The Rise of “Hobbyist” Workers

Traditionally, the purpose of having a job was to earn a living or to provide for one’s family.

Within the industrial and then information eras, pay figured prominently into the equation. But as we enter a more human era, other attributes – such as greater meaning and happiness – have taken on a much larger role.

To be clear, the importance of adequate compensation has not gone away. Still, employees now come to work with a more diverse set of expectations and motivations, where pay may not be the highest priority. One area where these changes are having a remarkable impact is among “hobbyists,” or people who have opted into the gig economy primarily for reasons other than pay.

As such, hobbyists and other “casual” workers provide an interesting lens for what the future of work might hold.

It’s worth noting the gig economy is currently between 8-10% of the entire economy, but could certainly expand as digital platforms enable more individuals to easily find and complete gig work. This is especially true with increasing automation, other technological advancements, and the changing nature of the traditional employee-employer relationship.

Looking across the potential changes that increasing rates of “hobbyists” could bring, a couple of dynamics stand out as particularly noteworthy.

The first is increasing pressure on organizations to create a work experience that can attract and engage these workers. As some reports have noted, high rates of churn and the steady supply of talent are major challenges in this new world of work. Companies will need to create positive experiences that cater to a wider variety of motivations.

The second is rethinking traditional attractors, such as benefits and employee perks. In their place, organizations will need to leverage more fluid aspects of their rewards portfolios. Social recognition is one example, where managers can demonstrate their appreciation for the immediate contribution that each gig makes, while also meeting the needs of individual gig workers.

The third is the continuing evolution of performance. Organizations will need to balance their need for one-off gigs versus those that are more dependent on repeat or ongoing work. The latter may require a greater emphasis on continuous performance conversations, in contrast to the infeasibility of semiannual or annual reviews.

Although the days of a fully “gigged” economy may be a little way off, the trends that those work relationships could bring are already present in the expectations of many workers. It may come down to HR leaders to help prepare their organizations for these changes in the very near-term.

What other changes do you think an expanding gig economy could bring?

As Globoforce’s Vice President of Client Strategy and Consulting, Derek Irvine is an internationally minded management professional with over 20 years of experience helping global companies set a higher ambition for global strategic employee recognition, leading workshops, strategy meetings and industry sessions around the world. He is the co-author of "The Power of Thanks" and his articles on fostering and managing a culture of appreciation through strategic recognition have been published in Businessweek, Workspan and HR Management. Derek splits his time between Dublin and Boston. Follow Derek on Twitter at @DerekIrvine.

Comments

[Dan Walter]

Great article Derek.

I live in Portland Oregon where the joke is that most residents work five jobs to guarantee they don't need a "job".

I have spoken to many of these people. Pay is still a real issue.

Many work in multiple jobs because the job they like that pays the most for the effort required does not provide enough volume to make a living.
If they were able to do the thing they love the most full-time they would happily do so.

Many have left the full time (or 2-3 part time) corporate job world because they have found they enjoy working as a driver for one (usually both) of the ride share companies AND they make more money.

Another real risk of the gig-based economy is the limited access to affordable health insurance and retirement plans. Where these are not major concerns of the millennial generation yet, they will begin to become problematic in less than 5 years. Any solution create today, must be able to quickly evolve into a far different tomorrow.

[E. James (Jim) Brennan]

The gig economy was one of the three organizational styles of the future predicted a year or so ago. It will make for fast-moving and agile but shallow enterprises. The lack of staff continuity will block any hopes of creating long-standing identity or an environment where institutional memory will be values (or even exist). When everyone is part-time, all work must be simplified to be done by essentially faceless and easily-replaced modular contractors. That will be ugly.