Article

New Sense of Belongings

The emergence of new economy has brought about a paradigm shift in employment relationships, introducing innovative work arrangements like gig work and scrum work that require fresh approaches to organizational design and behavior to stay competitive. Nevertheless, the rise of independent work has made it challenging for companies to foster organizational belonging. So, what can companies do to ensure that their workers feel connected to the organization with a sense of belongings?

The global gig economy is expected to reach a whopping USD$455 billion by the end of 2023, with Asia accounting for a significant portion of this growth. China alone is projected to hit USD$315 billion by 2025, driven by a growing number of digital platforms and the rise of mobile payments. Despite the growing popularity of independent contracting, a Deloitte study found that most gig workers (69%) prefer the autonomy and flexibility of their current work arrangements.

To promote collaboration and knowledge-sharing among independent workers, companies need to establish a strong company culture that nurtures these values. By adopting a hybrid and a spider-web organizational structure, companies can leverage a networked system of individuals and teams that work together to achieve common goals. Companies like Airbnb and Uber have already adopted this structure, resulting in better communication and collaboration among their workers. For example, insurance company MetLife has created a program called "gig-within-a-job," which allows employees to take on additional gig work projects within the company. 37% of companies in a Deloitte global survey revealed they employed gig workers to access specialized skills not available in-house.

The importance of a well-designed organizational structure cannot be overstated. Companies with high-performing organizational structures are 1.5 times more likely to achieve financial success than those with less effective structures, according to a survey. A study by McKinsey & Company demonstrated that companies with agile organizational structures are 2.5 times more likely to be top performers in their industries. A poorly designed structure can hinder growth and lead to failure, while a well-designed one can foster innovation, rapid decision-making, and employee autonomy. Companies that promote a culture of innovation, like Google, outperform their peers by a margin of 5.5 times.

In the gig economy, workers often lack interdependence and stability, making it difficult for them to feel attached to their employer. To promote organizational belonging, employers can offer access to coworking workspaces, mentoring and coaching programs, employee recognition programs and business-social activities that encourage interactions among independent workers. According to the Harvard Business Review, workers who engage in these activities are more likely to feel a sense of belonging to their employer.

With the gig economy projected to grow significantly in the global job markets and the future of work patterns evolved, companies must adapt to this trend by rethinking their organizational design and behavior. By doing so, they can build a more engaged and productive workforce that is better equipped to succeed in the new economy.