Gig Workers Are Being Defrauded

Exploited

Gig workers have become an integral part of the new digital global economy, yet they lack adequate safeguards and are being exploited by clients. 

One in three current and former gig workers admit being defrauded by a client, while 43% claim they were victims of ‘tip-baiting,’ where a prospective client offers a huge tip but dramatically reduces it after the service has been rendered. 

Most gig platforms do not seem to prioritize the safety and well-being of their workers. Scams are prevalent on these platforms, and clients take an inordinate time to respond, leading to missed opportunities. This creates a culture of mistrust between the gig worker community and clients. When trust erodes, faith in institutions declines, potentially leading to significant economic losses.

The modern economy

There are over 400 million gig workers worldwide today. Some work in transportation and marketing, while others are social media administrators and creative professionals. In 2023, gig workers contributed $1.27 trillion to the United States economy.

Gig workers empower businesses to be more agile, efficient, and flexible. Since they can start almost immediately, businesses can maintain strong momentum heading into peak season or periods of high demand. 

They are also useful for short-term projects lasting a few months, eliminating the need to hire full-time staff. With a pool of gig workers at their disposal, businesses can pivot into different strategies without necessarily making long-term financial commitments. 

Since they’re technically “outsiders,” gig workers bring firms a fresh perspective. Their insights could lead to innovation in processes or even new products and services. Gig workers have become essential partners for businesses, enabling them to compete in a rapidly changing business environment.

Mediators

Third-party mediators can help fortify trust between gig workers and corporations. While automated platforms are helpful, nothing beats a human recruiter who manages communication between the two parties. 

Recruitment agencies, usually offshore, have a track record of which clients are reputable and which have a history of deception. Gig workers can trust these third-party agents to connect them with a company that would treat them fairly.

Recruiters can also help them negotiate rates and understand their worth relative to industry benchmarks. While recruiters technically work for the business, it’s also in their best interest to have a strong track record, which ultimately benefits everyone involved.

On the flip side, these recruiters have a vast talent pool of gig workers. They actively search for on-demand talent, assess their capabilities, and present the most qualified candidate to the hiring company. This makes offshore recruiters one of the most important tools in business today, especially for building trust and productivity. 

The question for your business

Have you worked with an offshore provider to manage gig workers?

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