What is the Gig Economy?

Freelancing has been around for decades. And millennials value flexible work and meaningful work purpose. The term “gig economy” refers to a general workforce environment in which short-term engagements are a commonplace. This is different from traditional employment where job tenure is more permanent than freelance arrangements or independent contracting assignments.

How Does It Work?

Individually, a gig (an individual task, assignment or job) represents a small portion of a worker’s income. Cumulative earnings may match fulltime employment. Increasingly, it operates on technology platforms, which many serve certain niches.

Clients pay independent contractors on an agreed rate for services rendered. Benefits like retirement, social security are all at the discretion of the independent party.

What are the Benefits?

Independent parties or freelancers have greater contracts over work schedules and engage in challenging projects. They may secure higher rewards than full time positions. So, flexibility and earnings are potential drivers for “giggies” (people involved in gigs, a new term introduced here).

For companies, it is cost savings as contributions need not be made for health insurance, social security or retirement funds.

Some studies suggest by 2020, 43% of U.S. workforce will consist of independent contractors.

Best Practices?

A few of the best practices for workers in a gig economy are:

(i) find your niche;

(ii) leverage technology platforms;

(iii) set own schedule;

(iv) manage finances; and

(v) treat every gig as an audition

The gig economy offers abundant opportunities for both freelancers and employers alike. Independent contractors are here to stay, thanks to technology, which gives “giggies” opportunity, freedom and flexibility they want.

Reference:

Angela Stringfellow, What is the Gig Economy?