The way we work is changing fast. Instead of more stable and traditional employment, some folks are diving into the gig economy. The rising popularity of the gig economy has led many former full-time employees to start working on a more contractual basis with multiple clients, as opposed to being tied to any individual company.

Businesses need to change how they work to keep up. Contractual work and gigs have entirely different expectations from traditional employment. These changes may not be something businesses are used to, and this could lead to unnecessary friction. Let’s dive into this gig economy revolution together and see how businesses are adapting to this fascinating new landscape.

What’s The Gig Economy?

A gig is typically slang for short-term jobs or freelance work that’s either informal or done as needed. The gig economy describes the free market system that enables this type of labor.  Historically, the gig economy was how people made their money in the pre-industrial era. 

After all, back in those days, people had to take whatever jobs they could get to make it through life. In that regard, those folks from back then aren’t so different from people in the gig economy now. If one thing is consistent throughout history, as long as there are jobs, there will always be someone willing to do it for a price. Jobs like couriers, tradesmen, carpenters, and musicians were examples of gig-style work.

Why is the word gig used?

If you’ve ever wondered where the word gig even came from, it’s got a surprisingly complicated history. The term is said to have come from as early as 1905, coined by jazz musicians to describe the type of on-demand work they were doing. According to jazz musician Eubie Blake, his band leader used the term and it just stuck ever since. 

As for why the word gig? Honestly, nobody truly knows. Theories circulate that it originated from a word for dance in Italy called “gigue”. Words are interesting like that. Gigs are a fundamental part of the music world, and it’s interesting to see the word evolve to cover the entirety of the job market.

Evolution of the gig economy

For most of the post-industrial era, folks worked in regular jobs with set hours and salaries. This was a result of corporations wanting to have more control over their workforce. But things started changing with the gig economy making a resurgence, especially in modern times. Instead of sticking to one job, people began doing different gigs, like delivering food or freelancing online. This shift gave them the flexibility to choose when and how much they wanted to work. It wasn’t just about the usual 9-to-5 grind anymore.

As technology grew, so did the gig economy. Apps and websites made it easier for people to find gigs and for companies to hire them. For example, look at how popular the likes of Ubereats have become. Back then, delivery drivers used to be something hired specifically by the restaurant in question. Nowadays, Ubereats has couriers who will buy from any restaurant that supports Ubereats, simplifying the food delivery economy.

Here’s another example: Fiverr. Fiverr is like an online talent marketplace where freelancers show off their superpowers. It’s a hub buzzing with creativity, where people offer all kinds of skills, from crafting nice tunes to designing eye-popping logos. Whether you need a catchy catchphrase for your new ad or a digital artist to bring your ideas to life, Fiverr’s the spot to find just the right freelancer for your gig.

As the name implies, most of these tasks start at five dollars. While stuff like artist commissions and writing are expected, there is also some really weird stuff on Fiverr, showcasing how diverse the gig economy has become. For example, some people make “shoutout” videos while playing some sort of character.

Need an Elvis impersonator to wish someone a happy birthday? You don’t have to go to the local mall and find them at some obscure turnstile. You can probably just look them up on Fiverr and hire them for a virtual message.  Maybe you need someone to voice over the U.S. Constitution as Daffy Duck? There are hundreds of voice actors willing to do that.

It’s a weird world, but the truth of the matter is that these weird jobs are only possible thanks to the gig economy. That said, it’s become a two-way street—someone needing a task done could easily find someone willing to do it. This opened up opportunities for all sorts of jobs that didn’t fit the traditional mold. People could be their boss and work on their terms.

Nowadays, the gig economy is still evolving. More and more industries are tapping into it, from food delivery to creative work. It’s not just about making extra cash; for many, it’s a full-time thing to juggle multiple jobs. As this way of working becomes more common, it’s changing how businesses and workers see jobs and work, making flexibility and adaptability key in this new landscape.

Why should businesses care about the gig economy?

Businesses have a lot to gain from diving into the gig economy. Firstly, it’s all about tapping into a vast talent pool. Instead of just relying on in-house skills, companies can access a global marketplace of diverse talents and expertise. This means they can find specialists for unique projects without the need for long-term commitments. Whether it’s a digital marketing whiz or a coding genius, the gig economy opens doors to a wide array of skills that might not be readily available within the company.

Secondly, the gig economy brings flexibility to the table. Businesses can adapt to changing demands more swiftly by hiring freelancers or gig workers when there’s a sudden surge in work or a specific project that needs extra hands. This flexibility also means cost-efficiency. Companies can save on overheads like benefits and office space by bringing in gig workers for specific tasks instead of hiring full-time employees.

Lastly, embracing the gig economy allows businesses to stay agile and competitive. The market is evolving rapidly, and companies that can quickly assemble the right team of specialists for different projects gain an edge. It’s like having a dynamic toolkit where you pick the perfect tool for each job. This agility helps businesses innovate, deliver projects faster, and adapt to the ever-changing landscape, giving them a competitive edge in today’s fast-paced world.

Why would someone want gigs over stable employment?

Gigs offer a flexible way to work. Instead of a set schedule, you decide when and how much you want to work. This flexibility is a big draw for many because it allows them to balance work with other aspects of life, like family time or personal pursuits. You’re not tied to a fixed routine, giving you more control over your schedule.

Moreover, gigs can be a gateway to new experiences. When you’re not locked into one job, you can explore different gigs and industries. This variety keeps things interesting and lets you learn new skills along the way. It’s like dipping your toes into various pools instead of swimming in the same one every day.

Financially, gigs can be pretty rewarding. Some gigs pay well, especially if you excel at what you do or find high-paying opportunities. With dedication and smart gig choices, some people find they can make more money than they would in a traditional job. It’s about hustling smart and making the most of the opportunities that come your way. That makes gig work feel more like a merit-based career than somewhere tenured, though this is subjective.

It’s important to understand these benefits whether you’re a business owner or someone who’s considering entering the gig market. The gig economy presents unique opportunities for flexible and solid growth marketing, where agile campaigns and targeted outreach can effectively reach and engage geographically diverse, tech-savvy audiences.

How businesses are adapting to the changing landscape

Here are some of the ways businesses have adapted their structures and cultures to the gig economy. 

Asynchronous Communication

This refers to communication that doesn’t require immediate responses. Communication is a key aspect of gig work. Some gig hires might not be too familiar with your work culture, so it’s important to adjust to each other’s schedules. Asynchronous communication is a great way to keep in contact without unnecessary pressure. 

It allows gig workers to communicate and collaborate without being online simultaneously. Platforms like emails or messaging apps enable this, letting workers engage when it suits them best, and promoting flexibility. This doesn’t mean not setting deadlines. It just means trusting in the hire to do what needs to be done when it needs to be done.

Flexible Schedules

Companies offer gig workers the freedom to set their work hours, letting them balance their personal lives and other gigs. Asynchronous communication is one thing, but knowing when each other’s schedules intersect is essential for efficiency. This flexibility enables workers to choose when they work, enhancing their control over their schedules.

That said, make sure these flexible schedules aren’t random. Always communicate to the hire the timeframe that they need to be reachable, especially on projects that require a tight deadline. That said, don’t start to pressure them the same way you would a full-time hire. Gig hires very likely have other responsibilities to attend to, and stepping on those toes might lead to friction.

Tech-Forward

Businesses are leveraging technology, using apps and online platforms to manage gig workers more efficiently. These tools streamline task assignments, progress tracking, and communication, making work smoother for everyone involved. As noted with asynchronous communication and flexible scheduling above, gig work needs to be monitored just right. While the gig economy revolution reshapes the traditional work landscape, savvy businesses are turning to innovative strategies through AI-driven insights to adapt and thrive.

The tech behind flexible and accessible inventory financing solutions can be game-changers, enabling workers to purchase necessary equipment and supplies without upfront costs, ultimately promoting efficiency and productivity.

Pay Transparency

Businesses are more upfront about payment rates and processes these days. Back in the day, a lot of companies got away with unfair wage gaps, and truth be told, it’s still an issue now. However, the gig economy has helped in keeping more companies honest, because they don’t have the same investment into the company as a full-time hire would.

That means companies no longer have total power over knowledge of salaries. Gig clients have the freedom to turn offers down given these clients aren’t hitched to just that company. This means more companies provide clear information about how much workers will earn, ensuring fairness and avoiding confusion.

Worker Support Programs

Some companies focus on gig workers’ well-being, offering resources like mental health services or access to assistance programs. This support aims to enhance workers’ experience and ensure they feel valued. Finance management workshops are also another good program to consider. In the fluctuating income landscape of the gig economy, mastering the art of budgeting and creating a financial buffer are crucial skills for navigating financial stability.

Alternatively, guiding financial planning, budgeting, and saving can be crucial for gig workers who might face irregular income streams. Some companies may even offer limited healthcare benefits or facilitate access to affordable healthcare services for gig workers. Regardless, the importance here is 

Upskilling Opportunities

Some companies provide training or resources for gig workers to improve their skills. This helps workers access higher-paying gigs and advance in their careers. As technology evolves, providing training on relevant tools and platforms helps gig workers stay competitive and efficient in their work.

There’s also the potential for some career guidance. Offering resources or counseling to help gig workers map out potential career paths or identify areas for skill improvement can be invaluable. Not to mention, showcasing this level of care and support towards gig workers might push them to pursue future projects with the company again. 

Networking Environment

Businesses create communities or networks for gig workers to connect, fostering support, sharing experiences, and providing a sense of belonging in the gig economy. One of the common criticisms of the treatment of gig workers is that they are seen as “not as important” to the company.

While they don’t hold the same responsibilities as full-time employees, they wouldn’t be hired if they didn’t provide an important service. Networking opportunities allow businesses to expand their influence subtly and helpfully. After all, getting gig workers to work with your partner companies helps build a strong professional network.

Clear Policies

Companies must establish straightforward guidelines and rules for gig workers. Clear delineation of tasks and responsibilities ensures gig workers understand what is expected of them for each assignment or project. These policies outline expectations, roles, and responsibilities, avoiding misunderstandings.

For example, how much output, if any, they are expected to provide in a month is part of these policies. Let’s say a freelance writer needs to be able to fulfill a quota of 15 articles per month. This shouldn’t be left to oral agreements. Make sure these are noted down in writing, and signed in whatever contract the gig worker needs to sign.

Inclusivity Initiatives

Businesses, now more than ever, strive to make gig work accessible to everyone, regardless of background or identity. Companies actively engage in outreach programs to attract a diverse pool of gig workers from different backgrounds, communities, and identities. 

It’s important to work to remove barriers and provide equal opportunities for all.  Part of this is by simplifying onboarding processes and minimizing unnecessary requirements or qualifications. This allows a broader range of folks to access gig opportunities.

Open  Feedback

Some companies encourage gig workers to share their thoughts and concerns in the same way they would with full-time employees. Oftentimes, there’s an unfortunate reputation for companies to treat freelancers as disposable. That’s why open feedback is another way for professionals to share feedback.

This feedback helps companies understand workers’ needs, make improvements, and build stronger relationships. If nothing else, it’s good to remind both the freelancer and the employer that people are people. 

How big is the gig economy?

It’s one thing to know what the gig economy is and why people are interested in it. It’s another thing entirely to see the cold, hard facts that support this massive industry.  As of 2023, 73.3 million freelancers are working in the USA, and it’s estimated this number will only grow larger by 2024. 

For context, the number of full-time employees as of October 2023, number around 134.5 million. That means the number of freelancers is half as many full-time employees, and these gaps may get shorter and shorter. There are a lot of factors as to why this gap is slowly shortening. Back at the start of January 2023, there was a huge dip in full-time employees as over 3 million people either quit their jobs or were laid off. The elephant in the room is the cause of this sudden shift in employment: the COVID-19 pandemic.

The effects of the COVID-19 pandemic on the job market

The COVID-19 pandemic shook up the job market big time. Lots of businesses had to close or cut down, leading to job losses for many folks. Industries like travel, hospitality, and retail got hit hard, with layoffs and furloughs becoming common. Companies had to adapt fast, shifting to remote work where possible or making tough decisions about their workforce.

On the flip side, some industries boomed. Online shopping soared, leading to more jobs in delivery and e-commerce. Tech companies also kept hiring, especially for roles supporting remote work. But overall, the job market got super competitive. More people were looking for jobs, but there were fewer openings. Graduates faced uncertainty too, with internships and entry-level jobs becoming scarce.

The pandemic also changed how companies hire. Virtual interviews became the norm, and remote work became more accepted. Skills like adaptability, digital literacy, and the ability to work remotely became essential. It’s been a rollercoaster ride for the job market While some sectors struggled to adapt to these big changes,  others ended up thriving, creating a whole new face for the business in the process.

The gig economy during the pandemic

It’s easy to see why gigs became extremely popular during these sudden shifts. So many people lost their jobs, and thus, had to find work wherever they could get it. Because corporations couldn’t hire everybody, some people took it into their own hands and became their bosses. Of course, the gig economy during the pandemic wasn’t a romantic era.

It was incredibly difficult for billions of people. While the gig economy can be very lucrative, people were contending with each other in one of the most competitive eras in modern human history. There was nothing malicious about it, it’s just the unfortunate reality brought upon by extreme circumstances.

That said, it wasn’t just the economy or the workers struggling. Some companies were finding it hard to adapt to the gig economy. After all, full-time employment brought a certain level of control and security, especially in terms of cybersecurity.  Remote work had system  vulnerabilities that were hard to adjust to.

Moreover, quarantine meant most of these gig opportunities would have to be done remotely. This is a lot of pressure and trust on both sides, especially on a short-term contract. Still, it’s not all doom and gloom. The pandemic did force everybody to adapt, and in 2023, businesses (and workers) have taken steps to have a better gig-based relationship. 

Final Thoughts

The gig economy has changed how folks work and how businesses run the show. Looking back, it’s clear that gig jobs started small but boomed fast, becoming a big deal worldwide. Businesses had to learn to roll with the changes or get left behind. The pandemic simply accelerated these changes in ways that few could have ever expected. 

They figured out that being flexible was key—shifting gears quickly and using tech to connect with freelancers and make things run smoother. One thing’s for sure: adapting to this new way of working was the ticket to success. Companies that nailed it were those that stayed nimble, used tech smartly, and made sure everyone got a fair shot at gigs, no matter who they were.