Explaining what gig economy is:
You might be asking yourself, what is exactly meant by the term- “The Gig Economy”. The Gig economy is a phrase that’s being continuously used to explain the extensiveness of freelance or contract work contrary to permanent work. In opposition statements, it could be explained as the exploitation of workers with not much protection at their workplace.
The difference between the gig economy and permanent employment is that in the gig workers or self -employed people actually get paid for the gigs or any form of work that the actually complete. Examples of employment in this sector include Uber drivers, delivery people and people who sell goods such as food.
Workers in the gig economy only get paid when work is available, meaning that there are no extra costs made when there is no demand for work. However there is a disadvantage to it, gig economy workers are labelled as independent contractors meaning that they cannot get paid leaves or sick days and cannot expect redundant payments.
How the Gig economy affects employees
What the Gig economy is to employees is just a bigger horizon and more job opportunities. The market suggests that this is a better option for someone who has voluntarily chosen this form of employment rather than someone who was forced by a circumstance such as the sudden loss of a permanent job. This helps in justifying that being self- employment is not just a term to loosely respect saying that one is unemployed but rather a way to express flexibility, freedom and more options.
However some people might be hesitant to gig work because it requires more patience, less stability, more expenditure and inconsistent income. But these are said to be greatly debatable right now, with gig workers explaining the importance or need of flexibility within the work-space. For gig workers, the lack of flexibility is one of the draw backs from them getting into a space of permanent employment. With endless opportunity to freelance, these workers have the ability to take on any work that is suitable to their time and lifestyle. Gig work is also an opportunity for a person to put the foot in the door of their desired career. Whether qualified or not, someone can take their skills and interest and make into a consistent freelance career.
This has limited the lack of employment broadly as people do not have to wait to be employed by a company but can rather create employment for them. However as with everything there are certain risks and advantages. The business or app could not make much profit ending up in litigation and funding issues because of occurring costs and other expenses.
The current landscape of the gig economy
The Gig work has been quite fascinating to the normal work force as it has also introduced the importance of flexibility and scheduling within that work space. The current landscape of the gig economy is looking quite good as these independent contractors have the choice of determining how much profit they want to make a day by putting in the relevant hours.
It is said that merely half of the workforce are under independent contracting. And more millennials are getting interested in gig work rather than the traditional work as this is rather suiting to their attention span ability and lifestyle.
How the Rising Gig Economy Is Reshaping Businesses
There is no denying that the gig economy is doing the rounds right now. While there’s a definite need for self-employment and entrepreneurship around the world, there is surely a trend to it too. Technology is revolving and so are we and the way that our minds operate and that’s why the flexibility of gig work is rather necessary. Even the people who don’t see themselves under a workforce or in an office know the main goal for everyone is to be successful and make some money. Not everyone wants just to work and be successful, some want the ability to determine how they work, what kind of work it is that they do, a better life and more opportunities and options and that’s what the gig economy offers in a way that’s never been done before.
There will always be a need for freelancers. Entrepreneurs should understand that they will never be able to complete everything on their own to having a successful business. They will need to call in freelances every now and then so that’s why there is quite some longevity to the contract workers in the workforce. Many employers over the years are losing the control they had over the labour market as doing gig work is becoming more common, especially to the modern generation. There are many freelance jobs opportunities in many countries such as Kenya. (Follow the link and register for an opportunity to do freelance work in Nairobi, Kenya).
The law is quite different for employees, and those who are self- employed. These differences are important because employees have certain right as they are subjected to a occurring minimum wage and paid annual leave. Self -employed contractors do not have these rights or not many rights to go by.
Highlighting the pros and cons of gig working
• Gig workers are able to create more latitude in the type of work they do
• Creates more flexibility to your lifestyle and life generally
• Many more options and opportunities
• Unlimited earning potential
• Being selective with clients you want to work with
• Casual work attire
• Running every business aspect
• Not as much stability as being in permanent employment
• Inconsistent employment and cash flow
• Have to keep track of their own taxes
• Juggling multiple clients
• No one to back you up if you’re sick or injured
• No eligibility for unemployment
• Feeling unfocused and lacking structure.
It is estimated that by 2020 83% millennials will be joining the gig workforce. Statistics also prove that the gig economy will not stop but continue to grow over the years. The Gig expense allows people to be able to follow their passion, be able to find work and be able to pay their expenses. The gig economy also allows people to reflect on their lives while gaining personal freedom and venturing in a career they are passionate about. The Gig economy will also allow millennials to work while having the opportunity to give back to the community. It seems as if the Gig economy will only continue to grow and be in demand as the year’s progress. It is a great reflection to the collective landscape of employment as a whole.