In some cases, organizations within the gig economy are not required to cover personal expenses such as gas used while driving for DoorDash. Need assistance with a specific HR issue? Gig Economy: Analyzing the Pros and Cons - OnBlick Inc The ability to connect service providers with customers, automate scheduling and communication, optimize routing and integrate payment into a single platform now makes it easier than ever for SMEs to stay competitive, says Shawn Cadeau, CRO of Jobber, a business management and scheduling software for the service industry. What are the best gig economy jobs and apps? While there are quite a few pros to gig economy jobs, there are also downsides that make it difficult: Unfortunately, for most gig economy jobs, benefits arent part of the package. Gig Economy: Definition and Pros and Cons - ThoughtCo The event was led by Jen Curry, New York City Director of the Samaschool, and focused on the pros, cons, and opportunities of the gig economy. If you opt out, though, you may still receive generic advertising. Gallup says its data shows a tale of two gig economies. There are independent gig workers and then there are temporary or contingent workers. Find out how different WGU is about personalizing and supporting your education. Employers benefit from gig work by gaining access to skilled talent at a time when hiring full-time employees has become more challenging. What are the Pros and Cons of the "Gig" Economy? Here are some answers to common questions faced by workers who by choice or necessity find themselves working in the gig economy. , about the uberization of work, how the gig economy is affecting workers now, and their opinions on what needs to change for the future. Teaching, Mathematics Education (Secondary) M.A. Here's how your employees could potentially benefit from switching to a gig economy marketplace: 1. The benefits are enticing, which explains why the McKinsey research showed that roughly one in six people in traditional jobs would like to work independently. Your personalized solutions are waiting. Pros and Cons of the Gig Economy - Kaminsky & Associates All rights reserved. "[As an employer, you] need to make it clear to contractors that they are responsible for reporting the income they receive from you; this includes the value of any benefits you are providing.". More independence and freedom are some of the most commonly noted advantages of working the gig economy. But, Klimaszewski said, the risks are greater for organizations, which are far more likely than individual contractors to be audited. hbspt.cta.load(5261410, \'f7f5d00a-20e0-42ec-9348-301f1b8fab4a\', {"useNewLoader":"true","region":"na1"}); CultureWise is the turnkey operating system for culture. What are the Pros and Cons of the Gig Economy for Workers? Companies and gig workers both bear risk if something of value is received by gig workers, operating as contractors, but not reported by them or the companies they work with. There are a variety of pros to being a freelancer in the gig economy: Many freelance workers in the gig economy find that their status allows them great flexibility. From IRAs to 401ks, there are many options for how to save money for retirement. According to IE University , "It's predicted that by 2021, these gig jobs will actually outnumber traditional nine-to-five, office-based jobs. Because companies dont have to pay for benefits or the onboarding costs of a full-time, new employee, freelance workers often have a lower cost than other workers. Word gets around. If youre in-between jobs, you may consider enrolling in an online course to learn new skills, gain experience in a different field and keep up with changes in technology. Working in a gig economy, the pros and cons - The Washington Post Tell us what matters most to you, and well provide personalized content for every stage of life. You work when you want to work. This article explores the pros and cons of the gig economy, including the different types of work available and the benefits and challenges it presents to individuals, companies, and society as a whole. What are the pros and cons of the gig economy? Establish a checking account from which you pay all your monthly expenses. 1. You pay them per project or on an hourly basis for as long as you need them. I write about human skills. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Employers are already learning how to adapt to the new normal of managing remote full-time staff. Gig workers are typically available immediately on demand and the growing array of gig economy work platforms makes this even more so. A workplace run by AI is not a futuristic concept. Should I quit my full-time job to work my side gigs? If youre a kid going through college, if youre retired or if youre a single mum, youve never had it better, says Steven Power, the global president of Deputy (a schedulingsoftware and time clock app)and enthusiasticial entrepreneur, you can drive Uber, you can do TaskRabbit, you can work when and where you wantits a very flexible way of working. Working on your own terms, with your own hours and earning your own wage has been a dream since the inception of the office and office hours. An increasing number of people work primarily in gig economy rolesworking two or three jobs and still finding time to focus on their own pursuits. Cadeau states that this particular element of the gig economy has shifted nearly all risk away from employers and onto contract workers, leaving contractors that rely on getting work consistently with little in the way of bargaining power. Often they are able to charge hourly rates for their time. On the other side of the coin, here are some of the most noted downsides facing an employer when tapping the gig economy for talent. Pros of the Gig Economy Affordable Labor A full-time employee requires a salary and benefits. 415 E. Oak Avenue, Moorestown, NJ 08057877-472-5050 info@CultureWise.com, Copyright 2023 High Performing Culture, LLC, The Pros and Cons of the Growing Gig Workforce, Jon Younger sums up the benefits of hiring gig-workers, Intuits 2020 Report about the future of small business, The ability to set their own schedule with hours/days/seasons that suit their lives and needs, For remote freelancers, the choice of where to perform work and an expanded client reach, Choosing projects and clients best suited for their skills and temperament, Faster growth opportunities and more exposure, The ability to strategically match talent with specific short-term projects, The opportunity to hire experts for services not needed regularly, Agility in scaling a workforce to meet shifting market demand, Millennials represent roughly 25 percent of the alternative workforce, In addition to various blue-collar fields, doctors, therapists, lawyers, accountants, designers, technical professionals, consultants, educators, and writers have significant representation in the alternative work world, Gig work is almost equally divided between men and women, On average, the non-standard workforce is more educated than the overall workforce, Gig workers are more likely than traditional workers to live in an urban area, Freelancers earnings are similar to or above those of traditional workers (scaled to time spent working), Full-time independent workers are joined by flex-time freelancers, many of whom are retirees reentering the workforce, people caring for children and aging parents, and individuals going back to school, 33% of companies use alternative workers for IT, 25% for operations, 15% for marketing, and 15% for research and development, Only 8 percent of our respondents said that they had established processes to manage and develop alternative workforce sources, 54 percent of respondents said they either managed alternative workers inconsistently or had few or no processes for managing them at all. Online degrees from WGU have similar pros when it comes to flexibility and independence, which may appeal to those who want to end up working in a gig economy job. Working more flexibly on a job-by-job basis is touted by some as the ultimate in employment, and provides a lot of freedom for those that desire it. CultureWise clients regularly win the war for talent, improve accountability and productivity, keep remote and hybrid teams connected, and maintain strong, healthy cultures through times of rapid growth, acquisitions, and leadership transitions. They achieve this goal by intentionally shaping a culture that will make individuals and the organization successful. The gig economy is consistently growing each day, becoming one of the largest segments of businesses we interact with daily. Often freelance workers dont go into the office and miss on the social elements present there. The employment of the Gig economy staff will enable . Accelerated Information Technology Bachelor's and Master's Degree. A robust company culture is usually the result of careful planning by leadership. Special Education and Elementary Education (Dual Licensure) B.A. Many discovered they could earn a living this way and preferred working for themselves. Every degree program at WGU is tied to a high-growth, highly rewarding career path. Another way to put it is freelance or contract work. 6 Ways Technology Will Transform Your Market Research Jan 18, 2021,06:18am EST How Are Research Pioneers Shifting Mindsets And Pioneering New Consumer-Centric Capabilities In 2021? Hiring an on-demand worker eliminates the need for all that. Flexjobs, Upwork, Fiverr, and Freelancer are currently the largest and best-known of these platforms, but there are scores more. The key to managing money when your income goes up and down is establishing a baseline of how much money it takes to run your household. Reach out by visiting our Contact page or schedule an appointment today. IT Certifications Included in WGU Degrees, See all Health & Nursing Bachelor's Degrees, View all Nursing Post-Master's Certificates, Nursing EducationPost Master's Certificate, Leadership and ManagementPost Master's Certificate, Family Nurse PractitionerPost-Master's Certificate, Psychiatric Mental Health Nurse PractitionerPost-Master's Certificate. You might be a freelance writer or contract employee. Theyre not only less likely to return if asked; theyre also prone to leave poor reviews on independent workplace platforms. Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM). A gig worker can opt to work for a set amount of hours (like choosing a shift) or work by the project. Although organizations need to be cautious about giving gig workers access to benefits reserved for regular staff, there are other ways to attract and retain contingent talent. You dont get benefits like health insurance. The Pros and Cons of Utilizing the Gig Economy - HR Daily Advisor Many employers are now opting to outsource certain projects to digital marketing freelancers on short-term contracts. WGU is an accredited online university offering onlinebachelorsandmastersdegree programs. While this adds flexibility, it can also cause isolation from the other workers and the feeling of being removed or left out. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. External platforms and interim services like Jobber and Deputy, Cadeau argues, promote the true entrepreneurial spirit of the gig economy, by matching willingworkers and companies, and ensuring fair and legal wages, rather than employing ranks of permanent contractors as on-demand sub-employees. While it may sound like an oxymoron, a strong corporate culture is the key to bringing out the best in independent workers. "By not educating [gig workers] and communicating the benefits correctly, you risk either under- or over-utilization of the benefits, as well as gig workers not finding the benefits provided of that much value to them," he said. You know this already, but I have to say it. 1. Endorsement Preparation, English Language Learning (PreK-12). Companies are also giving these workers access to identity theft protection and pet insurance. Before we jump into the upsides of engaging talent through gig economy sourcing, in case anyone still isnt clear on the definition, heres a post from some years back wherein we answered the question, What is the Gig Economy? Here are some options, with pros and cons. But consumer power has also increased with a higher emphasis on the values and business practices of a company. Supply Chain and Operations Management B.S. What Is a Gig Economy? | Pros and Cons of Gig Economies - Netspend They also need to plan retirementand budget how much of a paycheck to put towards that each month. Finally, simply engaging gig workers as part of the team and including them in communications, meetings and events can help them to feel more appreciated and valued. Remember to provide meaningful acknowledgment. At WGU, your experience is our obsession! Working in the Gig Economy: Pros and Cons. By Kyle Torti | December 17, 2021 As noted in our last post, this week, the blog looks at the pros and cons of the "gig economy". Visit Field Engineer to see what engineering projects are available today! Worker Commitment. And in some cases, gig work is helping people to learn new skills in different sectors. In fact, one in three working Americans rely on freelancing for all or part of their income. To learn more about relationship-based ads, online behavioral advertising and our privacy practices, please review theBank of America Online Privacy Noticeand ourOnline Privacy FAQs. These tasks can be anything from getting groceries to writing code. Stay up-to-date with the latest articles, student stories, and guides from WGU. "Multiple Employer" plans, in which a single 401(k) plan is sponsored by multiple employers, is a retirement plan option for gig workers. Beyond the immediate needs of scalability, the gig economy enables an employer to meet and try out talented freelancers without a large up-front investment of time or money in sourcing, onboarding and training. Independents who fit with the culture will hit the ground running. As mentioned above, the gig economy is an increasingly attractive market due to the sheer flexibility that allows individuals to earn extra income. Business Management B.S. What are the Pros & Cons of the Gig Economy? - The Gig Force Do more than provide written statements about the culture; include them in group rituals that reinforce it. Despite the advantages of the gig economy, many employers are still worried about the potential risks of hiring temporary workers. Even if you have a good gig or contract, you need to be constantly looking for the next one. But the shift toward a gig-dependent economy predates the public health crisis and is expected to continue post-pandemic. External platforms and interim services like Jobber and Deputy, Cadeau argues, promote the true entrepreneurial spirit of the gig economy, by matching willingworkers and companies, and ensuring fair and legal wages, rather than employing ranks of permanent contractors as on-demand sub-employees. But its meteoric growth has not left much room for forethought about the impact it might have on society and employment, and there is still much debate around the benefits and risks of this way of working. 23 Gig Economy Pros and Cons - BrandonGaille.com Pay for freelance workers is variable from company to company. Using the Gig Economy: Pros and Cons for Your Organization - Adapture What Is the Gig Economy? Definition, Pros & Cons, Gig Jobs Alternate names: sharing economy, access economy, freelance economy Companies of all kinds are finding that when people can choose what they wish to do, can work in a variety of small jobs and get paid similar wages as a full-time role with more comfortable hours, there is a lot more effort required to attract and retain employees. You may be able to pick and choose your work, but because they are short term, you could be missing out on traditional career development opportunities like job training or mentorship programs. And what happens if you get hurt on the job? Set up a tax account. . At its core, the gig economy is the work model where individuals perform short-term tasks or projects for various employers rather than . Please enable scripts and reload this page. And behemoth LinkedIn is launching Marketplaces in September to capitalize on the need for short-term, white-collar jobs. digital transformation & education, Getting flexible, part-time work has never been. In the gig economy, businesses can save money on recruiting, benefits, and payroll expenses, while gig workers benefit by being able to earn income from multiple sources and complete projects and tasks with a flexible work schedule. With irregular income and less job stability, its always a good idea to build an emergency fund. The gig economy is a job market made up of temporary, flexible jobs where people are hired on the basis of being independent contractors and freelancers. Let's take a closer look at some gig economy pros and cons. Youre the bossand that could mean more motivation and potentially more personal income. Sometimes, gig economy workers are looking for remote jobs because they arent willing to work as hard. For many people, the gig economy offers a level of flexibility that traditional jobs simply can't match. The IRS allows you to pay quarterly tax payments based on what youve earned. It was created by David J. Friedman and is based on the leadership lessons he learned and taught in his decades as an award-winning CEO, speaker, author, and consultant. Being an independent contractor is an extremely independent job. Readers can write to Michelle Singletary c/o The Washington Post, 1301 K St., N.W., Washington, D.C. 20071. 5 Gig Economy Benefits Let's begin with five gig economy benefits. } Pay down debt? Comments and questions are welcome, but because of the volume of mail, personal responses may not be possible. Employers must nimbly adapt to provide everyone involved with a positive work experience. You need to become very disciplined with budgeting. Ask for and provide feedback often. Ask yourself, at a minimum level, how much you need to pay for the essential and important things every month rent/mortgage, transportation, utilities, food, insurance, cable, etc. Many freelancers find it best to work with an accountant so they can go over all the things they use for their work, and know what to write-off for their taxes. "Basically, when you're an independent contractor, everything you receivewhether it's in cash or other goods, is all taxable," Klimaszewski said. Utilizing gig economy workers allows businesses to have a diverse pool of flexible workers at their disposal. When a culture initiative is done well, it is the basis for an engaged, motivated, and results-oriented staff. However, surveys show that people save more when encouraged by an employer.