The Gig Economy: The New Reality of Business
Let's start with the question first: What is the Gig Economy?
Imagine working as many hours as you want without the concept of overtime. This may not sound like anything new. "Freelancing" is a well-known business model for many years. However, we can say that the attraction of freelancing is increasing day by day with the platforms that have emerged thanks to the digital transformation experienced with the relentless progress of technology. However, the attitude of people towards free material gain has created a brand new economy. The new economy created by freelancers with the proliferation of freelance platforms is called the "Gig Economy". “Gig” is a term from the music industry, it means short-term work. As Faruk Eczacıbaşı states in his book It's Just Beginning, we can call it "one-shot business economy".
In recent years, the Gig Economy has become a new reality for employees and companies. Statistics compiled by Jobble, an on-demand workforce platform, vividly demonstrate the growth in the Gig Economy. According to sources including the PEW Research Center, about a quarter of Americans appear to be making money from the Gig Economy. Meanwhile, 53 million Americans represent more than a third of the nation's workforce.
Updating Reality: Living the Gig Dream
As Jeremy Goldman stated in his article on Inc., when you meet someone working in the Gig Economy, he will tell you how much this situation has changed their lives at the first opportunity. And if you come across someone who doubles their annual income by spending less time, you can have a good grasp of the positive aspects of the job. Apart from earning more, the idea of having more control over work and life by spending personal time in the process may be more appealing to some.
Freelancers in the Gig Economy have to come up with individual solutions to get the benefits of a traditional corporate employee (health insurance, pension funds, vacation time, etc.). This is an attractive situation for companies. Hiring high-skilled employees full-time can be a costly process for some companies. Planning in a way that provides minimum cost and maximum benefit from the talents of gig workers creates a win-win situation for both parties. Of course, it is necessary to plan clearly which workers are to be used in which projects and how. Also consider how to involve Gig workers in future projects over time to ensure continuity, which is essential to success.
The Gig Economy is Changing the Structure of Industries
Some companies see the Gig Economy as a new opportunity for additional revenue and growth on a sectoral basis. For example, Paro, a successful startup in Chicago, decided to use the Gig Economy as a framework to reshape the accounting industry. “Accounting firms are behind the times,” says Michael Burdick, CEO and founder of Paro, “The staff does all the work, but the partners get all the profit.” According to Burdick, the success of such companies depends on personal interactions in an increasingly digital world. Companies using the capabilities of Paro's freelancer network ensure that their costs are reduced significantly. In addition, Burdick draws attention to the benefits of the Gig Economy other than financial gain, saying, "We can connect the right people to the right projects based on relevant industry and subject expertise rather than geography."
A New Opportunity A New Excitement
Accounting is just one example among the many industries transformed by the Gig Economy. We can now see the Gig Economy as a new global reality. In this reality, companies in all industries, from consumer-focused products and services to B2B and even manufacturing, have incredible opportunities to tap into the talent they need.
In addition, projects and platforms produced by digital entrepreneurs eliminate borders by eliminating the need for people to reside and work in different countries. There is no reason why the new economy of this new world should not serve to create a more motivated and happy workforce. On top of that, as these outsourced structures develop, company organizations will also have to change. Let's see, how will the adaptation process of companies in Turkey be?
Bonus:
List of Top Employers Contributing to Gig Economy(2018):
You can reach how the list was created and other global companies here.
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