Many job seekers and organizations in the post-pandemic world are leaning more toward the gig economy. The short-term work arrangement has changed how people hire and work by introducing more flexibility. HR experts indicate that the new work model has introduced unease and uncertainty when dealing with untethered employees. However, the gig economy is the future of modern work, and here are the benefits of embracing it.
Benefits for the Organization
Improves a company's competitiveness
Firstly, embracing the gig model makes an organisation more competitive. Labor force statistics indicate that the number of freelancers has increased significantly, and about 50% of workers are likely to be contingent in the next few years. This information suggests that companies planning to remain agile should understand how the gig economy works and integrate it into their operations.
Cost-effectiveness
Hiring freelancers saves firms a lot of money because these temporary workers are less expensive than their permanent counterparts. For instance, they do not have to incur medical insurance, retirement plans, and other costs associated with full-time workers. Hiring gig workers also reduces the tax burden for organizations, depending on the employee's classification and engagement. In the US, the law requires freelancers to incur their tax burden.
Increased access to more talent
Embracing the gig economy allows companies to access more flexible and talented workers locally and internationally. Furthermore, they can hire people with different skill sets, of varying ages, and from different backgrounds to fill the open positions. The diversification fosters creativity and innovation and facilitates business growth and development.
Reduced administrative burden
Hiring contingent workers relieves the HR department of time-consuming duties, such as managing payroll and compiling data for full-time employees. Eliminating the administrative workload allows HR professionals to focus on strategic processes in the organization.
Scalability
small, large, or mid-sized businesses can easily scale their operations up or down by hiring gig workers as needed, allowing them to adapt to fluctuating demand without the constraints of a fixed workforce.
Benefits for the Gig Workers
Here are the ways gig economy participants benefit from this business model;
Increased flexibility and independence
Gig workers can choose their employers and compensation rates. This is because they engage in self-contained projects that allow them to use their unique knowledge and skills and achieve the set goals. These workers can also choose the jobs they prefer and which match their interests. This characteristic makes gigs more suitable for people looking for side hustles or ways to complement their full-time jobs. The flexibility and independence make gig workers happier and more content in their work and motivate them to be more committed to their professional responsibilities.
Increased Income
When gig economy participants work for more than one employer, they can diversify their income, which allows them to achieve financial stability in today's uncertain economy.
Skill development
Gig work often involves taking on different projects or tasks, providing opportunities for continuous learning and skill development. This can enhance one's resume and increase future job prospects.
Entrepreneurial opportunities
Gig work benefits people planning to pursue entrepreneurship or start their businesses because it offers a stepping stone for such endeavours. You can start and grow your business as a "side gig" while you continue with your full-time job.
Is embracing the gig economy worth it?
In summary, the gig economy benefits organizations and their workers. It generates more efficient, adaptable, and affordable services, allowing businesses to access personalized services and grow faster than before. These factors also contribute to these companies' competitiveness. Additionally, the new model offers employees an alternative way to supplement their primary income by working on different projects. Therefore, the gig economy is definitely worth it because it provides an efficient way for employees and employers to thrive and remain competitive in today's ever-changing marketplace.