Gig economy is going strong, with freelancing on the rise

Gig economy refers to general workforce environment in which temporary jobs are common and companies contract with freelancers for freelance work or short-term engagements.
As per the recent study, there are more than 55 million freelancers in America today. By 2020, 50% of the U.S. workforce will be freelancers. This on-demand work, instant gig economy is moving more and more into independent professionals.
There are numerous reasons why freelance work is on the rise, from shifting financial conditions to corporate downsizing and employee dissatisfaction. However, it is clear that rising internet penetration and use of technology have given people an opportunity to escape the pound of a standard employment. Now, let’s weigh up the reasons behind it.

High wage inflation and rising costs

Today’s hiring climate is going through a major shift, one reason companies are tapping independent contracting for even important work is high wage inflation and rising costs and complexity of training people and providing infrastructure. Hence raising costs being a huge chunk of fixed costs for businesses, hiring freelancer’s lets businesses convert them into variable costs.

A flexible and dynamic workforce

Freelancers are not the only beneficiaries of the trend. Big companies are also adding tremendous value by giving out specialised jobs not done throughout the year. And for start-ups that cannot afford to hire full-time staff, the trend is in a much bigger way, lowering the barriers that once made independent contracting much more challenging.
Also, on average it takes 2.7 days to hire a freelancer from a talent marketplace, rather than 34 days for traditional recruitment methods. From the recent study, 88 per cent of businesses reported a noticeable, negative impact on performance because of this inefficiency. Such a lengthy process is restrictive for today’s fast-paced business environment where agility and responsiveness are essential for a competitive advantage. The ability to quickly introduce new talent means that companies can undertake additional projects without placing further strain on employees who already may be stretched thin.

Wider access to talent

The global component of freelancing means that companies can access the best untapped talent around the world. The concept of talent being a company’s most valuable asset for growth and innovation is not new, however the dynamics and composition of talent have dramatically altered. Today’s business landscape requires specialist skills and expertise and exceptional talent to enable corporate success. The globalisation of freelance talent has opened the door to a broader pool of talented, hardworking professionals at competitive rates. This enlarged talent pool provides organizations with hyper-specialised, exceptional talent that was previously inaccessible.

Increase in productivity

Choosing to incorporate freelancers into the workforce should yield greater productivity, prompted by two factors: hyper-specialisation and accountability. Many employees report feeling overworked and stretched across tasks, often working on those outside of their skill set and knowledge. Rather than hiring one generalist to complete all tasks and demands of a business function, companies can designate tasks to various freelancers who specialise in that area.
Each would work only a few hours a week, concentrating only on one task and ensuring that KPIs are met.

Valuable for smaller companies

The gig economy is of particular benefit to smaller companies or start up’s who experience fluctuating periods of activity. Concerned that they will not be able to sustain the position, many small companies hold off hiring full-time employees. The rise of digital talent platforms has alleviated this concern through improved access to individuals willing to undertake temporary contract work. The prevalence of these workers also provides major relief for start-ups who cannot afford to hire permanent staff. In addition, financial constraints prohibit smaller companies from hiring the best talent, so they often settle for less experienced and knowledgeable employees. The rise of freelancers and associated digital platforms should provide some relief to this trend through the opportunity to pick and choose the best talent from a growing pool of temporary workers. Furthermore, moving labour from a fixed to a variable cost is economical and the work completed by the freelancer should pay for it in the short term. Small business is widely considered to be the driver of growth in the economy, spurring innovation and creating millions of job opportunities.

NEW DIGITAL PLATFORMS FOR PAIRING TALENT WITH BUSINESSES

There are now more ways to work as a freelancer than ever before, from devices, apps, and other personal technology that lets us communicate with one another from virtually everywhere. But there’s another sort of innovation that plays an arguably greater role—platforms designed to match companies with talent.

One of the greatest hurdles for most contractors is business development and filling their project pipelines. New online marketplaces are propelling in a wide range of categories, helping talented freelancers to find work in their chosen fields. One of the largest is, FieldEngineer.com which is a global, on-demand pool of talented Telecom Engineers, standing by to successfully complete your project. This is a marketplace specifically intended to help Field Engineers find job and get paid quickly. These kind of platforms are creating flexible opportunities for individuals who want to be freelancers.

With the quickly growing gig economy spurred by the rise of digital talent marketplaces, the workforce is set to experience major transformations. This labour trend will offer remarkable work opportunities for individuals disenchanted with the rigidity of full-time work as well as those unable to secure employment amidst a challenging labour market. Increased workforce participation will address dysfunctions in the labour market, providing previously inaccessible skills and knowledge to companies around the world.