If you’ve recently heard the term gig economy and are curious ShiftPixy has some tips about how it will change the way which individuals are employed, simply continue reading to discover valuable information on the recent growth of the gig economy.
4 Tips on understanding the growth of the gig economy:
By 2020 it’s estimated that 40% of workers will be contractors instead of salaried employees
While in your parents and grandparents generations the vast majority of individuals will have been gainfully employed in traditional salaried positions, by 2020 up to 40% of workers are expected to work for themselves as private contractors.
How does being a private contractor differ from being a salaried employee?
Private contractors are responsible for paying their own taxes, must pay for their own health insurance and are responsible for paying their own taxes. Private contractors will also be hired for short gigs and may work for several different companies in a single year, rather than working for a simple company.
However, there are a wide variety of advantages of choosing to become a private contractor, who completes short-term gigs. As an example, individuals who work as freelancers or private contractors will have far greater control over their work schedule and can pick and choose gigs which suit their lifestyle.
As a result becoming a private contractor may be a wise move for individuals who love to travel or who are raising a young family and appreciate the flexibility of being able to choose their own working hours.
There are countless benefits for businesses who are interested in hiring independent contractors
What are some of the key benefits for businesses who hire gig workers over traditional employees? Firstly gig workers are a great asset for small to medium-sized businesses who may not need to employ individuals on a long-term, regular basis.
Secondly, small to medium-sized businesses can also cut down on their operating costs by hiring gig workers who don’t require a health plan, a retirement plan or company run training programs. As another benefit, businesses can also free up valuable office space or choose to downsize their current office space as a direct result of choosing to hire more private contractors over traditional employees.
Short term gigs will only become more prevalent in the near future
If you assumed that individuals would be forced into becoming private contractors think again. While previous generations of employees may have preferred the security that working for a single business could provide as the Millennial generation enters the workforce over the next few years, it’s highly likely that Millennials will choose to become private contractors in an effort to maintain a healthy work-life balance and to take control over their working conditions.
Interestingly as a group, Millenials are far more comfortable with the idea of trying out multiple career paths or even following two career paths at the same time. Which makes them great candidates to become gig workers.
While the idea of a gig economy may be scary for some individuals, in reality, a gig economy will only offer new opportunities for innovative individuals and businesses to achieve high levels of success!