What You Need To Know About Gig Economy

The growing popularity of freelancing and outsourcing has caused a recent shift towards a term more recently coined as “gig economy”. Gig economy refers to the work environment associated with short-term “gigs” rather than full-time employment. There are several theories as to why this shift has occurred–the main reason being technological advancements and the increase in their utilization.

Why Gig Economy is Growing

Digitization popularity amongst the millennial generation–the generation that is taking over much of today’s workforce–has sparked a reality in which people no longer stick to one single career path. Today, the average individual “[will hold] an average of 11.7 jobs from ages 18 to 48” according to the Bureau of Labor Statistics. This shift is partly responsible for the trend towards gig economy. Much of today’s workforce is open to pursuing non-traditional career paths, that often include these so-called “side gigs”, freelancing, or contract work, where previous generations were not.

Further, the increase in engagement through media and digitation, along with the ease of technology, is more accommodating for freelancers. Individuals can work from wherever they would like, rather than being confined to a traditional office space. Similarly, employers no longer need someone physically in the office to take on tasks and projects. Instead, they now have the flexibility to hire virtually anyone who has a computer and access to the internet.

The Benefits of a Gig Economy

In a recent article, Forbes explains that 66% of larger companies hire freelancers in order to lower labor costs and cut budgets. Temporarily hiring an expert in a specialized field has been found to be more cost-effective than fronting the steep price of a full-time employee with those skill sets.

In addition, as mentioned previously, people no longer need to be physically present in an office to be “working” due to today’s technology. This gives companies the freedom to hire an individual who may not be living where their office is located, but are a better fit for their company’s needs. This gig worker would, in turn, be able to avoid the hassle of relocation and work from wherever they would like. It’s easy to see the appeal of the lifestyle cultivated by a gig economy.

Moreover, studies have shown that utilizing freelancers can speed up the process of receiving needed services or goods. Freelancers are able to choose what projects they’d like to work on and which work best with their schedule. This allows them to undertake assignments they know they have the time for and have interest in, resulting in quicker turnarounds and higher-quality results. Further, hiring a freelancer results in an employee that tends to be more creative, thorough, and responsive. Read more about this phenomenon in a recent article we wrote on the benefits of hiring a freelancer. 

Best Practices for Gig Econ

With gig economy’s continuous growth, why not leverage its benefits? W Blog lists a series of ways to take advantage of the changes taking place in the traditional workplace which includes tips like finding your niche and managing finances. Other suggested actions from TechRepublic strongly advise looking into web development, as roles in that field have been dominating the online labor market as of recent.

We advise taking time to research outsourcing, the options that are out there, and how they can be of value to you. For example, at ConceptDrop we strive to alleviate the uneasiness that may come with simply getting started. There’s no need to stress about finding a freelancing that meets your needs, drafting contracts, payment, and so on. Whether you’re outsourcing for the first time or have before, our advanced matching technology relieves any stresses that may arise by seamlessly pairing you with a freelancer for all your design and copywriting needs.

Now it’s your turn to give gig economy a try, whether it’s finding your strengths as a freelancer or reaching out as a company for an outsider’s expertise.

Interested in learning more about how businesses are taking advantage of gig economy? See how companies are leveraging an outsiders expertise in our latest case studies.

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