The Evolution of The Gig Economy

The world has opened the path into the gig economy, and today in the face of this emerging alternative, we must understand this new digital economy. Recently we have observed an increment in the sum of freelancers and self-governing contractors, this change might be due to the shifting economic conditions and a modification in generational drifts.

The world has changed, and nowadays, people are prioritizing flexibility and fulfillment at work, valuing it more than a salary. So, in this new work framework, the gig economy is becoming a more proficient, modern, and pioneering alternative.

Related: The Best Cities to Work as a Freelance

What is The Gig Economy?

The gig economy is an arrangement that allows corporations and businesses to hire freelancers and contract workers that supply goods and services. A significant amount of professionals are preferring to work under an hour agreement or to freelance their expertise as they pursue more freedom and autonomy. Moreover, this job independence mindset moves the work-life balance notion upside-down. People with this mindset prefer to schedule their work around their daily life rather than the other way around. We can say that the gig economy challenges the button-down economy of round-the-clock employees, who often concentrate on their professional growth. There are diverse positions that lie in the frame of a gig, for example, driving for Uber, food delivery services, independent consultants, fractional executives, or freelancers that work for projects hourly are some of the arrangements that are changing the entire working landscape. Although the gig economy might be unconvincing for those people who are used to a more conventional work setting, there is still a growing amount of workers that are supporting the resourcefulness of this working style, since it enables them to earn a satisfactory income with the freedom to manage their time. These innovative businesses bring accessibility and sought-after facilities, the perfect framework for the modern consumer and world.

What Impact Does It Have on The Future of Work?

The combined effect of the growing workforce, innovation, technology, and diverse job types has formed a setting for the gig economy to flourish. Businesses and companies are comprehending the operative and monetary benefits that come with these agreements, and so are the workers, who value some opportunities that they can´t find in the traditional workplace.

Related: A 9-5 Manager is Not the Only Solution, Try Hiring a Fractional Executive

These types of work agreements are changing the perception that many professionals have of nine to five jobs and the traditional work landscape. Powered by advanced technology, growing networks, and a nonrigid perspective, the gig economy is rising, stimulating new tendencies in the workplace strategy and alliance systems, thus changing the future (and present) of work.

The recent growth of the gig economy is also prompted by the increasing usage of various ground-breaking technology applications, which have also given rise to the collaborative economy. You may wonder what is the collaborative economy? It is an economic model that enables people to provide, purchase, retail, share or lease their goods and services using digital applications and marketplaces. These technologies open the door to a more connected and global economy that banishes the geographic frontiers. 

Advantages of The Gig Economy

No doubt that there is a wide range of advantages of the gig economy, benefiting both sides, businesses, and workers. For businesses, it is quite cost-effective as it minimizes expenses by employing workers on a contract basis for the hours and services needed. Furthermore, the gig economy offers a workforce that can match the business to the freelancer that best fits its needs. This minimizes the trouble of approaching and managing an interceder during the whole employment procedure, thus, making it more convenient to find individuals who can accomplish the demanded tasks.

Related: Starting as an Independent Advisor? You Should Understand These Terms

As for workforces who value flexibility more than their salary, the gig economy enables them to create their own calendars as it is not required for them to work in offices, instead, they can work remotely from wherever they want. This flexibility enables the workers to earn additional income, thus making the gig economy ever more attractive, especially since there is a wide variety of gigs to accomplish for workers. Rather than repetitive work to do every day, every gig has different requirements that make the work stimulating, challenging, and motivating, therefore, the workers end up more inspired and motivated.

Disadvantages of The Gig Economy

As much as the gig economy seems plausible there are also shortcomings and disadvantages. As gig workers can partake in various jobs at the same time, they may not be as invested in the business as full-time employees. Moreover, gig economy corporations usually do not encourage their workers through bonuses or other arrangements. Therefore, such a procedure can cause loyalty problems, decrease the probability of more work, and lessen the incentives. The sheer flexibility that the gig economy provides comes with a price. Being a gig worker or a freelancer is a tremendously self-governing job that can also create a sense of remoteness and inaccessibility. Additionally, the gig economy does not promise job security. 

Pros and Cons of This Economy for Talents

The increasing use of modern technology has empowered everyone to find new ways to make a living in a digital and globalized world where work is not limited to a geographic location. This new dynamic also opens the door for organizations that need to rapidly and effortlessly build a team of talents in a worldwide economy.

For the talents, especially the highly skilled ones, the gig economy might turn into significant growth in their professional path since they will be demanded to work on multiple projects at a time involving different skills and challenges. Beyond the exciting side, working as a professional on demand has its own set of challenges, for example, learning to sell yourself and your services, knowing how to make budgets and price your work, and understanding that the income is usually indefinite since it depends on the project. 

But still, we remain optimistic about the opportunities that the gig economy is opening, and we hope that as this dynamic grows, so will the alternatives and solutions for those challenges that talents must face. 

If you want to start your career as an independent professional on a fractional basis, contact us! We will be happy to help you join a great community of professionals on demand. 

More articles

Sign up to our
newsletter