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In this modern and constantly-evolving business world, employment is no longer primarily about working full-time or 8 hours a day in an office setting. Businesses have seen the birth of the so-called gig economy and they are now witnessing and embracing its impact in their operations.

Gig economy can simply be defined as an employment system that allows businesses to hire independent or freelance workers for short-term engagement. This type of employment system is not just an emerging trend. It is expanding exponentially and is certainly changing the shape of the workforce worldwide. In fact, studies have shown that in the U.S. alone, the gig economy is expected to reach 43% by 2020. It is also now more common in Australia, New Zealand, and Southeast Asian countries, including the Philippines.

What factors contribute to the rapid growth of the gig economy? Let’s take a deeper look at what this thriving economy is.

Benefits

A lot of businesses are already part of the gig economy. This type of employment is beneficial as it allows you to work with independent skilled workers or experts to complete specific or specialized jobs and to meet seasonal demands. You can also save resources by hiring gig workers! According to research, 43% of companies that contract workers for short-term jobs save at least 20% in labor costs. You don’t need to pay for office space rent, are not required to offer work benefits, and others.

Gig economy also appeals to talented millennials, who are expected to account for 75% of the global workforce by 2025. Because this demographic prefers to work remotely and on their own schedule, they could be a great fit for companies looking to have gig workers on board.

Challenges

Although there’s big potential for growth, the gig economy also faces challenges. The marketplace is undeniably competitive that not all freelance or gig workers find it easy to land a job. If hired, it’s likely that they won’t receive benefits and fair pay.

As for companies, finding the best talents to work with on a freelance and short-term basis could also be challenging. The perfect gig worker for you might charge a higher rate than others. Too much flexibility could also be an issue. Thus, even though it’s only gig work, honesty and trust between you and your workers are important.

Role of Digitization

Digitization or technological advancement is one of the biggest reasons that the gig economy is booming. Based on studies, big data/analytics, mobile technologies, and cloud are the top technologies most businesses have already implemented.

By leveraging computer with internet connection and smartphone, clients or business owners and their gig workers can easily communicate with each other and work together regardless of location. There are also user-friendly apps and websites that you can use to organize and monitor projects, streamline the workflow, and increase productivity. Everyone can work on the go!

Gig Economy Jobs

Workers are now becoming more interested in joining the gig economy because of the flexible work hours, the ability to work anywhere, and the pay. According to statistics, more than 50% of gig workers started freelancing by choice and 77% of them agree that they either make the same amount of money or earn more than before.

All businesses, regardless of industry are now open to hiring gig workers. A Statista report revealed that in the U.S., 14% of gig workers are employed in the government or public sector, 10% are in the professional and business services, and 10% are in education and health services. From being an Airbnb host or Uber driver and doing graphic design, virtual reality, and bitcoin jobs to providing professional services as an accountant and occupational therapist, anybody can be really part of the gig economy.

Conclusion

Considering the benefits and despite the challenges, the gig economy continues to grow. Businesses recognize the importance of this system. And with the help of digitization, the gig economy can certainly be called the “future of work” worldwide.

Are you planning to hire gig workers? Our virtual assistants can be a great addition to your team. Contact us to find out how we can work together!

Pepper Virtual Assistants is a business solutions firm that specializes in virtual administrative and personal assistance, online marketing, customer support, and copywriting. We are known for reliability through our managed services, responsive client handling backed by extensive training, and rockstar virtual assistants hired for their skills and expertise.

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