The gig economy is currently growing at about 15% every year; it is therefore transforming employment models into flexible freelance work. Employees have now turned to the internet to post their services to be hired for short-term or project-based employment. As much as conventional employment structures have their merits, such as employment security, this new model has its advantages for workers, employers, and the economy as a whole. This article will elaborate on this aspect, review the gig economy’s pros and cons, and discuss why the majority of workers are shifting towards this form of employment.
What is the Gig Economy?
The gig economy is a relatively new concept designed to reflect a modern form of work where employees get work through an online application and they are paid to do independent short-term tasks known as gigs. Under these structures, organizations employ freelancers for contract and short-term jobs and give them flexibility to choose how to operate.
Some of the categories of gig workers include temporarily hired workers, contract employees, project employees, and freelance employees. It is quite absurd to argue the difference between the gig economy vs freelance when talking about the gig economy since both are nearly alike in exercising flexibility and independence. Also, the advantages of the gig economy cover everyone involved, thus the rising popularity.
The Gig Economy Benefits
Below, we look at the benefits of the gig economy to workers, employees, and the economy:
1. To the Workers
- Flexible Working Hours
Flexibility is one of the advantages of the gig economy that workers enjoy in this new working model. Employees can choose the time that they want to work, the rate at which they wish to work, and where they wish to work. The flexibility allows other advantages, such as leisure time, time with their families, and time to do other things.
- Endless Earning Opportunities
Thanks to jobs being offered in the online space with no need to physically go into an office, the possibilities are vast. A worker just requires an Internet connection on his device, and they will be able to search for jobs that meet their qualifications. It is also flexible in terms of income generation, as you can work on as many projects or tasks as you can.
- Independence
By having decision-making powers over their work schedule and what specific project to work on, the worker can steer their career. It means that you are responsible for your own development process and, therefore, can select whatever you like.
- Skill Development
In the gig economy, there is ongoing learning as the workers are free to bid for work in different industries. One gets the exposure required for career and self-development as there are no restrictions on what one can do. The flexibility also frees up time to train for new skills.
2. To the Employers
- Cost-effective
CEOs are constantly on the lookout for opportunities to reduce expenses in order to protect their profits. The concept of freelancing helps these organizations save on operating expenses since they do not have to provide workspace or corporate training to workers. This model also removes the expense of providing benefits because the hires are temporary workers.
- Easy Access to Top Talent
The gig economy offers a large talent pool in the global workforce at relatively cheaper rates. This way, employers can get their desired employees without having to dig into their pockets so deeply. Since contractors establish their charges, companies can search for a contractor with a low charge and then contract him with an hourly payment.
- Ability to Hire on a Need Basis
The other advantage for companies in the gig economy is that they can hire workers in the short term. That enables them to expand or contract in size as the need arises. They can also hire for a given project and dismiss employees as soon as the project is complete.
3. To the Economy
- More Revenue
The gig economy market continues to expand and delivers more value and profitability for employers and employees. Most importantly, there is plenty of money floating around, and obviously, the job market is virtually limitless. Today, the gig economy is one of the biggest economic drivers, as many people are embracing employment independence.
- Increased Innovation
The nature of the companies involved in the gig economy involves the freedom that motivates people to follow or pursue their interests, and this, in return, fosters innovation. Along with that, entrepreneurship cultures result in the emergence of new models, services, and, at times, products in the market.
- Job Creation
The unemployment levels are lowered since, in the gig economy, workers can now use their skills in different markets to secure employment. The gig economy also creates a means of earning for those who would not qualify to join the main employment market, such as the elderly and those in underdeveloped regions.
Conclusion
The gig economy has remained one of the biggest and most evolving parts of the world economy, and it is estimated to generate around $204 billion in gross value. This model of work is beneficial and opens numerous opportunities and flexibility for most workers; however, it also has several drawbacks, such as earnings volatility, absence of benefits, and sureness of employment. As gig economy growth progresses, there is a need for policymakers, organizations, and employees to embrace relevant legal provisions so as to achieve fair treatment of workers.
