What is The Gig Economy? Pros and Cons

Back to Skills Directory

The gig economy is a relatively small but ever-growing way of earning money. In the USA, there are approximately 1.6 million gig economy workers - this makes up under 1% of the US working population. With more and more companies employing this model as their primary functioning mode, the gig economy is becoming a livelihood for more and more people around the world. 

What Is The Gig Economy?

The gig economy refers to workers who rely on freelance contracts and one-off jobs, as opposed to a fixed salary position with one company. Many musicians and artists use this mode of working alongside other workers, such as mechanics, contractors, taxi drivers, and more. 

How To Enter The Gig Economy!

Entering the gig economy has never been easier - either as a company or an individual looking for work. Using FieldEngineer.com as a platform, you can post your services out to any potential customers. Choosing a safe and reliable platform to offer your services on is essential, as it helps you avoid dodgy deals or unsafe working environments. 

If you are an expert in your field and are looking for more freedom in your life, try entering the gig economy using a reliable platform like Field Engineer

The Pros and Cons of The Gig Economy for Companies

Pros and Cons of The Gig Economy for Companies

There are both positive and negative points for using the gig economy as a company owner.

Pros:

  • No fixed salary. Having employees on a fixed salary means that you are required to pay holidays, sick pay, and notice period salaries. This is inevitably expensive for the business. Using zero-hour contracts avoids this. 
  • Lots of flexible employees. Having a vast number of flexible employees means you are less likely to rely on a few people. This means that no matter what the job is, or where it is located, you are likely to have it covered by one of your many workers. 

Cons. 

  • Workers are not as invested. Because they are ‘casual’ workers, employees are not loyal to your company and can leave at any time. In addition, gig work can reduce the workers’ incentive to do a great job, because if anything comes up, they can easily switch to another company.
  • Ethical issues. Ethically, the gig economy has come into question many times. If you are a company that thrives on an ethical reputation, be careful with the gig economy. Due to the fact that employment is casual and no benefits are given to the employees, you can run into ethical dilemmas when it comes to the treatment of workers. 

The Pros and Cons of the Gig Economy For Workers

Pros:

  • Flexible work. For those with complex and fluctuating needs, such as students, those with young families, and those with health problems, this can be a great way to work. Without the pressure of a strict routine, you can decide when you work, and how much. This creates freedom to take care of dependants in your life, and also to take care of your own health and wellbeing. 
  • Low commitment. If you find yourself disagreeing with the work you are doing, or you have a bad relationship with your chosen company, it is very easy to leave and take up employment elsewhere. 
  • Remote working. If you’re not interested in office life, the gig economy might be for you. Working as a delivery driver, a contractor, or similar, you can have the freedom to travel around during your day and never get bored of sitting at a desk. 

Cons:

  • High stress. With no fixed income, the gig economy can be stressful. If it’s difficult to find work, you might constantly be searching for work where there is none. This can lead to a decrease in your monthly income, and impact you and your family. 
  • No safety net. Without things like healthcare benefits and fixed contracts, it can be difficult to feel safe in the gig economy. If something goes wrong or a company cuts down their numbers, you can be left jobless at the drop of a hat. 
  • Taxes. Seeing as employers do not pay your income tax on your behalf, you pay your own. Be careful not to run into issues with working out your tax. 

Conclusion

The gig economy has excellent sides to it, but also has a pretty volatile side too. Some people thrive well from this system, while others find it a challenge. The gig economy is ever-growing, and if you feel your life needs to change, perhaps this is the calling you’ve been waiting for!

Hire On-Demand Freelance
What is The Gig Economy? Pros and Cons
from Largest Talent Network.
Hire a Freelance Engineer
Back to skills directory
Ready to get started?
Download our app to sign up and get started