businesses cashing in on the gig economy

Our world has not been the same since the innovation and evolution of the internet. It has completely revolutionized every aspect of our lives, hence, in today’s fast-paced world everything is digitalized – even workforce. The global employment market is changing dramatically alongside the labor market. Gone are the days when everyone had a 9 to 5 job. People are working smarter and trying to make the most of their skills and efforts. Be it freelancing, side-hustles or gigs, workers are now expanding their availability and trying to earn through more flexible and convenient means, including through online platforms.

As businesses respond to the changing trends of technology and its impact on globalization, they need to address the challenging impacts that come with it. Organizations need to keep up with the rapidly fluctuating consumer preferences, adjust resources according to demand, compete with striving startups and meet the costs. One thing that addresses all these needs is the Gig Economy.

 

What is the Gig Economy?

In simple words, the Gig Economy is a new-age labor market where employers hire workers on a short-term contractual basis, giving rise to a whole new class of employees i.e., contingent workers. Gig workers or contingent workers are independent contractors, independent consultants and on-call workers that sign a formal employment agreement for on-demand companies. The Gig Economy provides job opportunities to temporary workers on a contractual, freelance or a part-time basis. Uber, Lyft and Airbnb are a few examples of organizations using this business model. Amazon Web was once a small startup that also operated on Gig Economy and today has become a multi-million dollar industry.

This is an exciting career revolution for those who want to set their own schedules and work on their own terms. Therefore, it is the perfect employment shift for an independent contractor, consultant or freelancer. Likewise, traditional employers becoming part of the gig economy also have a lot of benefits and opportunities to cash in.

 

How Employers Are Cashing In?

According to Harvard Business, the gig economy is a half-trillion dollar global industry. Whether you are an entrepreneur looking for a labor force or temporary staffing and workforce management service, you have the opportunity to make the most of the gig economy.

Here is how the gig economy allows employers to cash in on great profits at minimum cost.

 

  • Cost Savings

One obvious reason employers can have good revenue by hiring gig workers is cost savings. As employee benefits like retirement planning, conveyance allowance, health insurance and job security are only for full-time workers so temporary labor comes at a much lesser cost. Moreover, since most of the gig economy operates through online channels, recruitment costs are close to none. In most cases, the employer just has to pay for the work done and that’s it – no additional costs whatsoever!

 

  • Diverse Pool of Talent

Millennials and Gen-Z make up around 81% of the new workforce and according to statistics 87% of them want to choose the gig life and set their own work schedule. This is why the demographics of the labor force are changing now. Employers who appreciate the gig economy will have a better chance to attract new talent as compared to their competitors. By hiring millennials on an independent contract, employers are able to select the best talent from a diverse pool of workers. This is because the gig economy provides employment prospects to skilled professionals from every sector of the economy such as minorities, women and people from developing nations.

Labor plays a huge role in the operational and productive potential of a company. Hence, hiring top of the line independent workers will increase an organization’s productivity which ultimately helps employers earn money.

 

  • On-Demand Availability

Both small and large-sized businesses have fluctuating employment demands throughout the year. Obviously, more employees are needed during peak seasons. One great advantage of the freelancer economy is that you can hire individuals on hourly rates or fixed wages for specific projects, gigs of shifts. This set up enables businesses to easily get temporary workers on demand for the peak seasons without going through the hassle of hiring full time employees. Again, this saves companies a lot of extra costs and enables them to take advantage of expert professionals during crucial times.

 

  • Timing Benefits

Time is of the essence when you are trying to run a successful business. One of the major benefits of the gig economy is time-saving. Hiring a traditional employer takes a significant amount of time – from sending out vacancy flyers and ads to bringing a new employee on board, it can take weeks or even months. However, hiring a temporary worker is a more convenient and time savvy option. Employers can use the saved time on more crucial business matters and decision making which will prove to be very fruitful in the long run.

 

  • Entrepreneurial Prospects

The gig economy is an entrepreneur’s dream platform because not only can they maximize their resources but it also helps them create a work-life balance. Entrepreneurs and start-up owners are generally short on resources so they tend to take up all the responsibilities and tasks themselves. However, hiring workers who participate in gigs can be very advantageous for entrepreneurs. They can easily enter into small-scale relationships between workers for specialized tasks at reasonable costs and lay them off as the project is complete. This allows them to hire field experts at a good rates which enhances both monetary and implicit resources.

 

  • Wide Range of Skillset

The growing gig economy is continuously changing the workplace and giving employees more control and flexibility. Hence, the dramatically changing workforce market is becoming so competitive that full time employees are also looking for other arrangements to increase their income. Therefore, employers can pick and choose from a huge range of skillset. It does not matter who you are looking for, in the gig economy, you will find workers for every job and from different career paths – freelance writers, designers, consultants, taxi drivers, hosts and even dog walkers! Hence, it serves as a one-stop-shop for all employers where they can easily find any type of worker easily and cost-effectively.

 

Employers Are Thriving In Gig Economy

As the labor force and workplace continue to evolve, more and more employers are adopting an on-demand work arrangement which gives them more options for who and how to choose as an employee. By hiring remote workers, employers are saving valuable resources like time, money and energy to invest in the more important areas of a business – finance, strategy and decision making.

With so many online websites and apps for freelance workers, it has become fairly simple to find people who genuinely want to work and earn money. One such reliable platform is ShiftPixy. ShiftPixy is a staffing platform for employers to connect with the highly qualified and trained temporary workforce. Through ShiftPixy remote workers can find flexible working opportunities from reputed business operators. It is a safe and useful area where both the labor force and business operators can connect, communicate and engage in dynamic job arrangements. Hence, ShiftPixy makes hiring reliable and skilled workers easy, efficient and cost-effective to help employers thrive in the gig economy. What are you waiting for? Get ShiftPixy and start hiring!