A growing number of people are joining the ‘gig economy’ and working on a job-by-job, freelance basis, giving them the flexibility to work whenever and wherever they want. In 2016, nearly 53 million Americans were freelancers. That’s 34% of the US workforce! That number is expected to jump to 43% by 2020. Although many entrepreneurs may see varied impacts and opportunities open up to them, it’s important to understand how to get the most out of the gig economy.
Introduce a more flexible workforce
With more Millennial and Gen Xers moving to independent online work, we’re seeing a rise in a generation embracing the gig economy – craving the freedom to choose their work, pay and place of work. As more highly skilled, connected and mobile workers enter the gig economy, entrepreneurs are more likely to utilize these workers by blending full-time, permanent employees with freelancers and creating a flexible workforce which is adaptable to business challenges and opportunities.
The arguments in favor of using the gig economy are becoming increasingly compelling. With the nature of work changing and a demand in flexible working, hiring freelancer’s benefits business owners as they’re able to flex the workforce in ways that permanent employment simply doesn’t cater for. Because gig workers offer more flexibility between scheduling and getting the choice of accepting new projects, we are seeing quicker turnarounds from gig workers rather than full-time employees.
Develop a broader workforce
When just beginning a business, learning to budget and surviving on said budget plays a big part in success. Payroll is often a large chunk of a business’ fixed costs, although utilizing the gig economy and hiring freelancers afford businesses flexibility – as well as the opportunity to turn fixed into variable costs.
Many small businesses often don’t require full-time departments such as marketing or IT, so contracting these jobs out to freelancers on a case-by-case basis is a good way to help reduce overhead costs and remain agile. This level of flexibility means that entrepreneurs can quickly expand and contract their workforce according to demand.
Closing the skills gap
Small businesses face the challenge of, either not having enough staff for every job, or having to hire more for the job. This causes more money to be spent on full-time employees for a part-time gig, in steps the gig worker who the small business owner can hire for the single task – saving time and money.
Hiring freelancers gives small business owners the flexibility to manage the peaks and troughs of demand, as well as the ability to bring in someone who can hit the ground running during busy times. Building relationships with seasoned freelancers can add value to growing businesses, helping to inject new ideas and scope out the needs of a project.
Have the right tools for the job
The gig economy is successful because people have the right technology at their fingertips to run a side job, or hire a part-time worker for a project. From video conferencing to virtual phone systems, these technologies are making it easier to collaborate with teams and freelancers on a project without physically being in the same room, or even the same state.
With a significant rise in the mobile workforce and more entrepreneurs building their businesses around remote cloud employees, technology is empowering more distributed teams, collaboration and connectivity.
Shake up your routine
It’s important to embrace the gig economy as it is here to stay. Entrepreneurs now have the ability to grow their businesses by benefiting from the affordability, accessibility, and flexibility of contract workers. Whether a freelancer or small business owner, the gig economy has its advantages such as increasing productivity, without the 9-5 work schedule that everyone dreads.
The gig economy allows you to create your own schedule, and work when you want, increasing productivity, employee happiness, and overall better project outcomes.
