Benefits of The Gig Economy For Businesses

Gig Economy For Businesses

Gig work is known as project-based assignments carried out by individuals working as independent contractors or freelancers. It became common during the COVID-19 Pandemic. It is important to note that the movement toward the gig-dependent economy is one that precedes the COVID-19 pandemic. Today blogpost will stress the important benefits of the gig economy for businesses.

Businesses are finding this beneficial as they get access to skilled labor at a period when hiring full-time workers has become very challenging. Gig workers benefit from this relationship as it offers flexibility and continued access to novel opportunities that might otherwise not be available in the contemporary working environment.

The Gig Economy

The economy is now offering gig workers the benefits of either working full-time or part-time. In 2019 BCG Henderson group reported that 40% of firms are looking toward hiring more gig workers in the years ahead. Presently a lot of people prefer working remotely.

According to recent statistics, gig workers get to add an average of $624 to their income on a monthly basis. The aforementioned prices are for services that will take very little effort to handle to completion. Examples of these services are food delivery, ride-sharing, and running errands.

The gig economy makes it possible for companies to offer their services to customers at a low cost. This method has beneficial installations where companies are required to have professionals like consultants for a certain period of time. 

Read Also: Why Your Recruitment Strategy Is not Working

The gig economy system gives freelancers the opportunity to show their skillset, set their price, manage their workload, and also choose to either accept a job or not. Freelancers can decide to work from any location in the world, this is however dependent on the role.  Big businesses like Deliveroo and Uber are good examples of companies that form part of the gig economy. A good number of innovative companies such as PWC and Shell are switching to the gig economy.

Below Are The Benefits of The Gig Economy For Freelancers

Agility and Flexibility

Results from a recent study show that the “jobs of life” concept is no longer useful. Present-day workers are constantly reexamining their careers and are very willing to switch their domain or industry.  However, they discover the value of upskilling and reskilling to remain relevant in this talent-driven global market.  

Upskilling and Reskilling Potential

A finding from research by Udemy reveals that the road to upskilling is just about to kick start for many employees. In just 2020, 38% of employees across the world got upskilling training. In the gig, part-time contractors get to learn new skills, get listed for high profile jobs, and get employment benefits..

Learning by Doing

The gig marketplace is a hub of creatives individual, who are willing to offer their services to clients. This goes to say that a gig market is one that encourages learning by doing models.

The model affords users the opportunity to get to contribute their skills and expertise to the project. There is a lot of experience is gained here. Let’s sight an example with a tech company that intends to use content marketing.

To boost the awareness of their brand, generate leads, and f increase sales. The ideal talent for such a task is a freelance copywriter nevertheless the company decides to make this an in-house project and calls on the UX designers and developers with good writing skills to execute the project.

Developing content is something that isn’t foreign to them but this isn’t their area of training. However, these gig workers are gets an opportunity to express their writing skills and bring new ideas to the table.

Availability of High Demand and Specialized Skill Set

In the dynamic world we are freelancers are constantly reinventing themselves so as to keep up with the massive evolution of our workforce. They are usually more innovative and receptive to new technology as they gather a lot of experience`

Advantages of Swirtching to A Gig Economy Market Place For Businesses

The benefits of gig work aren’t just reserved for freelancers, companies also have a lot to benefit from. Below are the advantages of making use of the gig economy for businesses;

Cost Savings

Bringing on a specialist requires a business to invest its resources and time in sourcing a candidate, and carrying out screenings, before the offer acceptance stage. However, in the case of an internal gig marketplace, an experienced specialist is hired to take on the task. Such an employee has already passed through the screening process and passed the interviews conducted by the boards. Engaging your internal workforce to handle projects reduce the costs of hiring, onboarding, transfer of knowledge, and training.

Enhanced Talent Mobility

In a situation whereby a business has very robust talent mobility potential, such a business is more likely to retain employees, create versatile career opportunities, and save recruiting costs in comparison to its competitors. A gig economy marketplace effortlessly fits into the talent mobility paradigm.

Flexibility in Projects and Work Flows

Industry 4.0 is a model after which organizations show flexibility and adaptation to external circumstances. This switch can go a long way in can go a long way making businesses cope with uncertainty by offering flexible work schedules, an on-demand workforce, and agile project staffing. Such a system facilitates skills-based hiring and aids businesses in withdrawing from the traditional job description, paper qualifications, and track records.

Availability of High Demand Specialized Skill Set

In the dynamic world, we are living in, freelancers are constantly reinventing themselves so as to keep up with the massive evolution of our workforce. They are usually more innovative and receptive to new technology as they gather a lot of experience from making use of their specialized skill sets to work with a variety of different businesses. This is of immense benefit to businesses looking towards hiring applicants with niche skills.

The 2018 “Future Work Force Report: Hiring Manager Insights on Flexible Remote Work Trends” showed how skills are gradually getting to be more specialized and how this gap could be filled by gig workers. For example, gig workers are the best option for businesses in need of specialized skill sets such as data science, AI, robotics, and blockchain.

Cost-Effective Marketing Strategy

Noble Housed reported that 45% of the human resource managers employed gig workers to supplement their existing workforce. Quite a lot of business has cut down the cost of running their business by simply hiring gig workers.

It is no secret that office spaces aren’t exactly cheap. Freelancers have their personal working spaces in their homes, thus reducing the need to rent office spaces and maintaining stuff used for their job.

MostIndependent professional contractors would require a lower degree of supervision or training, which also lower the training costs. Additionally, it helps to eliminate costs of staff benefits such as retirement, paid sick leave, transportation, and other allowances etc.

Greater Recruitment Flexibility

A full-time or part-time employee knows he or she will work from 7 or 8 hours a day as the case may be. This is not the case with a freelancer as he or she gives the employer, the option of flexible manpower. For instance, you need a post removed from your office blog or social media platform. You can easily get that done by a remote worker that’s open to flexible working hours.

Having a good understanding of the freelance economy and embracing the gig revolution in the gig business is a great alternative to guarantee your goals of sustained growth, better output, and increased revenue for your businesses.