If you’re unsure of what the term gig economy means and how it relates to the future of business and employment, ShiftPixy has some tips to help to gain a basic understanding of the term gig economy. A term which will only increase in popularity in the coming years.
What is the gig economy?
The term gig economy refers to an economy in which a significant proportion of workers opt to obtain short-term jobs and contracts over permanent positions. While in the past, the majority of workers may have been employed in long-term positions at a single company, in two years it’s expected that 40% of the workforce will opt for short-term gigs, over long-term positions.
Why is the gig economy a growing economy from stregnth to strength ?
1. The gig economy offers a myriad of benefits for businesses
There are a wide variety of benefits for businesses who choose to hire independent contractors for short term contracts. As an example, if businesses choose to hire independent contractors they’ll significantly decrease their operating costs as they won’t have to pay for workers medical insurance or sick leave.
As another benefit, businesses won’t have to provide as large an office space for their employees, if they hire a mix of traditional salaried employees and independent contractors.
2. The gig economy offers a wide variety of benefits for independent contractors
If you assumed that a gig economy only benefits employees think again as there are a wide array of benefits of becoming an independent contractor or a gig worker.
As an example, if you work as a gig worker you’ll be able to pick and choose your contracts and will be able to turn down contracts which don’t compensate you enough for your time. As a gig worker, you should also find that you’re able to maintain a far healthier work-life balance than if you chose to work a traditional 9 to 5 job.
As a gig worker, you may also choose to diversify the range of services which you offer. Some independent contractors actually choose to pursue two or more career paths at the same time. As an example, an individual with accounting skills may pursue accounting gigs during the day and may freelance as an event photographer at weddings and balls, in the evenings. So if you’re looking for more variety in your working day, it’s well worth considering becoming a gig worker.
3. Some individuals may pursue short-term gigs or contracts as a side hustle
Contrary to popular belief, short-term gigs aren’t created solely for individuals who aren’t interested in signing a permanent contract. Many individuals who maintain full-time positions with a business, pursue short-term gigs as a side hustle, in order to supplement their main source of income. As an example, an individual who works at a marketing company may choose to freelance as a college tutor in the evenings.
In conclusion, while the term gig economy may be a new term, you can expect short-term gig style jobs to become increasingly popular in the next two years. As a gig economy offers a wide variety of benefits for businesses and gig workers as well as the economy as a whole.