What is the gig economy?

Deloitte refers to the gig economy as the alternative workforce. In a nutshell, it consists of people who seek flexibility when it comes to where and how they work. They assume their contracts to finish at a specific point in time or upon the realization of a certain milestone – oftentimes, they expect to work remotely or at least on a hybrid basis.

They work on a contract basis. They operate by the hour or the day. They are the (digital) freelancers of the world, the crowd workers, the independent contractors, the contingent workforce, those who are paid upon specific deliverables, those who are on-call, and those temporary workers secured through agencies, and more.

Based on the Bureau of Labor in the US, since 2020, more than 60% of organizations reported that they hired more gig workers compared to three years ago and the trend does not seem to slow down.

Why has it become a top priority?

For workers

The future of work can only be studied in tandem with all things millennials. In a recent survey conducted by Deloitte on millennials, it appears that this working group is more productive when they operate in a flexible environment.

Aside from the millennials, the workforce is increasingly looking to diversify their income streams. They are also dabbling in whatever tasks are of interest to them. Humans seek variety and the gig economy allows to add variety to the daily routine.

The contingent workforce could benefit from higher levels of satisfaction in multiple dimensions of work lives than those holding traditional jobs by choice, indicating that many people value the non-monetary aspects of working on their own terms.

For organizations

At an organizational level, the global pandemic allowed the verification of many hypotheses.

The alternative workforce provides organizations with access to expertise without the need to commit to exuberating operating costs.

A case in point for the gig economy is how it could benefit small and medium businesses that are particularly averse to their operating expenditures.

Across industries and geographies, organizations would face fewer risks by employing gig workers, they would reduce their cycle times, and they would surely access a greater pool of skillset.

McKinsey stated that by the end of this current year 26% of existing jobs will either partially change or completely fade away as the gig economy shatters many traditional systems.

Can it be that the gig economy is defining a new working class?

To learn more, stay tuned for upcoming articles within the same series. In the articles, the following questions will be answered:

–         What jobs are likely to continue to be transformed by the gig economy?

–         What are the disadvantages of the gig economy?

–         How to make the gig economy work (workers, organizations)?

–         How are gig workers integrated into the organizational culture?

–         What is the future of shared services amid the gig economy?