The Future of Business: Contract Workers & The Gig Economy
Marco Petersen
★ Impact Player building value for business owners | Business Owner with The Alternative Board | Trusted Strategic Advisor | Entrepreneur ★
Hello to my network.
The dynamics of running a business have evolved remarkably over the last decade, due to a stunning onslaught of technological advancements, a change in buying preferences and of course global economic trends due to the pandemic. One of the biggest transformations, which can be attributed to the convergence of all these factors, is what we are seeing in the employment sector. As a business owner today, who and how you hire is quite different than what it was just 10 years ago, with the standard W2 full-time employment model giving way to contract, freelance and one-off project work. Yes, we are living in a “gig economy”, a labour market characterized by the prevalence of short-term, freelance, and temporary jobs that sometimes found through digital platforms or apps.
According to a statistical survey conducted by University of Chicago’s National Opinion Research Centre, there were approximately 20 million independent contractors, consultants, and freelancers working in 2013. Today, that number has nearly tripled to about 58 million Americans who consider themselves independent workers (McKinsey). This trend is not just in America but the world over. It is estimated that the gig economy accounts for up to 12 percent of the global labour market.?
While many chalk up this dramatic jump to workers’ preferences for work-life balance and other personal considerations, that is only half the equation. Business owners have a lot at stake too. And although this new employment dynamic can be challenging for employers, it may also provide some very substantial benefits for those looking beyond the standard employment model.?
Why Business Owners Might Hire Gig Workers
In today’s gig economy, contractors are often hired on a project basis. This talent model offers numerous advantages to business owners, particularly considering the continued volatility in the employment market.
There are a number of reasons why hiring contract workers just might make sense to an SMB owner.
The Pros of Hiring On-Demand Workers:
What Is the Downside of Contractors?
While there are clearly plusses and opportunities related to supplementing an organization’s workforce with gig or contract workers, business owners also face some challenges when considering non-traditional talent options.
The Cons of Hiring Contractors
While there are pros and cons surrounding the gig economy and on-demand work model, this business trend has been evolving for years and isn’t expected to go away anytime soon, if ever. ?
I trust this article proved valuable.
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Warm regards,
Operations Manager | Business Developer | Fostering Business growth by building trusted Client Relationships
11 个月Interesting
I help organizations in finding solutions to current Culture, Processes, and Technology issues through Digital Transformation by transforming the business to become more Agile and centered on the Customer (data-driven)
11 个月Thanks for sharing this valuable information, Marco Petersen
ZPE-Legrand | Serving Customers
11 个月Thank you for the post!