Canadian HR Reporter

CANADIAN HR REPORTER May 16, 2016 16 FEATURES Kyle Couch president and CEO of Spectrum Organizational Development The Toronto-based consultancy has 10 employees T he sharing or gig economy is not really that new, according to Kyle Couch, presi- dent and CEO of Spectrum Organizational Development — it's similar to the bartering systems from long ago. Today, it's about give and take, it's about shar- ing, it's about knowledge transfer and it's mutually benefi cial to all parties involved. "It allows organization and people alike to be nimble, and allows for a greater fl ow… so you're not trying to develop people necessarily — you bring in people that have the best use of skills, the best skill set at the right time, to get the best results at a certain point." ere's been a rise of people wanting control of their own destiny, he says, so they're able to move through projects that are meaningful to them, "they don't have to sit and rot somewhere." It's obviously a diff erent way to work and it's an evolution of contractual work, being much more project-based, says Couch. "Contractual is 'We need to ramp up our headcount for the next fi ve years for a certain demand.' I think this is more project-based: 'We have a certain deliverable we're trying to achieve and let's bring in an A-team to get this done perfectly and let's move on.'" at means fewer full-time employees and it's very much the future, he says. "Obviously, organizations will have a core group of longstanding employees but they will use this kind of work to not have dead wood lying around, it'll just be 'Move along.' And so obviously it's going to be scary for some people because they'll have to pick a path and stay on it and search for the next gig, but I really believe that this is very much going to be part of the future. Stability is a bad thing — you tend to rot," says Couch. "I think that the Aons of the world are going to have a hard time competing against savvy people using the Internet to fi nd good work." Companies have realized the advantages of a gig economy: "'Gosh, we can hire some- body, pay a bit more for the short term but we're not racking up a major pension plan or something like that, we can just move through people.' So I think it started by companies trying to save some money but I think that individuals are seeing the benefi t of it, that you can make a good living if you're able to keep moving." ere will be a divide, however, between those scared by the concept or content to stay in one place, and those who have the entrepreneurial spirit, he says. "I don't think it's generational, I think it's personality, I think its courage, you have to be brave to choose this path — but there's some remarkable things that come out of it." As for employers, the advantages include being far more nimble, fl exible and adaptable, says Couch. " e other thing is it minimizes your risk of having dead wood — employees that just run out of runway and then you're stuck with them. is way, you can renew contracts on a short-term basis and get exposure to better people, you get exposure to a variety of ideas, you don't get stuck in an organizational mindset, you're constantly bringing fresh ideas in." As for the gig economy workers, there's an onus on them to be true subject matter experts, he says. " ere's going to be a lot of per- sonal branding that'll have to come out of this, but the ben- efi ts are going to be control of your own destiny, more than anything." Bottom line, this is going to give a lot more p e ople meaning f ul work, says Couch. "It's certainly not for everybody, and that's a big thing. e problem is more and more jobs are going to go this way and if you're not natu- rally inclined to this, it's going to be very challenging in the future for work." But these people should not be considered "employees" in the true sense. " ey're not employees and they should never be treated as such. ey're brought in for a job, they should be measured on their ability to do that job, and they should be rewarded based on how well or poorly they do that job, and that's the end of it," he says. " ey should be considered team members, they should be considered project team members, but certainly you don't want to get into benefi ts packages and guaranteed salaries — it's 'Here's what you'll be asked to do, here's how you'll be compensated for it and when we're done, thanks for your time.'" As for HR's role, they have to be like brokers, says Couch. " ey have understand what is required, what the value of that is, and make ongoing off ers… (and) making sure you don't lose this person to another company for the six months you would need them." HR professionals would also have to be like networking ninjas, he says. "If your head of HR does not have a database or a LinkedIn profi le that has thousands of people in it so they can pull that skillset out tomorrow, networking is going to be critical. So if your HR person is stuck in the offi ce all the time and they are not out and about meeting people, going to conferences, seeing what's out there, what's available, what sort of services are there, good luck trying to fi nd them." president and CEO of Spectrum Organizational Development As for the gig economy workers, there's an onus on them to be true subject matter experts, he says. " ere's going to be a lot of per- sonal branding that'll have to come out of this, but the ben- efi ts are going to be control of your own destiny, more Tony Elenis president and CEO of the Ontario Restaurant Hotel and Motel Association The Mississauga, Ont.-based group has about 15 employees F or Tony Elenis, president and CEO of the Ontario Restaurant Hotel and Motel Association, the sharing economy is a challenge when it comes to the hospitality industry. "What it means to me is traditional peer to peer, enabling people to share products, ser- vices, objects that they might have with others on a short-term basis, I guess is what it comes to… But then there is a diff erence between when that happens and when commercialization happens or an enterprise that does that for more than just sharing but becomes a total core business. I would call it, at that point, it is not somehow regulated but it is really a profes- sional underground economy when it gets to that level." Technology really has been the instrument and the driver behind it, he says. "But, of course, money talks, so the idea of making money in an environment that's unrestricted, people jump on it and that's what really the growth, this phenomenal growth that has happened. at technology has allowed (the) creation of platforms and systems that can reach massive scales." It's employer-focused in that the employer really starts it and drives the agenda, "in whatever form that might be, but it has really changed considerably from a typical sort of business where again it becomes hushed," says Elenis. "Employers today, because the margins are shrunk, even in the traditional business, are looking for part-time, contract (employees) — that's smart management, really, at the end of the day, it's smart business, it's not disobeying the law… that is fair and that's how capitalistic societies work." e advantages for companies are obvious, such as not having to pay benefi ts and perks to employees, he says. But then is it a fair playing fi eld or community-minded when these employers are not paying taxes? "All that dough is not going into the defi cit, for example. Our governments have a tough time right now in cutting back on health, education, infrastructure that we all need sup- port in, all that, that's where taxes go, so as taxpayer, why are there businesses out there not contributing to that?" says Elenis But the appeal for workers embracing the gig economy is obvious, with more fl exible time — which millennials seem to like more than previous generations, he says. "It is easier perhaps if they have a bit more say in their scheduling and it's not sort of the typical… 'I have a boss and I have to go to work and follow the rules.' It depends on what relation- ship they have for it, so from that, the employee does have advantages." ere's also the appeal of extra money, he says. AirBnB participants, for example, may rent out their property to earn extra income on top of a regular job. "And it's hidden, with an unregulated industry… it's the wild, wild west out there right now. And, secondly, it s the wild, wild west when it comes to employer-employee relation- ships because… it hasn't been regulated to the point you can start talking about the em- ployee side yet," says Elenis, citing class-action lawsuits in Europe where people are often successful in claiming they're employees, not contractors. "In a normal employment market, a contractor would be given an opening and closing date, and usually it's short-term with a specifi c skill set job… well, this one right now, we haven't even got there yet to really comprehend it." But for employers, there are risks and liabilities — and that's where HR can help. "Right now, many are doing it but do not know the laws and HR practices, really, other than making sure that the well-being and the social aspects of employees are looked after… and making sure that employees and management understand that employees are the big- gest asset," he says. HR also knows about workplace regulations and laws such as occupational health and safety or employment standards, says Elenis. "All those (sharing economy employers) need to understand their obligations — right now they don't." But the appeal for workers embracing the gig economy is obvious, with more fl exible time — which millennials seem to like more than previous generations, he says. "It is easier perhaps if they have a bit more say in their scheduling and it's not sort of the typical… 'I have a boss and I have to go to work and follow the rules.' It depends on what relation- ship they have for it, so from that, the employee does have advantages." ere's also the appeal of extra money, he says. AirBnB participants, for example, may rent out their property to earn extra "Because the margins are shrunk, employers are looking for part-time workers... it's smart business."

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