Dive Brief:
- The on-demand workforce strategy, also known as the gig economy, may be gaining popularity among some employers, but it doesn't have long-term staying power for many reasons, according to labor expert Peter Capelli, writing at HRE Online.
- Comparing the on-demand workforce model to a "faucet"-style strategy (turn it on when you need workers, turn it off when you don't), Capelli writes that the concept "marks the low point of cluelessness for business leaders who think it is possible, or even desirable, to have such a workforce."
- One of the main reasons why this approach is doomed to fail in the long run is that it's primarily fueled by uncertainty. In fact, he describes the so-called "gig economy" as a "myth."
Dive Insight:
Even if it was possible to control workers using his faucet analogy, a good employer would not want a workforce that disappears when it is no longer needed because those workers would likely find someplace else to work.
Capelli adds that the "faucet" model will likely bring different workers into the mix every time it's turned on, guaranteeing inconsistent performance, low engagement and other downsides.
"Like most myths, this one sounds really great, at least for employers," he writes. "That is, until you think about it for more than a minute."
