The workplace has radically transformed over the last few decades. New technologies and increasing networking mean that staff is able to vote for versatility. Instead of maintaining what used to be a full-time contractor under their umbrella, workers can recruit one-off tasks individually.
Perhaps you have already voiced a view about the optimistic improvement. But right now, do you roll your eyes? Will your desire to find a job sound profoundly distressed? Do you sound a tad uncomfortable with how you find enough gigs to support your bills?
Around 57 American adults had freelancing in 2019. More than half of Americans will be freelancing in the future, a report by Upwork, a global freelance site provider, says if trends persist. Some of these staff are freelancers in full time. Others also work 9 or 5, but in their spare time, they do side hustles. A new type of job market is being addressed with the emergence of such part-time and freelance work: The Gig Economy.
If you are keen to enter the gig economy and make money outside of a full-time career, you would have to consider the various benefits and drawbacks of producing this form of income. You would require some simple accounting abilities, and you will need to change your lifestyle in order to function in this way. Taxes will be different for you.
Let’s explore in details what’s the sense of gig economy? and what the benefits & challenges gig workers face in their journey to generate income to survive.
Table of Contents
What Is Gig Economy? Benefits and Challenges Explained
The Gig Economy is an open enterprise environment that typically has transient, flexible employment, and businesses are involved in private contractors and freelancers rather than full-time workers and sometimes in short-term contracts.
What is the sense of “gig economy?” The gig economy is an open market for people to receive on-demand wages, short-term employment, or duties. Gig economy employees also find employment via online platforms or applications.
Gig economic employees are not workers but independent private contractors – mostly working for a number of customers. They are self-employed. This style of work has long been around – but the name has changed. The word ‘gig’ derives from the art world where comedians, singers, and actors earn a commission for shows considered ‘gigs.’
Most claim that big business has severely impacted traditional workplaces and redefined workers’ aspirations. Gallup says 36% of US staff, around 57 million Americans, are gig employees. They further report that 29% of all staff are mainly working with alternate work conditions (or concert work). A fifth of all full-time and half of part-time staff are interested in this.
Usually, freelancers, contractors, project-based staff, and temporary/partial time hires were among the giant employees on the payroll. Technology has been a motivating factor behind this freelance style of work at the moment. You can operate from almost anywhere by way of a smartphone and an unlimited data schedule (or a decent indie coffee shop with easy Wi-Fi and power outlet).
An independent employee is an autonomous entity that performs customer services. Often, but not always, these services are delivered to companies through the spread of economic networking networks such as TaskRabbit or Upwork. People may nevertheless sell their services directly to consumers without resources from third parties, often cutting wages.
What Are the Most Common Gig Economy Jobs?
It is important that we consider the numerous aspects of contract employment to comprehend the dynamics of the gig economy. Usually, gig staff is split into two categories: “independent” and “contingent.”
The first is a group that operates almost as well as a typical employer, which is without workplace security or other conventional rewards and privileges that require full-scale workers. The second is the group that works with another organization.
Any work which is hired or scheduled for a project is a real gig job. Service sectors have long been a field full of contractors (Television production staff or copy editors and photojournalists), and even more, conventional creative industry practices have been transferred to gig works. Some examples are contract advertisers, publicists, content producers and copywriters, graphic designers, UX/UI people, etc.
The concept of the gig economy includes a wide range of gig jobs, representing nearly every sector. There are comparatively new workers in a common gig economy, and there are others before the dawn of the industry. The various categories of gig workers are listed here:
- Graphic Design
- Virtual Assistant
- Social Media Manager
- Project Management
- Web Design
There are different faces of the gig economy and a multitude of opportunities to get interested in non-traditional jobs explained in our guide about the best highest paying gig jobs to have a deep overview about gig markets in the U.S. While some purists may advocate for distinctions, the four core fields covering most gig staff are these:
Traditional Freelancing: It entails a profession in the providing of specified, contractual services for people and enterprises. Traditionally, freelancing is based on artistic careers, such as artists, authors, images, and developers, but it spreads to non-creative practitioners such as bookkeepers and SEO analysts.
Gig markets: These positions are what more people in the mainstream prefer to equate with the gig economy. The major marketplaces are firms such as Uber, Airbnb, Lyft, Amazon Flex, and others. Many offer on-demand services and provide work for both the season and the year, and provide common additional incomes.
Self-employed: More conventional self-employed roles, including merchants, small businesses, and other related occupations, are included in this sector of the gig economy.
Additional areas: This is a major portion of the gig economy and is a “catch-all” for other ways to make money, such as tweeting, Amazon, Etsy, eBay sales, online advertising, and the like.
Top 10 Benefits of Gig Economy Jobs
You may have read numerous reports or facts about the “gig economy” and thought specifically about it. The gig economy does not seem as overwhelming. The premise is just that a diverse community of persons with various educational backgrounds earns their money in the same manner. Freelance or contract jobs were another way of describing it.
Staff in gig economics earn money by balancing their particular customers and doing jobs or doing “gigs” for these customers. Some concerts are as brief as a survey of five minutes, and most are programs of months and years. Whatever the length of the gig, employees who make a living in the giant economy must have the next project after they finish the present one.
People who work individually by preference and have freelancing as the key source of income say that they are more pleased with their work than conventional workers. Moreover (they don’t necessarily have a career that they want, but that helps them to cover their bills), the people employed out of desperation have the same degree of unhappiness with their employment if they have regular jobs or work in the gig economy.
In the gig economy, businesses can save both time and resources. For a long time and with all the benefits of a fixed-term worker, such as compensated vacation and health care, businesses should not appoint anyone, as is the case in other nations.
They do not only save cash, but they will also take the best person on board for a short while, and for a medium-long duration, they could be too costly. This could be particularly the case for positions that need professional skills.
Companies often save time with long cycles of recruiting and placement. With the digital technologies and applications that are today intuitive and intelligently developed, choosing the right person to work from is simple.
This allows companies to maintain their core businesses while focusing on external expertise as necessary. This helps them to be more flexible and to adapt faster to the impermissibility of the market. A team of diverse specialists, including a software developer, a builder, and an attorney, maybe pulled together easily in order to work on a short-term project.
The precise number of working people in the gig economy can be very difficult to estimate. The BLS notes that the gig economy has produced 1.6 million employees. The data also shows that many more individuals with “side hustles” or some other part-time or sporadic independent jobs engage in the gig economy. Here are the topmost advantages of the gig economy.
Most self-employed individuals in the gig economy see that they are very versatile in their position. There are several opportunities for gig economic employees, from hours of work they choose, to work where they want. Often a worker with a completion date is assigned a job, and how and when they perform the task.
Staff is also willing to work at the time they prefer, and on days they need. Some will find it to be a perfect time for early mornings to do their work, and that this may not be an opportunity for typical jobs. Working from a remote workplace or home is often granted freedom to operate. This is also appealing for people who try to function in families.
You will determine the position or the position you apply to, which networks to enter, where you function from, and on what timetable when you work in major economies. In the contract workers and digital nomad universe, you will be able to pick and accumulate jobs that best fit your needs and maintain a healthy working-life after you have developed a reputation and a clear business distinction if you have any suggestions.
Although consumers will (and would normally) set requirements for the job they wish to do, a service provider is still a freelancer rather than a worker. You will be free to review the completion of the job. But you could find yourself out of a gig if your customers don’t appreciate the finished product.
This can be a perfect means of caring for those with diverse and fluctuating conditions like teachers, young families, and individuals with health issues. You will determine how and how well you work without the burden of a rigid schedule. It offers you the right to handle dependents in your life and to provide about your own health and well-being.
The flexible hours are a wonderful feature of the gig economy. You won’t have to work as per the plan of anyone else. You will set a daily routine and your own workplace setting. You should be your own manager. In the evening, you can wake up and work in the morning.
Similarly, you have to deliver during the timelines. You won’t have to think about working between 9 and 5. In comparison, within a couple of hours, you can do your job. So you can enjoy yourself the rest of the day. It won’t be the employer there to annoy you. Similarly, the work is all you have to do. You won’t have to work as hard as most.
You probably want to hire a customer when you startup, but you still have the option not to hire challenging customers, especially when you grow up. You may also inform consumers that you do not want to work for them anymore.
Many contract employees or workers in the gig economy find their jobs autonomous. This freedom cannot be facilitated by being not in a workplace. Gig economy workers may find that they have a job without someone watching over the shoulders and are left to achieve it mostly independently. This can be a big boost of trust and encourage employees to do a job the way they think it is best done — according to their plan and in their own way.
If you want to be an isolated place with your profession, freelance is a perfect mobile alternative to those who want to work from anywhere. You should work and travel at the same time if you like traveling. Staff in the gig economy are autonomous. A gig worker is his own manager, in other words. Consequently, most gig staff need not hold workshops, review results, or deal with bureau rumors and drama.
The gig economy is perfect for you if you seek geographical freedom and live a high quality digital nomad lifestyle with no hassles when you will feel comfortable and protected against jobs market changes.. You’re not going to get tangled in cubicles. You are now free to go anywhere you wish. In addition, from all over the world you will enjoy jobs. You just have to have a laptop and internet access.
You won’t have to think about an earthly lifestyle as well. Likewise, you don’t have to be bothered by the atmosphere in a boring workplace. Your office will then be anywhere you choose. You will taste drinks on the beach while you drink. The gig economy environment thus profits immensely from regional freedom.
This lifestyle is ideal for you if you’ve ever wanted to discover the globe. Some people like to fly around the globe, but they have little time. You will thus fly around the globe and still operate for good. Likewise, you won’t have to think about making sufficient money. As a corporate giant, you should work at a distance.
Independent employees’ pay ranges from organization to organization. Few employers pay less to gig staff, while many pay extra to their employees as they don’t have to pay higher salaries. They will also bill their staff hourly rates. This means you can monitor the hours of work and get paid for more hours per day.
In addition to daily jobs, activities like meetings and telephone calls are cheap.
Higher education is feasible while operating in a gig economy, and these are incredibly scalable. You could obtain additional money by adding another degree to your curriculum vitae, as a freelancer or as a full-time individual.
Many gig economy employees will find an online degree a perfect way to apply for personal development. Online degrees offer similar benefits in terms of versatility and freedom, which could cater to those who are involved in gig economy jobs.
Freelancing helps you to set your own amount, which also is higher than what you will be doing as an employee. Ensure that you spend enough to cover expenses and adequately reimburse for the time it takes for you to do the job.
You probably will have the requisite equipment or tools for delivery if you have the resources to offer a certain facility. The cost of starting up should not be steep because you are new and require supplies, preparation, and experiences.
4.An Abundance of Jobs
Gig economy workers might find that they are faced with a wide range of work. Instead of identical, uniform tasks to be completed every day, various components that make the job exciting can be packed with each assignment or gig. People will then find that they are more interested in projects and more innovative because they change every day.
You will appreciate a wide variety of rewards while you work as a gig economy worker. Similarly, there may be limited opportunities in your area. As a gig economy worker, you will therefore extend the scope. Fresh sites and employment can be sought. Moreover, as a gig economy worker, you can keep many positions. So, when working, you will discover new possibilities.
The living model of the gig economy provides fresh career growth opportunities. In addition, this lifestyle would bring a lot of personal growth opportunities. Thus, you will concurrently build your career and personal life.
You will also enjoy better experiences and possibilities in your life. The odds vary from place to place, as we all realize. The independence of the venue thus gives you more opportunities than ever.
The freelance market is competitive, but the demand for quality is increasing, and so are trustworthy freelancers. Nowadays, many companies don’t have workers and focus instead on a squad of freelancers. This pattern is now the as self-employed people cost employers less than workers, while they are paid a higher rate—since they have no payroll fees or bonuses.
5.No More Trading Hours for Money
You should wave farewell to time trading for money as a brilliant gig economy worker. You must offer your time for money while you work as an employee in a workplace. Companies are worried about how long you spend working. You are then obligated to deliver as many hours as the business wishes.
Moreover, the organization wants you to work from a singular space. So you should get rid of this by working as a gig economy worker. Likewise, you won’t have to swap money time. Remote businesses are only concerned about your successes. They pay attention to your contributions. They think about your effect on their business. It doesn’t matter to them your number of hours. With the rise of digital nomads jobs people have started to trade their working hours with adventures and new skills to survive & enjoy at the same time.
You may then say farewell to the trading time for income. You should work within your particular specifications. You can therefore operate for 8 or 2 hours. It is up to you to choose. You should still do the work at the earliest opportunity. You will keep seeing the planet for longer.
However, this is not the case with all businesses. There are also remote agencies that count the hours. Therefore, you will need to pick a company. You should pick from many firms because you would have more options than ever. A better choice of employers is available. You may also work with a comparable boss that cares about the efforts.
6.Better Quality of Life
You will improve the quality of life if you work as a gig economy worker. You will then function from whatever environment you would like. In addition, from across the globe, you may eat healthily. You will also have an active lifestyle. More exercise and stimulation would be offered. You will receive the nutrients required to strengthen your immune system.
You should pick a position that suits you when you work as a gig economy worker. So the frustrations of an office environment should not be there with you. You’re going to reach people of the same mind. It will change your life positively. It will motivate you to find the good stuff about life. You should clear up your questions. Furthermore, a friendly atmosphere boosts the mood.
7.No Office Politics
We are both mindful of how cruel politics in workplaces can often become. You must choose sides. You may even become a target of the politics of the workplace. You should get rid of this as a gig economy worker. This feature is ENCOURAGE people around the world to become a freelancer to avoid office stress and routine.
No repetitive stories about workplace parties are to be heard. In comparison, you won’t have to waste additional time playing anyone. In whatever way you choose, you will live your life. Politics in the workplace will affect your mental and physiological health. With the gig economy climate, you will boost your fitness. You don’t have to be surrounded by poisonous individuals.
8.Lower Costs for Business
Since employers do not have to fund full-time salaries or full-time onboard expenses, new hires also spend less than other employees. Employers may pay a wage and often do not need to supply gig economy staff with work supplies. This encourages them to cut expenses and to pay only for the real jobs they perform.
9.Scalability for Businesses
Some smaller businesses or startups find freelancers who can grow their businesses rapidly. Small businesses simply have to hire employees who have their own machines who can do the job without needing to provide office rooms, facilities, and benefits. These people can be identified easily and with no advertisement by word of mouth often.
Businesses can fulfill their business priorities and needs while retaining low costs. They can save time and resources by designing hospital services or HR programs and can easily recruit staff to carry out basic tasks at the time.
10.Diversity for Businesses
The utilization of gig economy staff helps organizations to have a diverse pool of mobile employees. These employees often work different hours than regular working hours, making it less difficult to do anything late or early at night. Workers are also happy for a weekend job, and they can do so from home with choices and convenience for firms.
Gig economy employees are mostly aged and experienced, and firms may rely on their expertise to use workers on various tasks. The frequently varied experiences of gig workers will really encourage the business to generate more innovation and ideas.
What Are the Challenges of Gig Economy?
The gig economy is decentralized and affects multiple players, from contractors to corporations and customers. Although there are a few benefits for gig economy employment, the downsides here still make it difficult.
1.Minimal or No Benefits
Regrettably, bonuses are not part of the deal for most enormous economy workers. The rules for the company’s benefit are different when you are not a full-time agency employee. Few firms offer long-term contractors advantages, although this is uncommon. Gig economy workers should schedule budgeting for private insurance transactions.
You will have to prepare a transition and account for how much you spend per month. There are several options for saving money for savings from IRAs and 401ks. For freelancers, most companies are not going to cope with this, so it is easier to meet with a financial planner to find a suitable answer.
Likewise, most corporations would not eliminate taxes for you. This means that you have to prepare to pay taxes. The IRS requires you to pay quarterly deductions on the basis of the money you receive. In order to not owe the IRS, come a fiscal time, most freelancers will expect to spend between 25 and 30 percent of their paychecks. These tax payments can be easily submitted with the right documents to the IRS via check.
Gig economy employees are typically often responsible for personal working costs, such as computers and mobile phones. Although this can be excluded from income, caution should be taken about what you subtract. Most freelancers think it best to consult for an accountant so that he or she knows what to write down for his or her taxes.
You are missing out on benefits such as insurance and pension programs funded by the boss. There may be trade organizations that may enter you in order to receive health care premiums based on the employment.
Any people may have trouble with the isolated, remote life of the gig economy. Freelance employees also don’t go to the workplace and lack the social aspects that remain. Gig workers can find themselves spending a day alone, working from home, or at a distance from parties to normal water cooler talks. While this adds versatility, it may also insulate the other workers and cause the impression that they are robbed of or abandoned.
You are primarily alone as a gig economy worker. Therefore, partnerships can be more difficult to establish. Likewise, people in your life will come and go. You must move around the world on your own. You’re going to have to say goodbye and move on. Being alone is one of the most common challenges freelancers face, especially the ones working in tech industry.
Furthermore, you will find it tough to make consistent mates. You won’t have time to make friends because you’re traveling the world. You will build relationships with new people. On the other hand, when you head to the new location, you will have to abandon them.
Gig economy workers must search to locate their next performance or be able to take part in their latest concert on a daily basis. This will lead to depression since most people appreciate that their careers are safe and stable.
Gig workers often face sudden work shifts, from being released to a reduction in their pay. There is also tension removing from other workers. It can be difficult to discuss whether there are concerns or difficulties with a project.
This is especially true when you provide one-and-one services such as the production of a certain commodity. You sign the completed product back to your buyer, and that’s the end – you must find a new customer that needs your product so that you can build and pay for it again.
This can be avoided by more professional freelancers by seeking customers who work reliably and achieve returns that make them traditional manufacturers and service providers. For example, a freelance writer might have a customer who continually demands an article twice per week.
5.Less Reliable WorkForce for Businesses
Often giant workers opt for remote jobs because they are not prepared to work as hard. This is tragic for corporations, and they should ensure that they have a trustworthy employee in order to develop their priorities and to select independent staff.
Firms involved in recruiting self-employed employees must recognize all the laws regulating the position of contractors in their state. Some countries demand signed arrangements, and others are “at-will,” meaning the partnership may be terminated at any moment either by the employee or an employer. It is also important to file reports and to include income records that are distinct from typical, full-time, tax-paid workers. For companies to manage, there can be some headaches.
How to Become An Excellent Gig Economy Worker?
If you’re a person who wants to take advantage of the gig economy benefits or an outsourcing firm, you must adhere to the following practices. It’s always workers who weigh the biggest list of pros and cons when it comes to making a move into a massive economy. It can only take a lot of trial and error to understand what is required to excel as an independent worker.
Thus, learning how to succeed in the gig economy can be your first point of interest if you are one of the many hundreds who join the gig economics as a side-thrill or your predominant source of income.
1.Set Your Routine
Routines have a poor reputation nowadays. They are often connected to defense or dull administration. There is, however, a rising volume of study that otherwise indicates. Routines increase concentration and performance and are regarded as such by accomplished performers.
There are, of course, work-specific rituals – scheduling, executing a to-do list, beginning the day with the hardest task, or with a customer call – enhancing efficiency and concentration. Self-care (sleep, diet, practice) are more intimate in one’s life. In unpredictable situations, both strengthen people’s sense of order and power.
Boring bureaucracy should not have to be connected to schedules. In reality, when it comes to improving concentration and results, they are your best friend. This will be told to you by every good freelancer. Setting up the job routines includes maintaining a schedule, following to-do lists, beginning the day with the hardest job, or firstly taking care of this customer.
All habits don’t have to be job-related, though. Efficient freelancers also find greater efficiency and concentration through integrating self-care into one’s life (sleep, food, practice). In unpredictable situations, both strengthen the sense of order and power of others, which also occur when working for yourself.
2.Know Your Purpose
While striking alone is a driving force behind gig work, it is also important to do work that contributes to a greater goal. The purpose establishes a connection between personal desires and a need in the world—a wide distinction can be made between good and non-successful individuals.
It may sound like a drafted job, but the productivity of independent workers is driven by purposeful work. Everybody wants to be happier at their work, but the aim provides a connection between personal ambitions and a global need — that can make a huge difference between good and poor individuals.
3.Say Goodbye to Loneliness
As people, we are social beings, so the epidemic of “loneliness” could devastate the successes of self-employed workers. Studies in business cultures have long shown the value of others to our futures as role models who show us who we can become and as mentors to help us succeed in our quest.
Establish partnerships with support workers, contacts in related fields, or similar professionals in a local co-working community, which will take you through tough times and inspires you to take the requisite risks to develop your career.
The lack of human interaction is one of the main concerns that autonomous works have. Connections in a physical workplace, lunches with friends, or a frequent, happy hour on Fridays take place in the typical working setting.
Since many Individual Employees are not readily accessible, it is necessary to prevent forming working relationships. Try working with contacts in your neighborhood or carry your workflow to a co-workplace where you have a feeling of community rather than home.
4.Choose the Right Place
A corporate office disconnection is one of the enticing variables for gig work, but it may also cause many staff downfalls. Often people struggle to do whatever they do, and they do not make space and time to do.
The research identified a common theme in that all active students sought a workplace to defend themselves from distractions and stresses. Gig work is also flexible, and so it helps to avoid feelings of rootlessness and create a space for fruitful work. It is also a driving force for the expansion of worldwide co-working spaces.
The capability of working everywhere is both a huge advantage for independent employees and one of the main barriers. While portable work is wonderful, it can help to escape feelings of rootlessness by providing space for constructive work. This desire for a productive “location” is also a catalyst in the development of co-working spaces worldwide.
What Is the Bottom Line?
Surfing the gig economy doesn’t mean it’s tough. However, as autonomous workers, many people experience satisfaction, independence, and achievement that they did not perform at a traditional workplace.
The gig economy on the employer side shakes the workings of conventional workers. If you’re a proven corporation or a business that needs external expertise, you are freer now than ever to recruit one-off ventures on a self-employed basis.
The gig economy offers plenty of possibilities for making extra money from on-demand small jobs. Gig employment under various labels has been around for a long time. There is a wide range of gig jobs, including freelancers, consultants, private contractors, and time.
Low pay and uneven salaries for gig jobs are a real thing. Moreover, their income taxes, salaries, and investments are liable. Gig economy jobs, though, offer lots of freedom and versatility and generally have a low barrier to entry.
It is certainly empowering to handle your time, schedule, and first place in your life and second career. If you excel in getting the consistency you need, you will work in gig economy jobs in a kind of full-time way. The economy is also good as it improves engagement in the workforce, especially in terms of flexible, part-time jobs.
In comparison, the number of hours working and the employer perks such as pension plans and the insurance plan never change. There’s a constant paycheck. It’s also an economy not ideal for all, but only for those who are thorough and reliable. Or for those who believe that they would either make more money by doing it as a side job or for someone who lives without planning a future in their field of interest.
The predictions are that employment will begin to grow in the gig economy. National legal structures must respond to this emerging development and guarantee a form of social security for self-employed workers. Whether or not you have the gig economy, you must consider your profile and skills and see if you can do it part-time or full-time well. You should also examine what the consumer is expecting. One thing is certain: no need to hurry. The gig economy is here to stay.
The challenges of learning how to handle the gig economy are not without obstacles. But it will take practice, some test, and error to find out what fits well for your professional style. The gig economy has fantastic options, but it’s still very unpredictable. Some people prosper well, although others find it a struggle. The gig market is still growing. Maybe this is the call you have been waiting for if you believe your life needs to change!