You’ve probably seen or heard the phrase “Gig Economy” so often over the past few years that you’re developing a certain amount of fatigue or frustration at the overuse of the term. Few of us, though, have stopped to think how the Gig Economy might impact the landscape of the workplace in the future.
Currently, the Gig Economy is dominated by ridesharing. Uber and Lyft have given millions of people an opportunity to work when they want to work and cash out every day. Need to pay a bill tomorrow? Work a twelve hour day today and make what you need. Got what you need for now? Sleep in today. No bosses or supervisors telling you how to do your job or riding you about a deadline.
Companies developing freelance or gigging platforms don’t see themselves as employers. They see themselves as tech companies providing entrepreneurs with a platform for finding customers. Uber and Lyft, for example, feel they only supply the technology that connects riders and drivers (for a small fee, of course).
In addition to ride sharing, a myriad of other platforms have popped up that match workers with customers in a wide range of industries. In fact, Recruitingtrends.com reports that there are an estimated 500 on-demand staffing platforms operating in the U.S. alone. From writing, advertising, coding, legal work and software design to warehouse stockers, retail and even restaurant work, technology is allowing people with the appropriate skillset an opportunity to choose when and where they want to work.
The question is, how does this affect recruiters who are trying to find people to fill more traditional jobs that require training and a long-term commitment?
There are many benefits that a traditional job can offer that on-demand work cannot. For starters, traditional jobs offer stability and actual benefits such as health, retirement, and paid-time off. Also, traditional workers can forecast their finances and budget for the long-term. Finally, if traditional benefits aren’t compelling enough, companies can choose to incorporate some of the benefits of freelancing such as flexible schedules, working remotely, and opportunity for career growth and training. 1
Before we go too far, though, in trying to recruit against the Gig Economy, maybe we should look at whether there is a reason for real concern. Forbes magazine recently conducted a study that revealed some surprising facts about who works freelance.
The study finds that while the Gig Economy is growing fast (from .3% in 2013 to more than 4.5% of U.S. families participating within the last year), the vast majority of participants only dip in and out of freelance work with many only active a few months out of the year. In fact, the study found that 58% all people who earned any money from transportation platforms (by far still the largest resource for on-demand work) did so for less than three months out of the year. Less than 20% of all gig workers earn money this way for six months out of the year. The demographic portion of the study confirms that the majority of gig workers are the very young (who value flexibility most) or older workers who are attempting to supplement their income.
This study seems to indicate that traditional work and gig work don’t have to be mutually exclusive. In fact, freelancing may be making it possible for many workers to remain in jobs they love but that simply don’t pay enough on their own. On-demand work may also be meeting a creative need for some people that they can’t get from their day job.
In the end, the Gig Economy may not be the enemy of traditional jobs that so many have predicted. It’s possible that the two can co-exist. Maybe, one day, workers will find that a hybrid of the two will be the norm—something that combines the best of both. 2
By Joe Moreland