What is the Gig Economy?
The Gig economy is the growing global rise in contractual, freelance, and flexible jobs replacing full-time traditional work. Uber and Airbnb ventures are key gig employers and have reasons to work as mainstream now.
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Companies such as Uber are trustworthy mediums between several part-time customers and workers. They establish rules, handle payments, and ensure work standards adhere to.
Many economists think the workforce by 2030 around 80% will be under this category. The pandemic brings a sea change in the businesses to handle the gig economy burgeoning, including the freelance marketing and journalism upswing.
Steps the Gig Economy Impacts businesses
1. Access to a Talent Pool
Companies carrying out work in remote conditions get the advantage of an extensive pool of globally working freelance workers. They get to hire skilled workers on contract even for short-term projects. Professional copywriters work for a worldwide clientele within the home comfort. The benefit is that freelancers in the freelancing market invest more energy and time in acquiring skills. They acquire skills more than full-time employees.
2. Access to Niche Skills
A sizable supply-demand mismatch is in areas such as design, IT, and marketing. It makes it hard for businesses to find full-time competent employees. Many acquire niche skills in respective domains due to projects and jobs requiring innovation. Even the agile workforce now uses the opportunities online that offer Google release certificates designed to meet the skill-curriculum gap in data analytics, project management, UX, and IT design. Companies are happy to hire workers with skills at less cost, and these skilled professionals take up the leads through freelancing to make a side income.
3. Better Client Service
A global pool of clients is the biggest benefit for businesses, and they take advantage of the gig economy non-location bound. They hire workers from different addresses and meet time zones acquiring a perfect solution. It is possible to tap into retirees, the forgotten demographics, with networks looking for full-time work. It brings online platform workers into understanding, and the vast experience of client psychology is cost-efficient.
4. Agile Workforce
A shift in modern business requires design thinking. A workforce relying on gigs reduces the travel-based need for on-site project supervision or client servicing. Any agile workforce as a team is easy to assemble if need arises and is cost-effective. Overhauling hiring and avoiding in-house full-time workforce is common, and freelancers as team work, as a replacement.
5. Improved Surviving Recessions
Using freelancers collaborating teams has made organizations more agile and they survive recession and market competition. The gig workers bring profit to businesses and innovation with their knowledge. The pharma and tech giants reinvented the gig economy by solving real problems. It is an excellent option to thrive on innovation.
6. Increased Outreach
The gig economy helps businesses promote brand awareness by employing from the freelancing market temporary workers. It is possible to meet legal requirements by establishing an appropriate workforce. With minimum spending, there is significant outreach in new locations where brands generate revenue.
7. Reduced Costs
Hire contract and part-time workers to reduce overhead expenses. It is cheaper to hire online platform workers than to spend on training permanent workforce teams. Gig workers are the choice of businesses helping in reducing costs, as there is no need for office space or infrastructure costs.
8. New Legislation
Considering the risks of relying on the gig workforce has a positive impact on business models. The gig employee’s numbers are increasing, and new legislation will enact to protect them. Businesses avoid taxpaying billions of dollars as they use the gig workforce. The new legislation wants the businesses to pay more taxes for benefiting through the Gig economy as they hire a freelance labor force.