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 about the impact this had and here are the insightful responses.
#1- It allowed me to pursue my interests
As a freelancer and entrepreneur, the gig economy has allowed me to pursue my interests and get compensated for work I do on my own terms. I think that more employers are open to the idea of hiring freelancers, so there is simply more work available now than before. They are realizing the benefit of having highly specialized individuals available to them is a bonus, rather than being limited by salary budgets for positions that may or may not be justifiable long term.
Thanks to Sylvia Fountaine, Feasting at Home!
#2- It can largely be attributed to the great recession
The gig economy can largely be attributed to the Great Recession, followed by the global pandemic and the resulting Great Resignation. This was also a period of rapid digital transformation, meaning remote work was not only made possible in previously unimaginable circumstances but preferred for many workers. The impact of a workforce that has either chosen to go freelance or has been forced to adapt due to economic realities is that businesses can have agile teams that they can assemble as needed.
Thanks to Gates Little, altLINE Sobanco!
#3- Ability to have customer service available 24/7
For us, the impact has been our ability to have customer service available 24/7. This would be impossible without freelancers, as full-time employees across all time zones would be a logistical and financial nightmare. Being able to hire individual contractors for shorter periods across the time zones that need them most has given us the ability to better support our clients, and pay a fair wage to our contractors to boot. The gig economy isn't easy for freelancers, but the lack of stability is tempered by a lot of flexibility with hours, rates, and work/life balance.
Thanks to Volodymyr Shchegel, Clario!
#4- Pros & cons for both employers & employees
On the positive side, the gig economy can be seen as a way for employers to save on costs. They don't have to provide traditional benefits like healthcare or paid time off, and they can hire workers on an as-needed basis. On the other hand, the gig economy can also be seen as a way for employers to exploit workers. Because there is no guarantee of work, gig workers often have to take whatever jobs are available.
Thanks to Alex Gillard, nomad nature travel!
#5- It connects a global pool of talent
Up until a while ago, most of our professional connections were within the limits of our geographical location. It was more practical to work with employees for longer periods so companies could train them as required and put their skills to use. However, this belief has been slowly dissolving with the rise in technology and was positively shattered during the pandemic. This resulted in a stronger focus on the gig economy and allowed companies to explore their possibilities.
Thanks to Marc Roca, 4WD Life!
#6- The rise of digital communication
Entrepreneurs of the past may have adhered to traditional paradigms that included fixed and rigid schedules and inflexible processes but that is soon changing. As the years go by, we’ve witnessed 9 to 5 jobs losing their charm, and flexibility and independence coming to the forefront. The rise of digital communication gave freedom from traditional forms of work. These changes were accelerated by factors like recession & the pandemic & they revealed the advantages of freelancing or contract work.
Thanks to Chris Roth, Highline Wellness!
#7- It allows companies to take up complex projects
As an entrepreneur or a leader, one knows the limitations when it comes to taking on bigger, more complex projects. It can feel daunting to hire a set of employees solely to execute a one-time project. But with the gig economy on the rise, it becomes easier for employers to hire niche employees for shorter tenures. Such agile teams become more accessible and cost-effective for a business and make growth more accessible for the company. Furthermore, gig workers come with valuable expertise and innovative ideas.
Thanks to Igal Rubinshtein, Home Essentials Direct!
#8- It has increased the precariousness of employment
Look at the impact of the gig economy from the perspective of both employers and employees. For employers, it undoubtedly has been a major advantage. The fact that I now have access to an on-demand workforce that I can easily scale up and down as needed is great for agility. From the perspective of the employee, it has obvious pros and cons. It has meant an ability to ply skills remotely and increased job flexibility, but it also has clearly increased the precariousness of employment.
Thanks to Sam Shepler, Testimonial Hero!
#9- It has ushered in a whole new era of job opportunities
The steep rise of the gig economy has undoubtedly ushered in a whole new era of job opportunities and the contractor model that it affords has changed how quickly freelancers and transitioning workers can stay on their feet during times of personal financial crises. It has also ensured that they no longer have to commit to a job they don't want, thereby increasing the quality of that match between working professionals and their careers better than any other previous generation.
Thanks to Mila Garcia, iPaydayLoans!
#10- It has a big impact on the workforce
The gig economy is having a big impact on the workforce. It's giving people more flexibility and freedom to work on their own terms, which is great for those who want more control over their lives. But it's also creating a lot of uncertainty and instability, especially for those who rely on gigs to make a living. The gig economy is still in its early stages, so it's hard to say exactly how it will evolve over time. But there are definitely some concerns that need to be addressed, such as job security, benefits coverage, and fair wages.
Thanks to Farzad Rashidi, Respona!
#11- It has a great impact on small businesses
The gig economy has a great impact on small businesses that are looking to hire certain services temporarily. We’ve frequently hired gig workers to get a specific job done that our team doesn’t have the skills to do. The internet has given us access to a wide range of individuals with a wide range of skills. Not to mention high skill levels. It is extremely beneficial for businesses & can really help you to produce excellent results for your business even when you don’t have someone working for you full time.
Thanks to Sean Nguyen, Internet Advisors!
#12- It has the potential to have a significant qualitative impact
The gig economy's impact is more than just the increase in the number of people working in this manner. It also serves as an important test case for a novel method of labor management. Thus, while the quantitative influence of the gig economy may be minor, it has the potential to have a significant qualitative impact on how employment is organized in the future. Workers can do low-intensity tasks while upskilling for more gratifying work, which is one advantage of the gig economy.
Thanks to Jason Cordes, CocoLoan!
#13- Decoupling of jobs and locations
The gig economy is a rising trend that has contributed to a mobile workforce. Freelancers can take a job or project with an employer anywhere globally, & workers now seem to prefer freelancing over full-time employment. Thus, companies that can work efficiently in remote conditions benefit from access to an extensive global talent pool of efficient freelance workers. Small businesses are spending less money on training & can easily replace their workforce if needed.
Thanks to Sara Graves, USTitleLoans!
#14- It has become a more successful & high-paying platforms
In this world of uncertainty and pandemic, gigs have become more successful and high-paying platforms. Since gigging is a low-paying job than full-time employment, companies can get their work done & save money. Companies hire employees on a contract basis making them less reliable for company funds, health benefits, and other allowances. It makes the company save money, gain gross profits & increase the economy of the place. The rapid process of gigging can hugely benefit the financial prudence of the country.
Thanks to James Leonard, Cozy Seating!
#15- Workers with specialized skills are easier to come by
In fields like IT, design, and marketing, there is a significant demand-supply mismatch. This makes it difficult for companies to find qualified full-time personnel. Due to work and projects that need them to innovate, many freelancers develop niche expertise in these sectors. Google has launched Google Career Certificates to fill the skills gap in project management, data analytics, IT, and user experience design. These courses are taken by many professionals who then go on to work as freelancers.
Thanks to Daniel Carter, IVA Advice!
#16- Gig workers have the freedom to choose how they earn
The impact of the gig economy is mixed, although these side hustles and part-time jobs can be empowered by being very flexible and easy requiring low skills they can also be dehumanizing, very temporary, irregular, and offer no job security. Gig workers have the freedom to choose how they earn when they work, and how much time they spend on their own interests. There are many companies today like Google & Amazon that employ as many if not more gig workers as full-time workers with full benefits.
Thanks to Paige Arnof-Fenn, Mavens & Moguls!
#17- High costs in employee retention
Although the gig economy optimizes some business savings, it’s more expensive to attract and retain gig workers than traditional in-office workers. Since gig employees have multiple employers competing for their skills, they look for invigorating work and better pay, making it challenging to earn a freelancer’s loyalty. Also, considering that gig employees prefer working for shorter hours because of juggling multiple projects, if they leave with work commitments unfulfilled, it may cost more money for the next hire to fix.
Thanks to Stella Scott, EasyPaydayLoan!
#18- It refers to labor arrangements that are more analogous
The gig economy, as well as the future of labor, has sparked a lot of debate. In general, the gig economy refers to labor arrangements that are more analogous to gigs than traditional jobs. This is a play on the idea that work is becoming more like performing a music gig at a venue, with no certainty of continued employment but the freedom to pick where to go next. Both jobs currently have so-called standard employment contracts & roles that remain informal.
Thanks to Cindy Corpis, SearchPeopleFree.net!
#20- Significant flexibility for businesses at the potential expense
Gig economies allow significant flexibility for many businesses at the potential expense of long-lasting business relationships between employees, employers, and clients. Gig jobs are often temporary, short-term, or freelance without the same opportunities for growth within a company that other more traditional full-time positions might offer. As a result, companies may over-rely on contractual worker populations to fill holes in their organization without effectively retaining enough talent to keep business processes running smoothly.
Thanks to James Shalhoub, Finn!
#21- Talent and employers are both learning to work differently
I believe it’s the convergence of professional workers seeking consulting/project roles in pursuit of more flexibility and employers pivoting to a more project-oriented approach to getting work done. Talent and employers are both learning to work differently, and we will continue to see more professional workers take on consulting and project-based roles. The world of professional work has fundamentally changed with talent seeking control over the type of work they engage in and organizations dealing with rapidly changing skills needs.
Thanks to Kate Duchene, Financial Profiles!
#22- It is now a side income method for many freelancers
The gig economy refers to the workers who are dependent on contractual or online temporary jobs. This gig economy trend is now a side income method for many freelancers as it is an ever-growing way of earning money. To enter the gig economy you need to find and apply for many online job opportunities as this is not an easy task. Only if you're an expert in your field then you might have a chance of getting this job. But there are both positive and negative effects of the gig economy on a company owner.
Thanks to Christopher Sioco, Parachor Consulting!
#23- Gig workers can find more opportunities
The gig is a word for a job that lasts over a specific period and a person who works for these short time and temporary jobs is known as a gig worker or freelancer. Gig workers have lots of benefits like the flexibility of time, working from home in their comfort zone, & being their own boss. It has created better opportunities for people all over the world to access and find more work opportunities. Freelancers can choose when and where to work.
Thanks to Zarina Bahadur, 123 Baby Box!
#24- It has massively changed the way that businesses function
The gig economy has massively changed the way that businesses function. Businesses are able to take advantage of a thriving gig economy, cutting costs associated with full-time employees, such as payroll tax and regulatory costs, as well as having a more diverse workforce. Workers also benefit from the gig economy, being able to enter the workplace on ‘gigs’ or freelance roles in the workforce, due to low barriers to entry, and benefits like flexible working, and setting your own schedule. The very nature of employment has changed, as people always know gigging is an option.
Thanks to Matthew Osborn, Legionary!
#25- It is acting like a filler that lifts every sunken area
The gig economy is acting like a filler that lifts every sunken area. It's an easy way to remove any skill efficiently quickly and without investing too extensively. The biggest impact of the gig economy is on start-ups and small businesses. Such businesses aren't able to invest heavily in workforce building as investments are low and uncertainties are high. They fill the skill gap with the help of the gig economy and have the freedom to upscale and downsize without any worries. This makes a huge impact on their growth.
Thanks to Stella Cooper, PaydayLoansUK!
#26- Gig workers offer services with great flexibility
We think of the gig economy as an easy way to deal with the talent crunch, but its impact is beyond that. One indirect positive impact of the gig economy is on service delivery. Gig workers offer services with great flexibility. You can easily achieve your goal of serving your clients 24*7. You can hire local gig workers as per your clients' location. It makes a great difference when there is a cultural & language barrier. Local gig workers will break down this barrier & will make service delivery seamless.
Thanks to Maria Saenz, FastTitleLoans!
#27- It reduces the need for teamwork & human connection
I do think that the gig economy has helped a lot of businesses thrive in what has been a difficult time over the pandemic, but it has also lowered general team morale because these short-term employees don’t get to bond with the rest of their team much! Overall, it has its pros and cons – but the main impact is that it reduces the need for teamwork and human connection, which can be to the detriment of a business’ team spirit and efficiency.
Thanks to Anna Silver, CookForFolks!
#28- It reduced the struggle to make & build a skilled workforce
For me, the biggest impact of the gig economy is the reduced struggle that one had to make to build a skilled workforce that delivers maximum outcomes. Organizations spend tons of effort and investment in candidate hiring & training. All those efforts go in vain. This, when happening frequently, will lead to downfall eventually. With the gig economy, this possibility is reduced significantly as there are no hiring hassles. It works like a try-and-buy model. You can switch gig workers if you're not satisfied with the performance.
Thanks to Madilyn Hill, Truepersonfinder!
#29- It has changed employee expectations
The gig economy is driven by technology and was accelerated by the global pandemic. It has changed employee expectations, broadened talent pools, & expand opportunities for talented workers in remote locations with full connectivity. Companies are scrambling to adapt to the digital economy, and this has exacerbated an already tight talent pool for highly qualified tech workers. Just last week a Fortune 500 survey of CEOs indicates that they view the talent shortage to be the top threat to business in 2022.
Thanks to Andres Garzon, Jobsity!
#30- Business organizations have learned valuable lessons
In my opinion, business organizations have learned valuable lessons from covid-19 and are now taking advantage of the gig economy. As a business person, now I hire talented employees for temporary positions and get my work done by freelancers. It helps my organization in multiple ways. It allows me to decrease use financial burden on my company's budget, pick up the best talent for the speedy growth of my organization, maintain business efficiency, and increase the overall productivity.
Thanks to Ashley Amor, PeopleFindFast!