November 19th, 2024 | Sterling

Gig Worker Checks: Are You Compliant?

The growth that the gig economy has experienced globally in recent years is unprecedented. In the US, it now is estimated that 46% of the workforce is made up of gig workers, while in the UK, this figure stands at 45%, and is close to 30% in Australia. And it’s showing no signs of slowing. In fact, data from Statista suggests that the gig workforce will top the 50% mark by 2027.

The challenge for gig businesses, though, is the increasing complexity of the market, particularly when it comes to compliance and employment law. So, what’s impacting background checks for gig worker checks?

A complex and ever-changing landscape

Almost every gig employer and business will be aware of the news headlines regarding worker rights in recent years. A number of the well-known delivery and transportation brands relying on the flexible workforce have faced questions around the employment status of their staff and therefore their obligations to meet employer rights. Queries have been raised on the issue, no doubt driven by new EU rules to strengthen the rights of these workers.

But this isn’t the first time that the gig economy has made the news agenda. We’ve seen historical reports of right to work and background screening ‘going wrong’ with fraudulent applicants slipping through the net with alarming consequences. The challenge is that the flexible way that these individuals are engaged makes it increasingly difficult for employers to not only manage the initial vetting process, but also maintain regular rescreening practices while also staying up-to-date with changing legislation.

Engaging someone as a gig worker presents a number of challenges. It can be difficult for employers to verify that the individual being onboarded is also the person who will be completing the actual work and being paid. This is particularly the case when there’s no day-to-day manager responsible for monitoring these individuals.

However, the flexibility and value of gig workers has made it more attractive for businesses and workers alike. That means there’s a growing onus on gig organisations to rethink their background screening and ensure they’re taking the right approach.

Screening shouldn’t be a one-off process

There can be a misconception in both permanent and gig screening that checks are only necessary when a person first joins the business. However, in reality, in many instances, screening should form part of both regular workforce reviews and safeguarding procedures.

A lot can change in a very short space of time. Regular monitoring and rescreening of gig workers can help identify any new red flags that need to be addressed. Depending on the type of work that an individual is engaged to do, there may be core background checks that have to be reviewed. Any new criminal convictions  or charges that could impact their daily tasks are a prime example. Likewise, if a gig business had onboarded new workers who have a time limit on their right to work, they may be required to do a follow-up right to work check once that time has elapsed.

Although this may initially seem to make sense, our research suggests that rescreening isn’t yet being adopted by the majority. In fact, we found that just 20% of gig firms perform on-going checks on their workers. At a time when gig businesses are facing greater scrutiny, this gap in rescreening presents a real risk that needs to be addressed.

Consistency is key for you and your gig workers

From both a compliance and an applicant experience point of view, consistency is crucial when it comes to screening and vetting. This ensures that nothing slips through the net in terms of the required checks that safeguard both businesses and their clients.

With globally mobile gig workers often being engaged, it’s key that you ensure they have the same experience no matter where in the world they’re located. Yes, there may be some nuances in right to work or background screening checks required across borders, but the experience for the worker needs to be both positive and consistent. .

Again, though, our research suggests that this simply isn’t the case. The majority (80%) of businesses revealed that they have an inconsistent global screening process. Given the general immaturity of this employment model and the constantly changing nature of compliance associated with gig engagement, it’s understandable that employers are struggling to achieve this consistency. As this more flexible economy grows, though, you simply can’t afford to avoid this issue.

Is standardising the way forward?

Perhaps the greatest barrier to consistent and robust screening practices in the gig economy is the lack of clear and regulated standards. As already mentioned, gig is still a relatively new and emerging employment model. That means that businesses and employment regulators alike are operating on a more reactive basis to the needs of the workforce.

What is interesting, though, is that many firms engaging people in this more flexible way are aiming for more clarity around standardising models. In fact, two-thirds of those we surveyed think there should be a gig screening standard. Who should establish and regulate this is another question in itself, but it is certainly clear that employers are seeking greater guidance.

Leaning on experts

While a standard isn’t going to be quick or easy to implement, there are ways to navigate the uncertainty of hiring these flexible workers in a compliant way. That’s where experts like Sterling add real value.

We’ve worked with global businesses for years, putting robust gig worker screening and vetting processes in place while also ensuring the candidates themselves have the best possible experience. Want to know more?

Download our report on Rescreening Considerations for Gig Businesses today, or contact the team for more information.

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