The Gig Economy – Pros and Cons for Businesses and Workers

The gig economy has quickly emerged as an attractive means of making money. People are turning to Uber, Upwork and DoorDash apps as platforms for work-from-home opportunities in various fields ranging from food delivery and marketing services.

GIG work can be liberating. But like anything, there are both advantages and drawbacks associated with gig work for businesses; specifically managing remote workforces can be tricky.

1. Flexibility

One of the primary advantages of gig work is flexibility. For gig workers, this means selecting projects they are most passionate about and making their own schedules, leading them to greater job satisfaction and motivation as well as developing various skills from working with different companies and professionals.

As many gig jobs don’t provide employee benefits, these positions tend to be less costly for businesses looking to save money. Unfortunately, for employees this means less secure income, leading to feelings of isolation as workers aren’t surrounded by coworkers – potentially increasing social withdrawal as well as possibly missing out on worker’s compensation benefits.

2. Flexibility in Pay

The gig economy offers people an alternative form of employment and allows access to diverse jobs, but can also be taxing when managing income instability and finding balance between their personal and professional lives.

Due to many gig work positions not offering benefits like health insurance and retirement plans, workers in the gig economy must make estimated tax payments and set aside savings accounts to supplement earnings. They may also need to purchase work-related equipment like laptops and cars – this can be costly but helps devote more time and effort toward their job responsibilities. Luckily, government policies and platforms exist that protect gig workers.

3. Flexibility in Time

Gig work provides individuals with the flexibility to adjust their schedules around personal obligations and obligations, which allows them to spend time with family, pursue hobbies or activities, or take on additional side projects – leading to greater work-life balance and overall job satisfaction.

But gig workers often lack the security of full-time employment with benefits and may find it challenging to meet expenses such as health insurance premiums and save for retirement.

Businesses can assist gig workers by offering them the same benefits that are provided to permanent employees. This could include offering group-level pricing on products as well as contributing to workers’ 401k/IRA accounts. In addition, businesses should shorten the hiring and training processes so gig workers can begin work quickly.

4. Flexibility in Schedule

Worker flexibility in The Gig Economy is one of its main draws, giving workers freedom of time and method. Being able to choose from various projects allows individuals to try new experiences while developing various fields of expertise.

Data from platforms like Uber, DoorDash and Instacart suggest an increasing number of Americans are partaking in nontraditional forms of work such as Uber, DoorDash and Instacart. BLS data for May 2017 indicate that three out of ten adults had earned money through these platforms.

Many gig workers cite their primary motivation for taking this type of work as being to control their schedule and be their own boss, make extra money or supplement other jobs.

5. Flexibility in Learning

Gig workers typically opt for projects that allow them to gain new skills and experiences, which makes gig work an attractive choice for professionals looking to broaden their professional portfolios. According to Investopedia, gig workers also tend to enjoy greater freedom to pursue projects that fit with their individual passions and pursuits.

Gig workers use online platforms to find temporary engagements, like driving for ride-sharing services, painting a home, or helping with database projects. Because these engagements tend to be short term engagements they don’t require as much support from management than full-time positions would such as onboarding and office space requirements.

Most Americans consider flexibility the primary benefit of working in the gig economy job sector, in addition to being able to set their own hours and manage multiple gigs as means to meet financial obligations.