Articles

6 Common Myths About The Gig Economy Debunked

  • Posted By
    10Pointer
  • Published
    14 October at 06:00 PM

It is human nature that whenever any new phenomenon enters our life, we either doubt it; we think about it in a superlative degree, or we dismiss it totally! That is how we are, collectively! One such new concept spreading like fire in the global economy is “Gig working!'' In spite of all the advantages it is delivering to big companies, it is still looked at with doubts. There are many myths about this concept. If you look at the core, this idea of working is not new to the economy, but it had never been used widely and hugely before. Here are a few myths around the gig economy:

1. Gig work is a low-paid drudgery

This is a common understanding among naysayers that gig work is a low paying job, one gets stuck in repetitive work (no scope for innovation), and the satiety level is not up to the mark. However, the truth differs from this belief. One has to keep in mind the industry in which the freelancer is working, and the level of skills/ experience this freelancer holds. There are many online and offline opportunities for gig workers where they have to work on low payment due to the lack of skill or desired experience level. However, those who have chosen the career of their choice and have considerable experience and skill are earning six number figures/year. As a matter of fact, due to all the benefits of hiring a freelance professional, smart companies have already stopped recruiting for a few positions in-house. These companies outsource their work from freelancers.

  • According to Gallup, about 36% of US workers are involved in this type of earning.
  • PYMNTS stated that 40% of US workers are earning a large part of their income from gig works.

2. The gig economy is a temporary phenomenon

  • Wonolo has claimed that the yearly growth in the number of freelancers is increasing. 
  • The increase in the total number of freelancers in the US in 2015 was a mere 1.3% as compared to the increased rate of 4.2% in 2017.
  • Upwork has revealed that in 2018, billion hours were spent/week freelancing by independent workers.
  • Even Forbs has stated that the gig economy is expanding three times faster compared to the US workforce.

Experts are expecting more growth in the gig economy down the line. However, some claim it as a novelty. Comparing gig work with full-time work does not seem logical as both are two different things. Gig is not competing with a full-time job; the gig economy is a different trend that is growing fast.

3. Gig work is for millennials only

Gig economy is undoubtedly attractive for young minds who do not want to stay limited to one type of work or company or place, for that matter. However, other generations are involved in it too. As per the survey conducted by PwC, 65% of the workers who are above the age of 50 are interested in working independently. A large number of workers (above the age of 40) are using gig work platforms. 73% of the generation- Z workforce is opting for freelance/gig work enthusiastically.

4. Gig work is hectic

Well, this is not entirely false; however, it varies from person to person. Most of the people who are gigger professionally are doing it because they love the freedom of work, flexibility of hours, thrill, and money involved in this. Plus, the traditional, full-time working structured to support industrialization, and that doesn’t seem totally relevant now.

5. Gig work is better for businesses only

One more myth around the gig economy is that the real benefit of this type of economy is available to businesses only, especially those which are well established. The reality is the other way around! The core benefit of the gig economy is that these professionals are available for work on-demand. Organizations, big or small, do not want to worry about hiring them for a long time. Freelancers mostly work on a project basis. In case you are a small organization with a tight budget, you are open to reach any freelancer across the world through online gig work platforms; you no more have to stay restricted to the local talent. You can associate with different freelancers for different work.

6. Freelancers struggle monetarily

This is another myth that could scare the hell out of workers who are living a stable life. Though this type of working pattern is not made for everyone, those who do it with clarity tend to earn a lot. Many freelancers move out of the city, buy or rent a house at a peaceful location and save themselves from unnecessary expenses and commuting time. Plus, there is no ceiling when it comes to fees. A freelancer can raise prices, depending on the work and deadline. The truth is, this economy is evolving and expanding at high speed.

Apart from the above-mentioned myths, there are a few doubts prevailing in the market about the gig economy. Here are a few doubts and answers to them:

How to know if the gigger is qualified?

This doubt will most probably come to your mind if you are comparing this new-age economy (gig economy) to the service industry or manual labor jobs. The gig economy includes individual talent across a wide range of industries, experience levels, and skills.

So why don’t people prefer full-time jobs?

  • Freelancers get to spend time on meaningful and exciting tasks.
  • They are in control of their time, working hours, and working style.
  • Lack of flexibility in full-time jobs.

Worry that In-house workers might feel threatened?

This is a reasonable fear, as there are chances that your permanent employees might look at freelancers as their replacement. However, as a smart organization, you can resolve this issue and remove the fear from your in-house staff’s mind by establishing a communication between freelancers and employees and build a sense of team among them.

How do we know they’ll be effective?

Freelancers do not have a permanent job like your in-house employees; hence, they try to make the best out of every opportunity they get.

We hope the above-mentioned doubts and their solutions have given you enough information about what the gig economy is and how it might work for you! The truth is that we must go in time. As time changes, the market needs change; and one must roll with it to survive.



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