16 Entrepreneurs Discuss The Impact of The Gig Economy
The gig economy is on the rise and with it comes great flexibility that more entrepreneurs are opting for it every day.
We asked entrepreneurs the impact this had and here are the insightful responses.
#1-Normalization of freelancing
The gig economy that has become increasingly normal because of the pandemic has resulted in a number of important realizations for both employers and employees alike. Employers now realize they can save money on payroll by employing freelancers on certain jobs whom they pay only for actual work rendered, instead of employing full-time employees who may have downtimes or idle times. Employees, on the other hand, have realized, they can make more money and have more control over their time freelancing for several different employers. Though this may not be applicable to all businesses, the number of companies that are now taking advantage of this trend is increasing significantly.
Thanks to Phillip Lew, C9 Staff!
#2- Two impacts
The gig economy is representative of two trends: First, it's the acknowledgement that people are always looking for ways to either make a little more money or do something that they love. Second, it showcases how many workers would rather have their flexibility back and make decisions concerning their time in terms of degrees of convenience. The gig economy doesn't seem to be going away anytime soon. In fact, what this trend means is never before has the personal choice been more important. A person's skills shape their situation more than ever! It means people can all live out their dreams just by embracing this new trend! If someone is not happy with their job or career they have a tangible means by which to change that starting today.
Thanks to Noah James, Liberty Lawn Maintenance!
#3- Causing exhaustion and flexibility
The gig economy is a direct result of hustle culture. Some hold multiple jobs due to an insatiable work ethic. Others are forced to work multiple jobs to support spouses, friends, or family members. The gig economy is exhausting all of us, forcing us to work 12-13 hour days in order to survive. It's also proving that people are multi-talented, and can switch on/off from their regular 9-5 to these side hustles.
Thanks to Ben Thompson, Hardwood Bargains!
#4- It's the economy
It already happened but is not well understood. Of course, all kinds of jobs and employment arrangements will continue to exist, but the gig economy is a take-back of freedom of family, friends, and life. It's a rejection of commute times, pointless habitation of cubicles, and overpriced office space in cities. The economic impact, though underappreciated, will be profound regulation, taxation, and health insurance need to catch up. In the short term, forms of cooperatives and DAO's are likely to step in and fill the gaps. In this economy, reputation is everything. Mind it well.
Thanks to Kent Langley
#5- Brand awareness and outreach have increased
If companies can hire temporary employees in countries where they want to grow, the gig economy may help them enhance their brand recognition. Some businesses may be able to set up a skeleton staff to satisfy regulatory obligations.Brands may sell and earn money in these new areas with little operational expenditure but substantial brand marketing activities.
Thanks to Derek Warburton, Mr Warburton Magazine!
#6- Improved customer service
The non-location bound gig economy definition may be used by businesses that have a worldwide customer base. They may employ people in various time zones to respond to customer needs as they emerge. This is an ideal answer to the never-ending night shifts that have a negative effect on the health of customer-facing employees. It may also be feasible to reach out to underserved populations such as pensioners with strong networks who don't wish to work full-time. They bring their extensive knowledge of customer psychology to the table while being cost-effective.
Thanks to Jennifer Foster, Authority Astrology!
#7- Reducing hierarchical silos
Many hierarchical companies' silos are reduced when freelancers interact across teams. This may help them become more adaptable and capable of weathering major challenges such as market competition and recessions. Gig workers bring new ideas to the table, and companies may benefit from the knowledge transfer to permanent employees. Some of the world's largest software and pharmaceutical companies have reimagined the gig economy by organizing crowdsourcing events to address real-world issues. Hackathons provide access to a large pool of highly motivated global talent. This is another fantastic option for companies to explore, particularly if they thrive on innovation.
Thanks to Jar Kuznecov, Water Softeners Hub!
#8- Access to a large and diverse pool of talent
You'll have access to a large and diverse pool of talent from across the world. Companies with access to a large global pool of freelance employees profit from being able to complete work effectively in distant locations. For short-term tasks, they may also employ competent contractual labor. Many professional copywriters work from the comfort of their own homes for clients all around the globe. Workers may perform low-intensity employment while upskilling for more rewarding work, which is one advantage of the gig economy. Freelancers may be able to devote more time and effort to skill development than full-time workers.
Thanks to Richard Mews, Sell With Richard!
#9- More free time and skills
The gig economy has opened many doors for small inline entrepreneurs like myself to source and contract for positions of need that fit a certain niche, which would be difficult to hire out full time in a more traditional business setting. Gig workers like graphic designers, IT professionals or web designers are all abundant in the gig economy and can be contracted on a per-job basis. This not only frees up time, but also puts skilled
professionals at the fingertips of smaller business owners who may not have had access to this pool of labor before the rise of the gig economy.
Thanks to Marty Kelly, Actively Outdoor!
#10- Stress and anxiety on entrepreneurs
Due to the gig economy, entrepreneurs and business owners are hired as independent contractors that are working between short-term contracts and freelance work. As a result, these entrepreneurs and business owners are constantly competing with others and hustling for their next gigs. The gig economy can negatively impact entrepreneurs and business owners by causing stress and anxiety for them and a feeling of instability, due to the lack of having permanent jobs. This type of economy also requires entrepreneurs and business owners to be flexible to accommodate the last-minute scheduling of new gigs. As independent contractors, they must also keep detailed and rigorous accounting records of each gig for yearly tax purposes.
Thanks to Stacy Henderson, ForZilch!
#11- Continuity adjustments
The gig economy has caused businesses to reassess and adjust knowledge transfer processes. Since gig workers aren't in it for the long haul, there's this constant turnover from gig worker to gig worker. Along the way, some information or insight gets lost in translation to the point where past workers have to be contacted to clarify certain aspects of the job.
Thanks to Wayne Connors, ACCL!
#12- Less vertical and horizontal movement
With gig workers, there's no demand for vertical movement since they are responsible and in control of their own career growth. Gig workers are also mostly specialists and since they won't be working long term, there's no incentive for horizontal movement either. This takes care of the disadvantage of limited growth opportunities for small businesses. With the gig economy, as long as the pay is right, their offer is as good as everyone else's.
Thanks to Chris Von Wilpert, Content Mavericks!
#13- Improving accessibility to work
There are many traditional barriers to work that the gig economy erases for the people who need it most, like low-income students, stay-at-home parents, and more. By finding gigs that work for them with more flexible hours, gig workers can earn money despite their current schedule obligations. Working on your own terms gives you time to focus on other pursuits or obligations, meaning the groups of people in our population that have been historically lost out on income or job opportunities, like single mothers. The impact of these changes is not just on the individual; generationally, they'll see an impact, as their money earned helps improve their children’s and grandchildren’s lives, too.
Thanks to David Aylor, David Aylor Law Offices!
#14- A mix of pros and cons
Gig work provides a mix of pros and cons for both the contract employee and the employer. Hiring gig workers for some positions within a company can help lower overhead expenses as gig workers do not typically receive benefit packages, unemployment insurance, severance pay, and don't require costly onboarding training. Hiring gig workers also means that companies may have an increased chance of surviving recessions, as it's less costly to end gig worker contracts than to let go of salaried employees. From the gig worker perspective, it's definitely not ideal to be without benefits, UI, and severance pay, but the pros can outweigh this, especially if gig work is a side job. The pros of gig work for the contract worker include increased flexibility with work hours, ability to gain experience in a new career without the necessary degree, and access to high paying remote work no matter your location.
Thanks to Jessica Zhao, Spacewhite!
#15- Advancement of businesses
Based on my experience as a marketing manager who has outsourced tasks to freelance top talent, I think the gig economy is now contributing to the advancement of businesses. With the COVID-19 pandemic now affecting the manpower of some companies, gig workers are now filling in the gaps with their skills and talent.
Thanks to Maya Levi, ReturnGO!
#16- Reducing unemployment
Major gig economy platforms include services like Airbnb, renting out a room can count as a gig as well. Professional freelance services on Upwork and Fiverr also come under the category of a certified gig. This can serve as a safety net in these struggling times where people are out of jobs or their offices are closed due to the financial crisis. Another major impact the gig economy has is helping to reduce credit card debt. That is because gig offering companies have their own set system of payments and you do not have to rely on credit card debt to get you through the month. The best example of this is Uber, people who have their own cars can work gigs with Uber. This has considerably reduced unemployment in cities where the service is being offered and people have had to take on less credit card debt. The safety net here being that services like Uber are flexible in letting people work at their own pace and will.
Thanks to Vicky Cano, Mealfan.com!