The gig economy isn’t going anywhere. It’s not a fad. If we’re honest with ourselves, the writing is on the wall: industries are transforming overnight thanks to how much the impact this new medium is segmenting the market thanks to breaking out specialized pieces instead of taking an “every man” approach to getting things done.
From ordering food to getting tires put on your car, staffing up for a big party, a black-tie event, or catching a ride to the airport, the gig economy is redefining how we do pretty much everything.
For small businesses, the gig economy is the secret weapon hiding in plain sight. More folks are freelancing than ever, people are making a living by utilizing their specialized skills: if you run a small business, you’d be hard-pressed to find a need you couldn’t fill.
Because people are striking out on their own when things get slow, they’ve got options — they’re picking up gigs. 65 million people are jumping into the gig economy, and the number is only increasing. At Adia, we’re seeing more and more folks looking to pick up hours, and it’s not the people you think, either.
The gig economy is the future
From our research talking to the Adia community (we’re an on-demand staffing company), a lot of our users already have full-time jobs. Still, because life is expensive, they’re always looking to pick up a gig here and there to lessen the blow of a car note or to save for that vacation. This works out for businesses both large and small because a lot of these workers have specialized skills, and those skills get utilized at a rate that’s affordable because it’s not full-time.
There’s a segment of the market that’s ready to go. That’s where the strength of the platform matters because it can be parsed, championed, and utilized. If you’re running a small business, the model is a secret weapon because it works for the bottom line — not against it.
One of the biggest hurdles in small business is wasted money and, in some cases, the effort.
Because the gig economy is new, this frontier is a proving ground for evolution rather than what’s been in generations past. Why does this matter? The easy answer: hiring.
The next frontier of small business
Think about it this way: instead of slapping a “Now Hiring” sign in the window, you can try before you buy. Bringing on someone full-time is costly, but what a lot of companies are doing instead is utilizing the gig economy, because services are broken out. Need someone to come in to mix drinks for a special event? Easy, there’s an app for that. Need a set of hands to move boxes just for a day? There are services implicitly for movers.
Managers can use apps to take on tackle scopes of work in specific timeframes. Because of the tight labor market, this is also helpful. These people who come in, crush and leave, that’s baked into the format — these are folks who don’t want to work a full-time gig, and that’s ok. It’s affordable because instead of paying all of the bills that come along with help, it’s indicative of the generational divide: we’re no longer beholden to where we work. We can come and go as we please, if that’s our desired intention.
How to take advantage of the gig economy
According to Forbes, companies are saving at least 20% in just overhead labor costs by utilizing the gig economy, while still meeting productivity demands to remain competitive. The same article also cites that 87% of millennials want to work on their schedule and guess who’s currently making up the majority of the workforce — as well as management positions. Companies working with gig workers can dip into a diverse pool of talent, that reflects current market situations, but also champion diversity and inclusiveness thanks to the nature of apps sending people the boss never expected.
Retailers will be the biggest adopters come the holiday season, especially when it comes to labor, or hourly help with positions like picker-packers and stockers. Retailers need contingent workers to help fill and take orders. These roles are attractive because, typically, the worker is looking for supplemental income. Just don’t forget that the people you think are driving the gig economy, aren’t. Don’t sleep on the folks who are utilizing their skills to supplement their income.
A lot of skilled professionals are working the extra hours and putting in the time. That’s who could be filling roles, so you never know who wants to stock shelves, or offer a ride, or work your black-tie event.
One thing we’ve seen recently is that the small business world are fast adopters of the gig economy thanks to everything happening at light speed by the touch of a finger swiping across the screen. There are so many platforms, so many ways for businesses to get ahold of the new economy, does your small business have what it takes to grab ahold of the reigns?
