Written by: Dawn Lee

What exactly is a gig?

In this time and age, gig work refers to any temporary job that can range from simple work such as administrative work to complicated projects such as app developments. These independent workers are available globally and utilized even by the biggest companies such as Google and Airbnb.

Employers tend to hire independent contractors or freelancers for temporary and flexible jobs in a gig economy instead of employing full-time workers.

Thanks to the shift to technology, things such as email and telecommunication has made work more flexible while shortening the distance between everyone in the world. And, people have more options and are no longer tied to their work desk with 9 to 5 jobs. With the rising demands of flexibility at work, the gig economy is the best place to achieve that.

Main drivers behind the rise of the gig economy

1. Rapid advancement in digital technologies

Thanks to the internet and advancement in technology, finding jobs have been made convenient and it has allowed people to work remotely from anywhere in the world. A company based in Singapore can easily engage a developer from India for a project while bigger companies can offer remote work to employees, giving them the flexibility to choose when they want to work. 

Furthermore, the introduction of digital platforms and apps have allowed companies to link directly to a gig worker or freelancer. Some of the more popular examples include Uber or Grab, which connects drivers with passengers or Airbnb, which connects hosts with people looking for a temporary abode.

2. COVID-19 pandemic

And then came the COVID-19 pandemic that caused the huge spur in the gig economy due to people losing their jobs and many turned to the gig economy to supplement their lost income. However, these gig economy workers have become essential as they provide a sense of normality by keeping services available for the mass market. From food delivery to online coaches, these people have offered assistance during times of need, especially since there were several lockdowns worldwide. 

Today, it is very common to see and hear individuals working as full-time employees while being a gig worker. The gig economy has allowed the world to approach work in a whole new manner and giving rise to certain benefits.

For most people, it is easy to enter the gig economy as there are almost no barriers to entry. Depending on the skillset you have, you can then choose from a wide array of projects and work available while working according to your own schedule, allowing for a better work-life balance. Furthermore, you can even take on projects from around the world without having to worry as you can work remotely from wherever you are.

A good thing for companies

According to research from Garter, many enterprises have been replacing full-time employees with non-permanent workers since the beginning of the coronavirus pandemic. This contributes to increased flexibility and is a cost-saving measure.

Many companies are embracing the growth of the gig economy due to the reduction of hiring cost as it reduces the need for tedious hiring processes or outsourcing to other countries. Furthermore, with the acceleration of digital transformation, many companies will require to get up to speed with new implementations and projects. Instead of taking months and years to train an employee, many companies turn to hire contract staff instead as these people already have the necessary skill set to work on the projects. 

A cause for concern

However, with such growth in the gig economy, there are some concerns as well. According to Gigworker, 60% of the workforce will be independent professionals by 2027, with 94% of employees stating that they would consider non-traditional employment. 

Source: Gigworker

Additionally, based on another survey conducted by Mercer, 77% of executives believe that freelancers and gig workers will replace full-time employees substantially in the next five years. While it may not affect every single person, everyone must prepare themselves to adapt to these upcoming trends so as to protect their livelihoods.

This trend may cause an imbalance of a company’s workforce, together with many other implications for core Human Resources functions. How can employers continue to ensure the essential operations and administration functions continue to run with contractual/project-based workers taking up the majority of the organisation’s headcount?

On the other hand, employers will need to rethink how the Employee Experience will be like facing a pool of gig workers in the future. How can a company keep their staff engaged and motivated while being productive in their work if they are independent of the company?

As we move towards the future, we may observe that the gig economy continues to grow and become an efficient working model that may leave traditional work arrangements in the dust. But, with the right balance, we believe that companies will find a way to integrate the two working models to scale their businesses to greater heights.

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