Globalization the Impacts on the Gig Economy
Globalization in terms of businesses and individuals is an ongoing topic of discussion and conversation in today’s world of work, but real globalization actually started in the early 1400’s with the globalization of countries, followed by globalization of companies and then individuals.
Globalization has directly impacted the workforce of today, making it possible for companies to expand to other countries, workers to be able to travel to and work in other countries and more recently, for companies to engage talent in global regions where they may not have a presence.
The first part of globalization started to break down after World War I, but then saw a resurgence after World War II. Globalization, since World War II, is partly the result of planning by politicians to break down borders hampering trade and was also driven by the global expansion of multinational corporations based in the United States and Europe, and worldwide exchange of new developments in science, technology and products, with most significant inventions of this time having their origins in the Western world.
Today, Globalization gets a boost from emerging and established collaboration tools. The introduction and growth of advanced platforms are more effectively pairing companies to talent across the globe, enabling them to compete for bigger business or simply open up new revenue streams. We are seeing many companies and individuals, using recruitment or matchmaking platforms that connect multinational corporations with pre-qualified consultants around the world. The service enables small to medium-sized companies to leverage freelancers and consultants with strategic expertise in certain geographical regions in order to contend for big contracts worldwide.
We envisage more companies offering services that make it easier to do business across different regions of the world, and this will continue to have a direct impact on marketplace businesses.
Machine learning/AI applications enabling real-time translation services will have a huge impact on the globalization of the gig economy.
As quoted by Constantin Gurdgiev of True Economics – Key Note Speaker at CXC Global’s ‘Globalization and the Future of Work Forum’, “Three in ten U.S. jobs are held by the Self-Employed and the workers they hire.”
“Thanks in large measure to innovation, the American workforce and the very nature of work is experiencing some profound changes. It’s not just the growth of new technologies, but also the rise of entirely new industries and new job structures. We’re seeing the tech-drive expansion of the gig or on-demand economy, giving workers flexibility and enabling them to monetize existing assets, like their cars or extra rooms in their homes,” Tom Perez U.S. Secretary of Labor.
Adapting to the Changes
As more companies embrace this trend and become more diverse, certain changes are emerging. Small and large business owners alike are learning that they have to adopt new policies and new guidelines to keep up with these changes and to ensure they maintain compliance and minimize their business risk.
While geographical and industry-specific particularities might exist, the macro shift in today’s open talent economy is global and applies to almost every industry sector. It requires employers and employees to come to terms with a new environment, in which flexibility and adaptability have priority over job security and long-term (if not lifelong) employment, structured environments, and standardized roles and responsibilities.
At CXC Global, we enable companies around the world to achieve a competitive advantage through managing non-permanent workforce quality, efficiency and risk, while reducing costs.
Contact us to begin the conversation.