Google has more contractors (gig workers) than actual full-time employees. Did you know this? I didn’t. Google employs roughly 120,000 contractors and has about 100,000 regular full-time employees. Welcome to 2020!
Here’s what most people don’t understand about the contracting world (it just happens to be my world at HRUTech.com!)
- Most contractors (gig workers) want to make as much money as possible, as such, most will choose to take the highest dollar offer in lieu of medical insurance and paid time off (PTO). Some states require a certain amount of PTO.
- Running a contract staffing firm, our contractors are our product. If our ‘product’ doesn’t work, we have zero revenue. So, it’s not like we can just have contractors stay home for 14 days and pay them their full-time wage. It’s simple economics, zero revenue in means no money to pay out, plus most large enterprise clients, like Google, are usually out 30-90 days in paying their contract staff invoices.
- Of course, every contract and temp staffing firm wants to do what’s best. They also want to stay in business.
Google understands this simple dynamic and they stepped up big time this week in making this announcement:
“As we’re in a transition period in the U.S.—and to cover any gaps elsewhere in the world—Google is establishing a COVID-19 fund that will enable all our temporary staff and vendors, globally, to take paid sick leave if they have potential symptoms of COVID-19, or can’t come into work because they’re quarantined,” the post read.
Google relies on approximately 120,000 temps and contractors on top of its 100,000 full-time employees, and not all of them have paid sick leave currently. Google’s post seemed to indicate that the fund would cover expenses for those not already able to take sick leave under current employment arrangements.”
That message right there is coming from a huge place of understanding from Google! We rely incredibly on this pool of talent, our contractors, and we have to find a way to make sure that the suppliers of this talent are taken care of so they can take care of their employees.
Uber and Lyft also came out this week and told drivers that tested positive for COVID-19 they would also pay them their average week’s wage to stay home and not drive. Another giant cost for these companies, but when you rely on gig workers as your business model, you better find ways to take help these folks out when a crisis hits.
Most organizations don’t consider “Total Employment” when a crisis happens. They circle the wagons around their own FTEs and not much else. I’ve spoken to multiple giant enterprise HR leaders this past week and this concept wasn’t even a blip on their radar! They could care less about their contractors and their partners for talent when it comes to COVID-19.
This is ultimately a much bigger problem for these organizations. I preach constantly to organizational TA and HR leaders they should be owning all talent in their barn. Total employment (FTEs, Contractors, Temps, Consultants, etc.). This is who really gets your work done, and if you don’t have awareness of all aspects, you are truly missing the boat.
What do you think? Do you feel your organization should be paying attention to contract and temporary workers during this public health crisis?
Doesn’t this further the argument that these workers are not contractors but rather employees?
You’re not wrong, but in unprecedented times, unprecedented actions have to take place.
We are a tiny staffing firm and work hard to serve both candidates and clients in a positive way. I’m not sure we are going to survive the next couple of months.
Totally understand this position, which is why I think Google is doing the right thing.