Freelancing had been a way of life for many people before the Covid-19 pandemic. However, the pandemic accelerated the growth of the gig economy. As a result, in 2020, about 2 million Americans tried freelancing for the first time.
Therefore, it’s no surprise that there was a 33% growth in the gig economy that year. With the mass unemployment that came with the pandemic, freelancing quickly became a norm.
As such, it only makes sense to be up-to-date on the latest freelance and gig economy trends. As a new or experienced freelancer, you need to look ahead and find out what the future has in store for the gig economy.
What is the Gig Economy?
Also referred to as the sharing economy, the gig economy refers to the presence of independent contractors who provide freelancing services as a job. So, instead of having a traditional, full-time job, freelancers offer their services on-demand as short-term tasks.
In this economy, there are workers for everything. From personal transportation (like Uber, Gett, and Lyft) to food delivery (like Grubhub, Seamless, and DoorDash), writing, and photographing. So, workers get paid when they complete a “gig,” which may involve completing a ride, making a repair, writing an article, etc.
With this diversity, the gig economy has made it possible for freelancing to be a full-time job. The only difference is you can choose to work once a day, once a week, or anytime you feel up to it.
A distinct feature of the Gig Economy is the room for flexible payment. This is made possible by liaising with finance as a service platform.
The Attraction to Gig Economy
About 59 million people are involved in the Gig economy in America alone. This large number of people can make you wonder what the attraction is to the gig economy.
Could the pay have something to do with it? You bet it does. But it is not just the pay, but how the payment is made. The gig economy typically allows workers quicker access to their earnings. So, gig workers get paid per task rather than getting their wages at the end of the month.
Another advantage is the flexibility and control freelancers have over who they work for, when they work, and their work rates.
Businesses can also benefit from hiring freelancers. Here are a few of the pros:
#1. Having a structure without a structure
Every business needs a rhythm to function. There must be a regular pattern of doing things. However, some tasks are only required once in a while. In such instances, there is no need to hire a full-time staff. Instead, they can hire a freelancer to complete those tasks when needed.
Also, businesses no longer have to worry about getting a workspace in the gig economy. The workers can work remotely from anywhere in the world. They do not even have to be in a designated structure or building to accomplish tasks.
#2. It is cost-effective
Any extra cash, no matter how small, is good for business. For example, companies can save money on insurance benefits, bonuses, etc., by hiring workers on-demand instead of getting full-time employees.
The gig economy takes away the lengthy recruitment processes businesses have to undergo before hiring staff. Companies can also change workers whenever they find a better or more affordable freelancer. There’s no contract binding a worker to a business.
The Latest Trends in the Gig Economy
Some of the latest trends to watch out for in the gig economy include:
#1. The gig economy continues to grow
Freelancing has grown so much over the last few years. And as long as technology keeps evolving, so will the gig economy. In fact, it is believed that by 2023, more than half (52%) of the US workforce will be in the gig economy. It is also predicted that there’ll be about 86.5 million freelancers in 2027.
For businesses, these statistics point to the need to create systems that cater to the needs of freelancers. One such need is getting instant pay after each task. Catering to these needs will improve productivity and commitment in freelancers.
#2. Gig jobs as the main jobs, not side hustles
More people are beginning to see the advantages of being in the gig economy. As a result, fewer people see freelancing as a part-time job pending when they get full-time employment.
In fact, even those who have physical jobs take up freelancing as an additional stream of income. This is good news for business owners. More willing workers mean more options to choose from. Therefore, companies will have more access to expert services on-demand rather than getting a newbie and providing him with complete training.
#3. Institution of a corporate gig economy structure
In the past, many people considered freelancing a blue-collar type of job. However, this is not the case recently. It is entirely possible to get executive members of companies in the Gig economy in the near future.
What’s there to stop it if adequate security details are put in place? You can own a whole brand without a single architectural structure.
#4. Introduction of Employment Laws in the Gig Economy
The line between freelancers/independent contractors and employees is blurring gradually. If this distinction becomes fully erased, freelancers will get to enjoy certain benefits that full-time staff have. This may require businesses to hire legal services.
#5. Formation of Regulatory Bodies
Although there are no laws enacted to govern the Gig Economy, certain platforms have taken up regulatory roles.
They already act as middlemen who guide different activities in that sphere. For instance, finance-as-a-service platforms regulate payment processes and reduce the risk of fraud. So we can look forward to more improvement in that aspect.
The freelancing and Gig Economy definitely have some advantages over regular employment. As a business, you can get the experts you need with the click of a button.
However, to ensure their productivity, you’ll need to keep them happy with quick and easy payment plans. Fortunately, there are various Gig Economy payment options such as:
- accommodate the payment needs of the freelancer, and
- give room for what suits the needs of your company or business as well. As a business, you can have an instant load account. This makes managing the business finances easy.
Contact us for your gig payment solution.