Correct Answer:
B. Increasing the use of contingent and freelance workers
The gig economy refers to a labor market characterized by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs. This trend significantly alters traditional HRM practices.
- The correct answer, B: Increasing the use of contingent and freelance workers, directly reflects the core impact of the gig economy. HRM departments must adapt to recruit, onboard, manage, and compensate a more fluid workforce that includes independent contractors, temporary staff, and project-based workers.
- A: Eliminating all full-time jobs is an overstatement; while the gig economy grows, full-time employment still exists and is crucial for many organizations.
- C: Reducing need for any HR policies is incorrect; HR policies become even more critical for managing diverse worker classifications, ensuring compliance, and integrating contingent workers effectively.
- D: Making recruitment obsolete is false; recruitment remains essential, but its focus shifts to sourcing and engaging skilled gig workers for specific projects.