So What Exactly Is The Gig Economy?

The gig economy in a sense, is a marketplace for temporary workers.

Typically, organizations contract with independent workers for short-term engagements in order to meet shifting market trends or scale quickly.  We often find the term “gig” associated with short-term projects or referring to musical engagements. Now we see “gig” referring to an entire type of workforce including: contractors, freelancers, independent contractors, subject matter experts, consultants, retirees, project-based workers and temporaries.

According to Deloitte Insights: by 2025, the gig economy could makeup at least 45% of all American workers. Numerous factors contribute to the spike in short-term “gigs”. One key factor would be our unprecedented access to mobile technology. Unlike any other time in history, workers now have the option of short-term engagements, that fit their busy lifestyles, at their fingertips. In some cases (Uber, Lyft, TaskRabbit) independent contractors don’t even have to interview. Moreover, with the advent and mass adoption of WiFi, workers are increasingly becoming fully remote, which alleviates location restrictions other out-of-state candidates would ordinarily face. This grants employers access to a much larger candidate pool.

In addition to the rapid growth of this new digital environment, other factors such as, financial constraints are leading to a more “on-demand” workforce. Forward-thinking Millennials have also left an indelible impact on our workforce.

As technology evolves, so do our workers.

Millennials now move from job to job in order to gain experience in the respective fields. This was once frowned upon and has now become the new norm for upward mobility.

Businesses can now avoid expending valuable resources in terms of benefits, office space and training more than ever because of the gig economy. Which in turn allows them to reallocate those resources towards highly skilled subject matter experts. In terms of the gig worker, the gig economy can improve quality of life as well as open up many more opportunities that wouldn’t ordinarily be there.

The gig economy is just one of many changing societal and business trends to help us evolve and engage in this new era. Talk with one of our gurus about how we can help you navigate the gig economy!