Market Overview

Korn Ferry HR Exec Survey: Percentage of Contingent, or 'Gig Economy' Professionals In Companies Growing; HR Leaders Say that's a Good Thing

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-- Majority Say Their Organizations Hire More Gig Economy
Professionals Than 3 Years Ago –-

-- Nearly Half Agree Hiring Gig Economy Professionals Saves Their
Companies Money --

A recent survey of Human Resource (HR) professionals by Korn
Ferry
(NYSE:KFY) shows the percentage of contingent or "gig economy"
professionals working in organizations is growing and that growth is
expected to continue. The reasons, according to the survey, include cost
savings, access to high-caliber talent and ease of managing gig economy
professionals.

More than half (60 percent) of HR professionals say that compared to
three years ago, gig workers now make up a larger percentage of their
professional workforce, and 42 percent say they plan on hiring more
contingent workers in the future.

However, according to Jeanne MacDonald, president of Global Talent
Solutions for Korn Ferry's RPO and Professional Search Business,
organizations should proceed cautiously.

"As freelancers, consultants and contractors become more prevalent, it's
important to keep in mind that the gig economy will not replace
traditional models of work," said MacDonald. "The key is to adopt a
blended approach to talent acquisition and talent management, one that
incorporates campus, contingent workers and full-time employees, and one
that, in essence, makes the most business sense."

When asked why their organizations hire gig workers, survey respondents
cited "access to resources for short-term projects" and "expertise we
don't have in-house" as the top two reasons.

"The speed at which massive amounts of data and evolving technology
cause changes in the types of workers needed is mind-blowing," said
MacDonald. "Effective organizations contract with people who have
high-demand, niche skills, which allows them to complete unique tasks,
and then move to the next company that needs their expertise."

Nearly half (48 percent) of HR respondents say these specialized
contingent workers perform at a higher caliber of work on their projects
than less specialized full-time employees, and 46 percent say hiring gig
professionals actually saves them money.

"Don't expect to pay lower rates for these skilled gig professionals,"
said MacDonald. "While they may cost more per hour or per project than
your full-time employees, they provide the targeted expertise that can
help quickly resolve issues and get results."

Despite the fact that many gig professionals work remotely, 67 percent
of the HR professionals surveyed say they are confident they know what
the gig professionals are doing on a day-to-day basis, and 42 percent
say these contingent employees are easier to manage than full-time
employees.

When it comes to blending gig professionals with full-time employees, 66
percent of HR respondents say they work to integrate the gig
professionals into the culture of the organization, and 59 percent say
these workers have a positive impact on culture.

"Often, gig workers have the benefit of working with several different
organizations and experience varying circumstances and situations," said
MacDonald. "They learn new ways of doing things, which can infuse new
ideas in existing employees, bringing enhanced innovation and results
for everyone."

About the research

The global Korn Ferry survey of nearly 500 (491) HR and talent
acquisition professionals took place in July and August of 2018.

About Korn Ferry

Korn Ferry is a global organizational consulting firm. We help clients
synchronize strategy and talent to drive superior performance. We work
with organizations to design their structures, roles, and
responsibilities. We help them hire the right people to bring their
strategy to life. And we advise them on how to reward, develop, and
motivate their people.

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