The gig economy is everywhere. Its influence has gone well past the business landscape, now bleeding into the modern world as a whole. It’s only gotten bigger and bigger as the world’s been so quickly evolved, that it’s a little hard to keep up with it at times. With an importance placed on flexibility and worker independence, the gig economy represents a fundamental shift in how we perceive employment.
In this article, we intend to properly dive into the gig economy, exploring the what, how and when it can be especially beneficial. Join us as we unravel the thread that is the gig economy, putting it under the microscope so we can properly harness it for success, which will prove especially useful if you’re a business owner.
What is the Gig Economy?
So, what is the gig economy? The gig economy naturally revolves around gigs: a workforce of people who engage in freelance work. This freelance work can consist of on-demand work, services, or goods. Many forms of work nowadays will find themselves reliant on gig workers, with some recognizable examples including ridesharing (e.g., Uber), and food/package delivery (e.g., courier services such as Doordash, Lalamove). Corporations hire gig workers for short-term commitments or specific tasks (or, gigs) as opposed to permanent jobs, then pay them per gig completed. This means that gig workers typically aren’t employees, but rather independent contractors, giving them flexibility on when and where they can work at any given time. Apart from ridesharing and delivery services, a lot of ‘gigs’ can be found in different online platforms such as Upwork, Fiverr, etc., which connects gig workers with clients simply and efficiently.
What’s the difference between freelancers and gig workers?
Both terms are thrown around a lot, but they are more or less interchangeable. Freelancers, as their name might suggest, are almost completely free and self-reliant. They set their schedules, negotiate payments and rates, and build their independent business on their own. Gig workers often rely heavily on platforms to find opportunities. They are tied to these platforms, leveraging them to secure gigs on a transient basis. They operate on a gig-by-gig basis, where opportunities come and go based on demand and platform availability. Both are ultimately one and the same, so there’s no need to get tripped up when both inevitably show up in a conversation.
The rise of gig workers
The gig economy has experienced significant growth, particularly accelerated by the COVID-19 pandemic. The increasing preference for online transactions and services has fueled this expansion. Services such as Lalamove and Grab have gained substantial popularity, reflecting the broader trend towards flexible, on-demand work.
How can the Gig Economy work for you
Gig workers are typically hired for specific projects or tasks as opposed to hiring full-time employees. So, the first question you have to ask yourself if you want to leverage the gig economy to your advantage is “What do I need help with?”. It’s a straightforward but undoubtedly crucial question.
1. Properly identify the tasks that need to be done so that you can find the right specialist for the job. To paint some examples, hiring a graphic designer for content writing isn’t ideal, and outsourcing a data analyst when you’ve already hired one is far from practical. It’s important to contract by project. And now that the tasks have been properly identified, you can now get started properly.
2. Finding who to hire. There are quite many platforms dedicated to connecting gig workers with their clients, and connecting with one yourself is as simple as visiting said platforms and posting a job listing. In the Philippines, popular platforms include Upwork and Fiverr. Another way to look for freelancers and gig workers is through LinkedIn, where you can browse through listings or make one yourself.
[ PRO TIP: Freelancers often post on multiple platforms, so cross-referencing each one can prove helpful. ]
Each platform offers distinct advantages, so it’s beneficial to browse through several and assess how well they fit your specific needs.
3. Crafting job descriptions. Try to be as clear as possible, providing detailed explanations for your tasks or projects. Outline the scope of the job, any deadlines, and other requirements, and be as transparent as possible. This will naturally attract qualified people who understand your expectations and know how to meet them. And when the applications come in, thoroughly examine the profiles and proposals now given to you. Check for relevant skills, any previous experience, and past reviews and ratings. Ensure you’re hiring someone well-qualified to deliver quality work.
4. Maintain good communication with them. Any feedback you have is best delivered as soon as you can make it. Discuss your expectations and see if they can reasonably be met. Try to keep updated with them and on the project, answering any questions the worker might have. The platforms themselves typically have communication and messaging features built in, but it doesn’t hurt to save their contact info if necessary. Communicating payment upfront is part of this. Will you be paying based on milestones? By-the-hour? Are there fixed prices? Get it out of the way the first chance you get to avoid any misunderstandings.
Lastly, 5. Provide constructive feedback to the worker to help them improve their work for future projects. This helps not just the worker, but their future clients as well, as well as just being the polite thing to do.
Pros and Cons of Hiring a Gig Worker
The gig economy has a range of pros and cons to consider. One significant advantage, as emphasized throughout this article, is its inherent flexibility. Employers can hire talent from anywhere without concerns about proximity or traditional office hours. Plus, technology enables efficient remote work, often rivaling in-person interactions for effectiveness. The nature of the gig economy gives employers a more readily available way to access different kinds of talent, allowing them to properly find different specialists for whatever they might need help with. Moreover, the short-term nature of gigs reduces costs compared to hiring full-time employees. This also gives a good boost to scalability, with gig workers allowing employers to quickly ramp up production to meet demand if they ever need to. Of course, with its flexibility, the gig economy can also prove volatile. For employees, this means it could be harder to build up a good portfolio thanks to the gig economy supplying cheaper solutions, which also could mean lower wages in general. And the workers don’t have much stability or security to work with, with sick/vacation pay, health insurance, and other notable benefits being notably absent. And for employers, the quality of work will inherently be inconsistent, ever-changing from worker to worker on different platforms. The gig economy’s benefits can’t be understated, but it does undoubtedly have its costs, the most important ones being stability and predictability for workers and employers alike.
The importance of the gig economy in today’s environment is undeniable, and it only continues to stay relevant. It lets workers specialize in the specific needs employers need to fulfill. It dares to challenge the norms of traditional employment.The gig economy is still growing even today, and embracing this ever-evolving work model requires clear communication, effective management of relationships, and an understanding of the different talents that help it run. It is the present of the working world, and will no doubt be its future as well. Understanding and adapting to it remains crucial to navigate that future.
