The Gig Economy is Here to Stay: What it Means for Businesses.
The Covid-19 pandemic has made people realize how they can work from the comfort of their home and spend more time with their families. This realization for the more important things in life led to the mass resignation after the companies started calling their employees back to the office.
The main complaints that people in the workforce have is the lack of freedom to work, the inability to spend more time with family, etc. Therefore, the gig economy is seeing a rise in many countries. While it has been around for quite some time, people choose to work as freelancers due to the exceptional benefits that come with the job.
Let’s discuss what the gig economy is and why so many people are giving it a preference over traditional jobs. We will also dive into its impact on the job market and HR managers’ being able to embrace change.
What is a Gig Economy?
The gig economy refers to the free market system where the job positions only exist for a short period. Independent workers that join the company in a pay-as-you-work capacity dominate the gig work economy. Various apps, such as Fiverr, Upwork, etc., can help people connect with their prospects:
- Independent contractors
- Project-based workers
- Temporary or part-time workers
While the gig economy has existed for quite some time, it has only seen a significant rise in the past few years. The sudden surge in the popularity of the gig economy is due to various reasons, such as:
- Advancements in technology
- Changing lifestyles
- COVID-19 pandemic
- Freedom to work remotely
- Increased outsourcing by companies
The gig economy gives workers the freedom to work from any part of the world. We can expect its popularity to increase in the future as more and more people understand the benefits its offers. Businesses must also realize this change and adapt to hire the best talent.
Who Are The People in the Gig Economy?
Other than that, most people who are dominating the gig economy are employees who are working for an additional source of income. The gig economy extends to a variety of industries. You will find gig jobs in every industry, such as:
- Content writers in the marketing industry
- Drivers in the transportation industry
- Musicians and composers in the music industry
- QA Analysts, developers, etc., in the IT industry
These are examples of how you can leverage your skills and find work in the gig economy. The rapid digitalization makes it easy for employees in the gig economy to find jobs. They can connect with prospects through various mobile apps or social media platforms.
Perks that Gig Economy Offers to Workers
Due to the pandemic, companies had to enforce a work-from-home policy for their workforce. That is where many realized the exceptional perks that the gig economy offers. Some of these perks include:
The main reason many people choose the gig economy is that it allows them to maintain a balance between their personal and work life. While remote working will allow you to work from anywhere you want, you still have to report to your manager or work during a particular time frame.
That is not the case with the gig economy since it allows you to choose your hours and create a relationship with clients without anyone in the middle. You can work independently, allowing you to spend more time with your family and friends.
A traditional job only offers a fixed salary at the end of the month. While some jobs are commission-based or provide overtime pay, most employees get a specific amount. But entering the gig economy allows them to increase their income.
They can work extra hours and earn more money. And we can expect the gig economy to make it easy for people to earn money. Additionally, it allows people with jobs to increase their income. They can work as a part-time employee or find work as a freelancer to earn more money
Workplace stress can put a severe burden on a person’s health. Over time, the load can significantly affect the person’s physical and mental health. On the other hand, employees in the gig economy are often more relaxed since they can take breaks, meet with friends, and have more time for other activities that can help reduce their stress.
Since people with less stress tend to stay healthier for much longer, they will take fewer days off from work. They can be much more productive than people working in an office, and can work more efficiently.
Opportunity to Learn New Skills
The gig economy offers plenty of lucrative opportunities in different industries. With the relevant skills, you can benefit from them and earn more money. Also, you can provide two services simultaneously to get a much better revenue stream.
For instance, a marketing specialist can learn how to use Envato
to become a graphic designer. With the help of their training, they can provide an all-in-one solution to clients. You can find out the most in-demand skills and learn them.
Perks that Gig Economy Offers to Businesses
The gig economy offers many benefits to small and medium sized businesses, allowing them to grow bigger. These benefits allow them to earn higher profits by lowering their business expenses. Some of these benefits include:
As mentioned earlier, businesses can save money by lowering their profits through the gig economy. Employers will only have to pay their gig worker for the project and won’t have to pay for healthcare or other costs. They also won’t need ample office space to cater to additional employees.
Access to a Larger Pool of Talent
Since you can hire employees anywhere in the world, you can get access to a global pool of talent. Businesses might find it challenging to fill a vacancy since the area they operate in might not have people with relevant skills and experience. But with the gig economy, they can hire without worrying about geographical barriers.
Sometimes the business might only need an expert for a small project, and hiring them full-time can be expensive. However, the gig economy allows companies to benefit from their expertise, without having to bring them in as a full-time employee.
How Can HR Managers Adapt to the New Model?
With the gig economy becoming a top pick for many people, HR managers are wondering how to adapt to this new model. The gig economy is changing how managers hire and manage their workforce. Nevertheless, it is vital to understand these changes and leverage them to attract top talent.
One thing that many managers should keep in mind is that remote work offers more flexibility. The traditional desk job does not give employees the same level of freedom, and they would want to find work or jobs that provide better flexibility. Therefore, managers should offer more roles with flexible timings or allow employees to choose between an office or a home workspace.
Besides that, the managers should also change to project-based work to streamline the processes. It will help the workers and managers since they will know how many resources they need for this project. Managers can hire professionals as per the project’s requirements.
The gig economy is only expected to grow as a generation of employees start to enter it. Businesses must adapt to the changing traditions to hire and retain top talent. A vital point to note is that millennials make up a significant portion of the labor force.
They are now focusing more on flexibility, remote working solutions, and reducing work burden when choosing their job. So, if you want to hire the best people with relevant skills for your company, you the gig economy is just what you need.