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Written by: Ashley Watters
According to a report by Intuit 20/20 , 40% of the economy will be freelancers by the year 2020. With numbers like these, we can no longer avoid the reality that we are living in a gig world and that you are a part of it. What exactly is a gig economy? This term refers to the situation where businesses engage in short-term contracts with individuals who perform work for a specified term, provide a specialized skill, or complete a particular task.
Even if you hold a traditional position in an organization, you will feel the impact of the gig economy. If you have ever taken a ride with Uber or vacationed with Airbnb, you have interacted with a company who utilizes the power of freelancers. As more and more businesses adopt this business model, it’s important to understand how this may affect you.
Pros of a Gig Economy
Freelancing comes with several benefits. Certain professions are an ideal fit for the gig economy. There are definite benefits for
Freelancing is also a great opportunity for mothers. The flexibility gives mothers a chance to spend more time with children while still maintaining an income. How can mothers make it work? Check out these tips for freelancing mothers . In addition, pay is competitive, often allowing women to stay in the game.
Cons of a Gig Economy
As with any industry, freelancing comes with some disadvantages. For example, there is little social safety net for freelancers in a gig economy . Certain benefits, such as retirement, are not available. Unskilled laborers also have little bargaining power. While working from home allows individuals to provide in-home care for family members, it is difficult to earn a real living while caring for loved ones.
Why Do Workers Choose Freelancing?
Given these disadvantages, why would a skilled individual want to enter the world of freelancing? A whopping 48% of workers are unhappy in their current job. Freelancing not only provides a flexible work schedule, but it also allows professionals to follow their passion. In addition, the freedom offered by freelance work opens up options and the flexibility allows for more life balance. 67% of freelancers say that they will never do anything else.
Want more information? Check out our ultimate guide for freelancers .
What is the benefit of freelancing for business?
When faced with a complex business problem, businesses often need an entire team of people to formulate a workable solution. In the past, this has involved a large hiring spree. If that wasn’t an option, you could hire a freelancer on your own.
But, how would you know that you were getting a truly qualified professional? Partnering with a business who utilizes freelancers is a viable solution. Businesses that use a freelancing model do the vetting for you. You can hand pick the team you need while knowing you are receiving skilled help. Find out more information about how the gig economy impacts companies .
The fact of the matter is that freelancing is only growing stronger. Last year alone, 700,000 people became freelancers for a total workforce of nearly 54 million Americans.
Welcome to the gig world!