What Is a Gig Economy?

According to WhatIs.com, agig economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.”

Projections indicate that the end of the decade will see nearly 40 percent of American workers as individual contractors, freelancers or on-demand workers. This gig workforce understands the shift in paradigm – occupationally diverse workers who are spread out geographically and able to work wherever there is an internet connection.  The sole similarity occurs in how they earn money.

The nature of the gig economy makes it difficult to gauge how many workers fall under this trend, but the Bureau of Labor and Statistics measures them as both contingent workers or alternative employees when, in fact, they are different groups. Contingent workers do not have a long-term employment contract; whereas, an alternative employee may be an independent contractor.

3 Reasons for A Gig Workforce

Since almost 70 percent of the current workforce is under the age of 30, Millennials and Generation Z are driving this trend, which is increasing globally for several reasons:

1) Workers are attracted to the freedom and flexibility of working whenever they choose.

2) They can “try on” new skills or expand their current skills then move on to the next project.

3) Workers may like to telecommute vs. travel to an office site.

Moreover, these younger workers are demanding streamlined and expedient hiring practices. No longer do they want to comply with completing arduous applications, following up to confirm receipt, waiting for the phone call that often doesn’t come, traveling for in-person interviews, then waiting to get (or not get, in many cases) the courtesy of a reply.

On the other hand, employers must find and retain high-performing workers who have passed through vetting processes.  As gig employees tend to hold more leverage,  it becomes more difficult to meet business production goals and increases onboarding and training expenses

Since businesses have been relying for years on the traditional hourly or salaried worker holding a steady schedule, how does this trend change hiring practices? What challenges does it present to business?

Organizations will need to reframe their point of view that independent contractors are dispensable employees. As more and more contractors or gig workers will be needed to fill gaps to meet deadlines, they will be deserving of respect and consideration, especially as more and more of top talent evolves into the trend.

Proactive measures will help organizations deal with this trend. Working with a reliable staffing agency such as Lingo Staffing is one way to meet the growing need for vetted, talented gig workers.

About Lingo Staffing

Lingo is a full-service staffing firm dedicated to providing top quality services to its clients and its candidate pool. With extensive knowledge and experience in light industrial, administrative, and professional employment, Lingo encompasses the capabilities and resources necessary to help you get ahead.

Our experience and commitment to client satisfaction make us the perfect choice to manage all of your staffing needs. Our staff guarantees exceptional customer service with an expedient response time.

Our experts are located at an office near you: Virginia, Pennsylvania, Ohio, Tennessee, and Georgia.

Lingo, the language of On Demand solutions. Contact us at an office convenient to you.

 

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