There’s no doubt that the world of work has changed for many of us. Thanks to better connectivity, more people than ever are deciding to go at it alone and work from home. Mobile apps and websites have grown up; they can help us get everything from a taxi to a food delivery. It has given rise to what is generally known as the gig economy.

For some, this has given them the opportunity to work flexibly, earn a living and even head out on their own. Others criticise it for low wages and a lack of workers’ rights. Whichever side of the argument you stand on, there’s no doubt that our legislation has not entirely kept up with the changing employment landscape.

The Growth of the Gig Economy

Technology has driven the growth of the gig economy. Those neat smartphones and tablets we all seem to have nowadays have given us unprecedented access to the world around us. We can sit on a train and shop in a big store, watch videos and play games. We can also hire a cab by contacting someone close to us who is using the same app and is willing to drive us to our destination. If you want a meal delivered right to your door, one of the bright young gig economy workers will pick it up and bring it round.

It’s so popular that the number of self-employed people has risen to 15%, the highest it’s ever been. The attraction is quickly apparent for those who want to join the gig economy. To a large extent, you can choose to work as and when you want – ideal for people who have a second job, those who want to spend more time with their kids or those who just don’t want to work a normal 9 to 5. In many cases, you can set your own rate, build up your customers and earn a decent living.

For example, thousands of freelancers in marketing now work on platforms such as People Per Hour. Companies don’t have to spend large amounts of money on full-time staff, they can simply hire as and when they need work doing. If you have a bike you can join a delivery company. If you have a car you can set yourself up as a private taxi.

But it’s not all sweetness and light.

In recent times, successful companies such as Uber and Deliveroo have come under fire. Deliveroo managed to post some £130 million in revenues and Uber has been valued in the billions. The way ‘workers’ were being treated led to legal action last year. In 2016, Uber found itself at a tribunal as two drivers took the company to task over their lack of holiday pay and sickness benefits and the fact that numerous workers were not being paid the full minimum wage. For all intent and purpose, Uber considered its drivers as self-employed and so took no responsibility. They were there to provide a platform, not develop someone’s business.

In October, Uber lost the right to classify their drivers as self-employed. It was a big moment in the gig economy and one which could have major ramifications over the next year or so. The union Unite also joined in the chorus stating that it would now begin to investigate how many other people are affected by substandard working practices. Citizens Advice claimed that nearly half a million workers may be wrongly designated as self-employed in the current economy.

Do We Need to Review Workers’ Rights?

There are many who believe that it’s time for a review of workers’ rights, especially with the rise of the gig economy in recent years. How someone is defined as self-employed is important. If companies are doing it simply to get out of paying or administrating all the normal things that other companies do, then new legislation could be on the cards. It’s not just the UK that is facing this challenge. The gig economy has taken off in many parts of the world including mainland Europe and the USA and many are encountering problems.

The Business, Energy and Industrial Strategy Committee has now begun a review into the future of work and what it means. This is not only covering areas such as the gig economy but large corporations such as Sports Direct which have been accused of mistreating their employees in recent times.

The Future of the Gig Economy

In some ways, the gig economy has moved too fast for legislatures to catch up. That has left some pretty important questions about workers’ rights unaddressed, including our right to a minimum wage, the question of whether someone is or isn’t self-employed, and access to sickness and holiday pay. In turn, changes that make companies like Uber responsible for this could have a severe impact on the economy if they’re business model is no longer viable.

For the government, the gig economy has played an integral part in lowering employment but the system has some inherent weaknesses that need to be addressed on both sides. There’s no doubt that many people find it useful and enjoy their new-found freedom to work whenever they want. Many do indeed earn a good living.

But that doesn’t mean there shouldn’t be protections in place and rules that the next gig economy startup needs to follow.

How we gather and use data and what happens to it is a major concern for the modern world. The way businesses and organisations use your personal and private information has been addressed to date by the introduction of legislation such as the Data Protection Directive from the EU. But there have always been issues about how robust this is in our increasingly digital lives.

According to the managing director of DQM GRC, Christine Andrews:

“Unfortunately, for too long, some organisations have presumed consent, worked with implied permission, and experienced data losses that have taken months to detect and report.”

In April 2016, the EU adopted the General Data Protection Regulation and it is set to become law in all member states on 25 May 2018, including the UK.

What is The General Data Protection Regulation?

The GDPR is essentially an updated version the existing Data Protection Act with added clarification and new levels of accountability. One big change is that any company outside the EU that is targeting consumers in the EU needs to comply with these data protection regulations. The other is the clarifying and strengthening of accountability – the regulation puts the onus on businesses and organisations to demonstrate that they are complying with the rules. This includes maintaining documentation, producing data impact assessments and being transparent about how they carry out data protection.

Some businesses and organisations will need to appoint a data protection officer with sufficient knowledge and experience to handle data protection issues and put the appropriate processes in place. The ability to withdraw consent easily for users and improving how they are made aware of their rights is also included in the new GDPR. The notification of data breaches is another important change and geared to making sure all organisations are transparent in their processes.

What it Means for Businesses

If you already adopt best practice when it comes to data handling, you probably don’t have much to worry about or much to do in regards to the new GDPR. If you still haven’t got your strategy or a transparent policy in place, then it’s time to start putting one together.

The GDPR is going to change the way that customers expect you to handle their data and getting on the wrong side of the regulation could well cost you in various ways including sanctions and a large fine – up to 4% of your business turnover or up to a £20 million.

While the regulation doesn’t come in until 2018, businesses need to prepare for the GDPR right now:

• The regulation makes it harder to get consent to use data and easier for consumers to withdraw that consent.
• The right to be forgotten is included.
• Businesses not only have to comply with the GDPR, they need to demonstrate that they are doing so.
• Your business may have to appoint a data protection officer if you fall into certain categories.
• There is a greater onus on businesses to protect all personal data better and report accurately and transparently on all breaches.
• While businesses might be vulnerable to sanctions from the ICO, the regulation may also open them up to claims from disgruntled consumers and users who feel their data has not been handled correctly.

The first thing businesses will need to do in the lead up to 2018 is to evaluate if they are within the catchment of the GDPR. For many this will be the case and that means there is plenty of work to do. You will have to review your current compliance, put in additional measures where needed and even arrange to hire a data protection officer. The biggest problem many businesses are going to face is creating a process for maintaining accurate records which could involve implementing new software as well as updating permissions, including the way they communicate with users.

The cost to UK businesses to comply with the GDPR could be as much as £320 million a year, according to a recent report by the Ministry of Justice. With as much as 70% of businesses stating that they will need to put in new IT systems in order to comply, the new regulations could cause a major drain on resources for organisations across the board. Large companies that deal with ‘big data’ will feel the impact of the GDPR more than any other. It could also impact on industries in different ways, particularly on advertising which has suggested potential losses of some £600 million over the next few years.

The Brexit Effect and GDPR

While leaving the EU and making our own rules might eventually exempt the UK from the GDPR, it’s more likely that we will retain the regulation for our own use and, indeed, the Government have already confirmed this is the case. The regulation applies to any business, wherever they are located, that operates in Europe or targets Europeans as customers.

The advice for all businesses that fall under the net of the GDPR is to start developing the right processes and procedures now rather than waiting until the regulation comes into effect.

Big data has become increasingly important, particularly for big companies who are looking to collect as much of it as possible and have the resources to sort and develop it profitably. Data collecting and selling has subsequently become a business opportunity and there are now sites that act as brokers for all sorts of information. And for savvy SMEs with a little bit of know-how, selling data could be a way to bring in valuable additional revenue.

We’re not talking about selling off your customers’ email addresses and other personal information here. It’s the details about their online interactions that are becoming more and more important to big corporations and other organisations. It allows businesses to analyse trends, drill down into customer behaviour and produce the kinds of products and marketing strategies that lead to more sales.

What is Big Data?

As a collective species we produce huge amounts of data every second. We do it when we buy a particular product, post on social media, share a particular image, click on a link to a website, watch a programme online, reply to an email or put our demographic details into an online registration form.

Each little packet of data on its own isn’t much use but combined it produces a detailed vision of the world that businesses can use to target more effectively and improve their revenue through sales and click throughs. This is big data and, according to IBM, we produce 2.5 quintillion bytes every day.

To put it into better context, 90% of the data we have available was actually only produced in the last two years. This data comes from everywhere and almost all businesses, organisations, institutions and individuals produce it.

How Do You Collect It?

Businesses are willing to buy data but you have to collect it first and it has to be useful. If your business is dealing with a decent number of customers and you have a good CRM system, then you are already collecting the data you need. That could be anything as simple as where customers come into your site, when they buy, what they buy, how old they are, what sex they are and whether they come back. If you have the right software installed, then you can harvest all this data and make it available to third parties for a price.

Again, it’s worth pointing out here that we’re talking about anonymous data rather than important stuff like names and email addresses. Once this data has been collected it can then be sold to global networks that buy data. You do this by using a data broker who will be able to make sense of the data and knows how to package it. Essentially, you can collect data from your website or something like a mobile app and create what is called a passive revenue stream.

How Much Can You Make?

Data monetisation is on the increase and according to statistics around 30% of businesses will be taking it up this year to add to their revenue stream. Obviously, much will depend on the level of traffic you have and the kind of data that you collect. For many companies it provides a way to earn extra money without putting in ads and, in some cases, can significantly increase monthly revenues.

You might think that as an SME it isn’t worth collecting data but you’d be surprised how much you can make. And, as your business grows, you could be earning a healthy secondary revenue without doing much at all.

But are there any downsides?

There is currently little in the way of meaningful oversight for anonymous data collection and buying and selling it to third parties. As the industry grows, you can expect more to come in. There are already rumblings in countries like the USA and the UK and, if you are going down this route, it will pay to keep an eye on the legislation. Much of this is prompted by the notion that personal data is being sold off, which is not true.

The future could well see most businesses including data mining in their normal, everyday operating processes and selling it through brokers. It’s certainly something that SMEs need to look at more seriously from now on.