The future of background checks in the gig economy

study and forecast from Intuit. The rise of the gig economy is part of a broader long-term growth trend in the contingent workforce, which is expected to reach 43 percent by 2020. When talking about the gig economy, most are referring to flexible, independent job opportunities such as:

  • Transportation and/or logistics for people or products (e.g. Uber, Lyft, Grub Hub)
  • Finding work via online talent marketplaces (e.g. Upwork, OnForce, Work Market HourlyNerd, Fiverr)
  • Renting out space (e.g. Airbnb, Couch Surfing, etc.)
  • Providing other miscellaneous services (e.g. Task Rabbit, Gig Walk, Wonolo)
With more and more of the workforce working with/for multiple companies but maintaining independence, we’re often asked what this means for the safety and protection of companies. Aka – what role will employment screening play in this future economy? No doubt, it will be more important than ever. Lower commitment in the employer-employee relationship and the ease of movement for the worker between companies and locations will make it easier for some folks to “slip through the gaps”. Here are three tricky areas we think businesses should keep in mind:

Regulations

This is a brand new landscape and regulations are struggling to keep up. Companies such as Uber and Lyft have faced a multitude of lawsuits over the last few years as local governments try to understand who plays what role in ensuring the safety of the consumer using these products, as well as precisely what that responsibility looks like. Keep an eye on local and employment screening news for how this relates to your state or city.

Resources

More fluctuation in staff will also mean that companies need to commit more resources to onboarding, turnover processes, and training. The constant flow of contractors in and out of businesses, industries, and even regions, will result in the need for companies to bolster their HR teams.

Reliability

Despite popular belief, there is no federal database that background screeners can use to run a holistic pre-employment background check. Screening companies need to look to various local, state, and federal databases and points of contact to verify different areas of someone’s background. Given that it will become increasingly easier for contractors to move from city to city and state to state, it will become even harder to get accurate info on an individual. More than ever, companies must be able to trust their screening partner to deliver rapid turnaround times, accurate information, and committed customer service support in order to leverage their independent workforce. Get in touch today to learn more about how MYB can help your business in the gig economy.]]>

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