"Gig"... After spotting this word, your thoughts might have wrapped around the name of a one-off live musical performance coined at the 1920s jazz scene. Unluckily, if you hoped to delve into the universe of music, I might be unable to satiate your artistic hunger here.
Notwithstanding, the word gig has also found its unique melody in the exquisite thicket of economic terms, revolutionizing the reality of the 21st century.
What exactly is the gig economy?
The traditional economy we have gotten so used to predominantly comprises long-term employees connected with companies by full or part-time contracts, who typically drive to work every morning and focus on maintaining a lifelong career.
The gig economy, on the other hand, is a free-market system based on temporary positions and short-term labor commitments. Compared by its participants to the art of presenting acrobatics while swinging on the trapeze, it gains its recognition among thousands of people.
According to the study conducted by Mavenlink, "63% of regular full-time employees will leave their jobs for a gig." In addition to that, Forbes indicates that "the gig economy grows three times faster than the traditional workforce."
Freelancers, independent contractors, and temporary project-based workers all match the definition of a gig worker, feasible to be found in every industry. According to the report by McKinsey: "knowledge-intensive industries and creative occupation are the largest and fastest-growing segments of the freelance economy." Generally, every person entering into a formal agreement with a company to provide services without being on the company's payroll can call themself a gigger.
Sources of the gig economy
Besides technological expansion, frequently mentioned factors that supposedly gave rise to the gig economy are the Great Recession's consequences. This memorable crisis left numerous employers much less likely to make a substantial financial commitment by bringing people back on full-time contracts.
The ongoing growth of the sharing economy in dynamically developing sectors, like car sharing, online staffing, peer-to-peer accommodation, or peer-to-peer finance, is also highly responsible for this perpetuating trend.
We should also remember that a rapidly increasing percentage of people becoming giggers settle for this choice due to its diverse benefits.
Magic of the gig
With two formidable forces – globalization and digitalization - overlapping at its forefront, the gig economy has an unparalleled potential to expand its horizons and cultivate fresh opportunities continuously. An Internet connection and growing prevalence of remote work often allow it to thrive with no geographical constraints.
From the employers' perspective, the gig economy can easily save some precious resources, like costly office space or timely employee training. It also allows them to obtain a fresh, unbiased outlook on the market or product from an external perspective provided by the gigger.
One of the mightiest allures of gig-reality for employers is its exceptional flexibility. According to the FlexJobs 2018 survey, as much as 70% of freelance workers claim that they have attained a better work-life balance due to joining the gig market. The possibility to have the decisive power over professional life and the ability to freely select jobs or projects splendidly matching with the worker's mightiest skills construct a valid argument in favor of this economic model.
It is also pivotal to mention that the gig economy has found its place in conversations about women empowerment, casting a powerful ray of optimism related to increasing female involvement in the economy. As many women decide to leave their full-time jobs after starting their families, the gig economy allows them to re-enter the workforce in a much more flexible manner.
Shadows of the gig economy
I guess I am not reinventing the wheel, saying that every rose has its thorn, right?
Many giggers pay for their freedom by earning a modest paycheck; notwithstanding, it predominantly depends on the worker's type of occupation and the expertise level. Currently, the highest paying positions for freelancers are within AI and Blockchain.
There is definitely one issue all gig economy members have to deal with – uncertainty. Moreover, this freelance way of working offers much fewer benefits and security compared to the traditional workers with little or no health or retirement benefits, tax complications, or out of pocket equipment expenses.
But is the gig economy an entirely new phenomenon?
Famous career coach Patricia Romboletti has made a significant point in her TED Talk at TEDx Centennial Park Women, questioning the gig economy's novelty. "I believe that every role is a gig, and you are all part of the gig economy." Later, she has effectively clarified her stance by highlighting the Bureau of Labor Statistics' findings of the median tenure's length, which equals 4.1 years today. The extraordinary speed at which new companies rise and succeed, combined with omnipresent technological advancements, can make even the most stable career paths truly volatile these days. No matter if someone has just signed a job contract or became a freelancer, they can quickly have their employment status changed.
From this intriguing perspective, the global economy has already begun turning into one giant gig economy, where the absolute core values people should devote to are agility, flexibility, and adaptability.
So... are YOU ready to become a gigger? :)
Comments