some perks. Certain organizations also provide medical insurance to their gig workers. More importantly, senior professionals gain flexibility in time to re skill or pursue other interests simultaneously, something that is difficult in full time corporate careers.
A part time senior resource, at part time costs, that delivers a specific outcome, while working on multiple projects in his chosen domain is a win-win situation for both.
- Upgrading skills and technology: -
*According to research by PYMNTS.com, 38.4% of the US population secure their gig assignments through digital marketplaces like Upwork, Toptal and others.
While the Gig economy is slowly making its place in India and Indian markets look highly potential, it is understood that the Gig CxO professionals will have to keep upgrading their technical knowledge in their chosen domains to sustain the competitive edge. The online and offline world is full of opportunities. Being updated and agile enough to accept projects and provide solutions to the recruiters will take you a long way in the Gig economy.
With the transition happening in the talent acquisition sector and human resource management, the “Gig CxO” economy provides a fair chance for companies to hire the ‘Right candidate’ to handle their projects without major costs and liability. At the same time, CxO professionals also get a flexible environment to complete their projects. Since he works as an expert, he has the advantage of delivering on the outcomes faster, with lesser mistakes and with higher confidence, having been there, done that in the past.
Economists and Experts reveal that the “Gig CxO'' economy pioneered by COHIRE is here to stay and adapting to the new talent acquisition model is the need of the hour. Organizations need to formulate and reform hiring policies that will help them align with the non-conventional flexible work patterns to sustain and grow in a dynamic ecosystem.