Here's What You Need to Know About the Gig Economy
It seems to be in the news a lot lately. I hear strangers talking about it as I’m working in the local Starbucks. The commercials are plentiful on every media platform. It’s been around for a long time but in the past few years received a new, catchy name. The gig economy is growing and breaking records around the world while providing flexible scheduling for all who care to join in.
Whatis.com defines the gig economy as a “free market system in which temporary positions are common and organizations contract with independent workers for short term engagements”. It’s a growing workforce comprised of freelancers calling the shots for themselves. Instead of the traditional full-time job, “giggers” enjoy making money with a side-hustle or even earning a full time income from various short term engagements.
Known by other names such as the sharing economy, on-demand economy and the platform economy, the gig economy began with the advent of Craigslist in 1996. Craigslist consisted of a global platform offering employment listings as well a place for individuals to post for desired positions. Employer and contractor connections commenced. As the internet exploded with advancing technology, the proliferation of apps supercharged this employment option. Connecting with potential employers has become much easier to navigate with an efficiency never seen before.
You may wonder where the term “gig” came from. I certainly did. The term “gig” is a word we usually associate with musicians. A musician’s “gig” is the specific time period set for their performance. Contracting with a gig employer involves completing a specific job or project in a specified time period. The worker is working from project to project.
The gig economy is growing each day and thriving. Upwork estimates nearly 56.7 million Americans did some type of free-lance work in 2018. Intuit conducted a study forecasting that by 2020, 40% of all Americans will be independent contractors. The biggest prediction I found frequently touted was that 60% of the U.S. workforce will be part of the gig economy by 2027. As each new app competes with currently existing gig apps, it is easy to see why “gigging” is becoming an acceptable choice for today’s workers.
There are many reasons the gig economy is attractive to organizations. The digital age we live in has produced a workforce that is highly mobile. This flexibility allows workers to not only work from home but anywhere and in many cases from any country. Your physical presence at office doesn’t exist for many companies. Organizations also began to feel societal pressures to produce more flexibility for workers. In some instances, generational pressure from the X and Y generations forced companies to improve work-life balance through offering gig work. The younger workforce is more accustomed to changing jobs frequently unlike our fathers who stayed at one position all their lives or at least for many years.
The “bottom line” is essential for a company to consider and the gig economy helps stream-line their financials. Company time and financial resources aren’t spent on fully training a “gigger” as they would with full-time employees. Many organizations have prolonged probationary training periods as well as residencies that can take precious time and resources to fully train an employee to specific job standards as well as integrate them into the company’s culture. There isn’t a need for office space to house these employees, work equipment to issue and no need to worry about a benefit package. Freelancer’s have specific, defined skills. They are qualified specialists in their fields. Organizations end up saving money by having the ability to hire the very best workers from around the world for projects they want completed. Once the independent contractor has completed the project, they simply move on to the next gig be it with that company or a new one.
Numerous reasons exist as to why “gigging” would be an option to consider. Flexibility is the number one advantage to this type of work. Wrapping your life around work is far more pleasurable than having work wrap around and smother your life! Now that morning yoga class is a definite possibility. Being your own boss is highly attractive to some people and this is a perfect way to achieve this goal. Most people start gig work to make a little extra money. Senior citizens can supplement their retirement income by taking a temporary job here and there. Gig work allows a new Mom to stay home with her children and on and on. The possible reasons to gig are endless. As long as you can work independently with minimal guidance you are good to go.
Nothing is ever perfect and this employment option has downfalls that have to be recognized. There are no traditional protections for a gig worker. There are no benefits, no paid time off or participating 401K plan. Your retirement plan is up to you to develop and implement. With a traditional job, the employer usually takes taxes from your paycheck. This is now the employees responsibility and if not handled in a timely fashion can result in a large tax bill when you may least expect it. Some gig jobs require that workers enter clients homes or personal spaces or the client may enter your personal space. Safety could be a concern and you are on your own. Sexual harassment could occur and there isn’t a Human Resources department to report it to. If work in your specified field doesn’t exist, then an inconsistent income presents itself. If you are not a self-motivated, organized worker who understands the need to hustle to stay employed, a gig job may not be for you.
In general, gig jobs don’t require your resume! What??!! Many gig companies see a huge volume of candidates and utilize automation to process them. Candidates usually apply online with basic information. After this initial vetting the company will seek additional information from the candidate if selected to proceed. In most cases this information is submitted online. Samples of your work are what the company is seeking rather than a resume’ filled with bullet points. Employers want to see what you’ve done and your potential usefulness for their business needs. It is therefore imperative to have your LinkedIn profile up to date and informative about past work you’ve completed. (There are very high level gig jobs that may require a brief interview.)
Any service anyone could ever need can be found on a gig app. Granted, Uber, Lyft, DoorDash, Rover, Taskrabbit and Takl first come to mind when we think of gig jobs. These are great choices to supplement income or make ends meet while transitioning to another full-time position. We all know some people who have hustled enough working these jobs to make a full-time job of it. At the upper end of the gig economy there are jobs with banking, management, private equity, finance, blockchain architecture, artificial intelligence and robotics. Graphite, formally, SpareHire is an example of gig work solving higher level business project needs for organizations. Here is a link to a wonderful article listing the 50 leading gig economy apps.
If you’ve been laid off, fired or have heard the murmurings in the break room of company consolidation, now may be the right time for you to explore a gig job. Hopefully transition spurns activity. A major life pivot point could be the result. During a career transition, you may have more time on your hands to really dig in and explore all of the possibilities. If you need an employment change for whatever reason, a side gig can help you investigate different jobs and perhaps land on what you really want to do.
Most people serve as a “generalists” in their full-time job. Companies want employees cross-trained to save on finances and relieve the work burden when other employees are off on vacation or leave of any kind. Gig work can help define an employee’s job niche, building their skills for a specific employment type over time. It’s possible to utilize present skill sets to get started and slowly, at your own pace move into the workspace you truly desire. As your skills advance, an entire new career can open up to you.
This is not your father’s workforce anymore. Thirty years in one job ending with a retirement party, pension and a gold watch are long gone. The gig economy is a huge part of a cultural shift in business and is not going anywhere. People now tend to change jobs several times throughout their working lives depending on what their personal lives call for. People want work flexibility and variety. There are many gig employment options available today. Why not explore the opportunities?
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