The Gig Economy Refers To A Model Of The Economy In Which Employers And Job Seekers Cooperate On A Temporary And Project Basis. 

This makes gig jobs more flexible than full-time jobs. In this case, companies contract with independent contractors and freelancers for short periods instead of hiring full-time employees.

With over 100 years of history, the gig economy has become one of the most popular ways to make money today.

Surveys conducted by Gallup show that nearly 57 million people in the United States will be members of the gig economy by 2020, equivalent to 36% of the American workforce. New research shows that 79% of executives believe that working is changing from traditional to project-oriented.

A 100-year-old economy

The history of the emergence of this economy goes back to the early 1900s. A time when a group of musicians would temporarily hold live performances together to earn money. This model of temporary work matured over time and according to social changes. For example, in the economic recession of the 1930s, some farmers were forced to sell their land and work as temporary workers in other sectors. In the 1940s, the first temp agencies began their work and introduced people such as secretaries, typists, or trained employees to companies who worked temporarily.

With the growth of the Internet, various platforms, and startups, gigs have gained more attention. In the early 1990s in the United States, nearly 10% of employees worked on temporary, contract, and shift basis. With the start of the Craigslist advertising agency, as one of the first companies active in classified ads, the gig model found a new definition.

Ten years after this date and simultaneously with the start of Airbnb, the online program for taking temporary accommodation, and then Uber, the online schedule for requesting a car and similar examples, the gig economy and working in it entered the world of work as an official term. Became.

Traditional concepts such as the full-time employee have been abandoned in the gig economy, and new business models have entered the business world. With the increase in the number of businesses, the gig economy was seriously considered, so today; it refers to a type of economy in which the cooperation between the employer or the organization and the job seekers is temporary and for short periods. , To understand the complexities and layers of the gig economy, it is essential to learn about the different aspects and classifications surrounding gig jobs. Gig employees are divided into two main groups, independent and temporary.

• Independent Workers: Some employees work independently with organizations and companies, and each person is their boss.
• Contingent Workers: This group of employees works for a company or organization like a regular employee, except they do not have job security or benefits.

Based on these two main groups, gig workers are divided into the following four main categories:

•  Freelancers: Some people can serve several clients simultaneously.
•  Consultants: Some people guide customers.
•  Independent contractors: This group has many similarities with a traditional employee, except that they are independent and are not obligated to do full-time work for a company unless this point is mentioned in their contract.
•  Temporaries: This group of people has temporary cooperation with companies independently and under contract.
•  Seasonal workers: This group provides temporary services to companies as independent contractors.

Gig markets

Gig work is another complex term around the gig economy that does not have a fixed definition. Gig work is an area of the gig economy where people are active. In general, there are four types of business categories in the gig economy as follows:

• Classic freelancing (Traditional freelancing): The primary and standard model of freelancing includes temporary cooperation of people and businesses in different fields. Freelancers work in creative professions such as design, writing, photography, software development, SEO analysis, and similar examples.
• Gig marketplaces: This group of businesses is the interface between people and the gig economy and is the media’s focus. Companies like Uber, Airbnb, Lyft, etc., are in this group. Some of these companies operate in the field of on-demand services and create additional income for people.
• Self-employed: This part of the gig economy includes traditional freelance jobs such as artisans, small business owners, and similar jobs.
• Other areas: It is one of the significant sectors of the gig economy, which includes various sectors such as blogging, online sales on platforms such as Amazon, and eBay, affiliate marketing, or the system of cooperation in sales and income streams. It is similar.

Leaving your current job to enter the gig economy

In a situation where the gig economy has less job security and benefits than regular jobs, the idea of ​​”working for yourself” and having a higher level of job flexibility is of great interest to people, especially people with technical expertise. A study of 1,000 full-time corporate employees found that more than 30 percent would be willing to leave their current job to work in the gig economy if they could earn the same amount.

Paying based on specific and strict frameworks, a toxic work environment, and fatigue from working full time from 9 am to 5 pm are important reasons for employees who want to work in the gig economy. Delving further into these findings, we find that although having autonomy and freedom at work is one of the most important reasons (33 percent are looking for more flexibility in the workplace), dissatisfaction with the current job was observed in most participants in the survey. A closer look at the data obtained from this survey provides us with exciting results as follows:

Employees between the ages of 45 and 54 are just as likely as those in their 30s and 40s to find jobs in the gig economy because they’re tired of working eight-hour days. People between the ages of 35 and 44 are more likely to leave their jobs to enter the gig economy because they are not interested in the current environment and are dissatisfied with their manager’s performance.

What are the advantages of the gig economy?

With the expansion of the Internet and the use of smartphones by more people, the gig economy is also growing and has given rise to emerging jobs that can hardly be classified as full-time work. This economy has many advantages for today’s labor market, but due to its nascent nature, it also has disadvantages. In the following, we examine the advantages and disadvantages of this economy for businesses and employees.

Among the essential advantages of the gig economy, the following should be mentioned:

• Abandoning fixed salaries: Having full-time employees means paying monthly salaries and annual benefits such as holidays, etc., which causes businesses to face many costs. The gig economy helps companies that cannot afford to hire full-time employees to work part-time with the needed specialist.
• Working with flexible working hours: The gig economy helps businesses have access to many employees and can use experts in different business departments according to their needs.
• Remote work: The gig economy’s most significant advantage is not having to be physically present at the workplace. This helps people to work with multiple companies at the same time. In today’s world, where everything is done online, telecommuting or working from home is common. This issue has received more attention since 2020 and the peak of the Corona epidemic.
• Freelancing is similar to entrepreneurship: instead of spending a lot of time and resources building a website and hoping that maybe someone is looking for your services, you can use gig economy platforms that provide you with good opportunities to introduce your skills and allow They let you find potential customers with ease.
• Providing conditions for personal growth:  The gig economy allows you to work on your skill sets or interests and earn money.
• Diversity in work: The gig economy has the advantage of connecting with different people and working on projects that may be different from each other.

Points to consider when moving to the gig economy

Build your resume: A resume helps describe your outstanding work portfolio showcasing your skills and abilities. In summary, hiring managers and employers study a person’s skills and background to see if they are a good fit for the company.

Pay attention to the flexibility of doing things: Freelancing and the gig economy allow unlimited payment structures. In addition, you can travel and have fun without the company expecting you to be available.

Identify skills needs and gaps: Take the time to assess the projects you are about to undertake. This will help you accept projects that you are capable of doing.

Work with an established platform: Fortunately, much of the work done in the gig economy can be done through existing media and is well received by companies. This allows both companies and freelancers to communicate with each other at a lower cost. So, go for well-known platforms that provide good features to freelancers.

Disadvantages of the gig economy

Among the crucial disadvantages of the gig economy, the following should be mentioned:

• Employees are no longer part of the organization: With temporary and short-term collaborations, there is no longer any reward or encouragement. Employees may not deliver the work to the employer with high accuracy and excellence because they do not have a sense of loyalty to the company. This issue can cause the loss of concepts such as long-term relationships between employees, employers, customers, and vendors.
• Low work commitment: Another disadvantage of this economy is the reduced work commitment on the part of the freelancer, which makes businesses unable to count on the force under their collaboration because, in different circumstances, unions may remain half-finished.
• High stress: Without work and steady income, the gig economy is stressful for employees, as there may be nothing to do at different times of the day, and freelancers’ lives can be complicated. Also, flexibility in the gig economy means that people must be ready to work anytime. Because there is a lot of competition in the field of gig work. As a result, employees in the gig economy may experience a lot of stress.
• The disappearance of the traditional work model: Concepts such as temporary cooperation or cheap labor make it difficult for people interested in full-time work to find the job they want.
• Lack of security: In the gig economy, there is no job security, and employees in this field do not have the annual benefits of a regular employee. Also, the employees in this field are facing the problem of a lack of unemployment insurance.

Best practices for gig workers

Employees must consider a long list of pros and cons when entering the gig economy. A freelancer must make a lot of trial and error to learn how to be successful. A 2018 study of 65 people working in the gig economy was done, and the results were remarkable. Regardless of the type of work, all of them felt some form of personal, social, and economic anxieties and worries, the reason being the lack of support from the employer. However, they all stated that this independence was their choice, and they were not ready to give up the benefits they had gained with this choice. Disconnecting from the corporate environment is one of the attractive factors of gig work, but at the same time, it can reduce productivity for many. Many people fail in this path because they cannot use time correctly and optimally. To be more precise, they don’t have enough time management skills. During this research, experienced independent freelancers have managed these stresses with common strategies to maintain their energy and morale.

Getting Started as a Freelancer

Getting started as a freelancer can be as simple as visiting a freelancing site to find work or networking to find potential clients. Regardless of the field you intend to enter and the services you are going to provide, you should pay attention to the following essential principles:

•  Specify what services you offer.
•  Define your target market.
•  Set your desired rates.
•  Create an online resume.
•  Market the services you offer

This makes gig jobs more flexible than full-time jobs. In this case, companies contract with independent contractors and freelancers for short periods instead of hiring full-time employees.

With over 100 years of history, the gig economy has become one of the most popular ways to make money today.

Surveys conducted by Gallup show that nearly 57 million people in the United States will be members of the gig economy by 2020, equivalent to 36% of the American workforce.

New research shows that 79% of executives believe that working is changing from traditional to project-oriented.