With the gig economy expected to grow exponentially over the next few years, startups are emerging to simplify HR functions for contractors and employers.
The gig economy is no longer just for ride-hailing. Now startups are offering on-demand house cleaning, grocery shopping, delivery, and much more. More workers are signing on with these gig-based apps, creating a new set of HR demands.
Because gig workers are in a different category than full-time employees, companies need new solutions to address their needs, from background checks to managing business expenses to paychecks.
On Intuit’s Q3’17 earnings call, CEO and President Brad Smith estimated the gig economy to be about 34% of the workforce in the US, and projected it would grow to 43% by 2020.
As the space expands, startups are emerging to address 4 major pain points in the value chain:
- Vetting Laborers
- Expense Management
Startups in the value chain are gaining traction with some of the largest gig economy players. PerkSpot, for example, has teamed up with Lyft and Postmates to provide employees with customizable benefits. GoBank has partnered with Uber to provide bank accounts for drivers to facilitate instant payments.
We take a look at the major players in these categories to see how they’re filling the gaps in the gig economy and streamlining HR tasks for contractors and employers.