With the economic downturn, companies are finding ways to maintain their output despite leaner teams. We explore the gig economy as one of those ways.

Retrenchment started late last year, and while expected, the year opening with tech giants streamlining their workforces sent shockwaves rippling wide. But even with leaner teams, the show must go on; KPIs must be minimally met, or exceed expectations.

While not a permanent solution, the gig economy could be the way for teams to navigate an increasingly rough economic climate with a downsized team.

WHAT IS THE GIG ECONOMY?

It’s impossible to not have come into some sort of contact with the gig economy, especially within the last few years.

Gig workers go by a bunch of aliases – freelancers, fractional workers, contract employees. The gig economy is a flexible market system where companies enlist independent workers for short periods of time through online platforms that support these exchanges.

(Photo by Viktor Avdeev on Unsplash)

Gig work hasn’t always had the best connotations, with the forefront of the image being labour-intensive trade jobs cemented by the establishment of TaskRabbit, Uber later on, and Grab in Asia. Millennials and Gen Z made up the majority of the gig economy, and the subversion from the usual corporate nine to five made it a space for exploration for younger, seemingly inexperienced people.  

Especially in Asia, gig work was for the flighty liberal, and an unsustainable way to earn.

CHANGES IN THE PERCEPTION OF GIG WORKERS

However, the tides turned when older professionals found it a way to supplement income and explore skillsets outside their daily nine-to-five. The pandemic catalyzed the global switch with the realization of the different perks of being self-employed. A report by daVinci Payments (now rebranded to Onbe) calculated 23 million people joined the gig economy in the US in 2020 alone. That number is estimated to grow to a stunning 90 million by 2028.

In a study done by Upwork in 2020, those above 55 years old consider freelancing a good segue into retirement. The study also found that about 2 in 3 people would consider the switch to working independently in the future.

PROS OF USING THE GIG ECONOMY

The gig work community has grown significantly after the peak of the Mass Resignation, Covid, and recent company reorganizations, millions more have defected to the gig economy.

• Flexibility

Hiring per project gives you freedom and flexibility. Given that they work on a short-term basis, companies can engage them during peak season, or if there are projects that require extra hands, and save money when there is less to do.

• Newer perspectives

Fresh eyes never hurt anyone. While having a team full-time does offer more stability, teams especially those working on the creative side of the brand often hit walls and face ideation burnout. Inviting someone else on a project basis can help to revitalize the team and start up their creative engines again.

• Diversity

Every company wants someone who can do it all. But a jack of all trades is a master of none. Hiring gig workers can pull in people with more in-depth knowledge about a specific subject. This can diversify your workforce and also bring in new ideas.

With the gig economy on a growth spurt, and growing away from the see-saw between incompetent amateur or decorated industry veteran, there has never been a better time to go exploring. At least for now, the gig economy is a solution to short-term manpower problems companies can look at.

And we are more than happy to help you do that. 

Quest connects you to gig workers in a myriad of industries. Come chat, we’ll get you sorted!