The Gig Economy – a fashionable buzz-word or a new labor market paradigm? The latter, without a doubt. Wondering what this new paradigm means and how it will evolve? We got the answers!
The Gig Economy emerged as a reaction against a slow labor market and high unemployment numbers. The idea that job-takers shouldn’t be locked into one position, in one company, in one industry is not new, but has reignited with the emergence of the Gig Economy phenomenon.
Learn all you need to know about the Gig Economy here:
Tackling Unemployment and Rationalizing the Economy
Gigs are important in shaking up frictional, structural and cyclical unemployment, and create more efficient organizations that can hire and relocate the workforce based on current needs, and direct attention and production toward pain points. This:
- Lowers costs,
- Increases flexibility,
- And ultimately provides the customer with better products and offers.
The Gig Economy has taken this to the next level. The phenomenon has spread from niched American P2P platforms all the way to the small Swedish municipality Falun, were the local government has turned public sector jobs into internal gigs in order to increase the number of full-time employees and direct resources where needed (SvD, 2017). Currently, 20 to 30 percent of the U.S. and European working population engage in some form independent work, and it is continuously growing (McKinsey, 2016)
But as for all new paradigms, there are winners and loser. Being in what still could be called its inception, the Gig Economy has also made work less secure, lesser paid and lonelier for some (The New Yorker, 2017). The new paradigm needs to be developed, improved and fine-tuned.
How To Win in the Gig Economy
In the light of this, we have put together five keys to success for companies within the sector:
- Make B2B business out of the Gig Economy. A gigger is often portrayed as a contractor delivering food to or putting up shelves for private individuals. But businesses can also leverage the Gig Economy model, and thus broaden the perception of who the gigger is and what she does. Businesses need the gig flexibility just as much as individuals, and more involved companies means more gigs
- Redirect the focus from the individual to the team. Individualism has become central within the Gig Economy, but individualism is over-rated. By working in on demand teams, the gigger always works together with others and can choose which teams she wants to be part of. The business on the other side of the equation gets a team with the right competence, which activates when the need occurs.
- Build a gigger community. The Gig Economy has been pictured as lonely and cold. It does not have to be this way. By working hard with after-works, career lectures, parties, and hang-out spaces, you can create a sense of common belonging. The togetherness within a gigger community should be just as strong as on a workplace.
- Offer fair wages, perks, and insurances. Recruitment, onboarding, and workforce administration is costly and companies are desperately looking for ways to turn fixed costs into variable ones. In taking care of all this, the client can focus on their core business – a provided value that they happily pay for. This enables fair wages and qualitative insurances.
- Enable full-time gigging without compromising the company’s flexibility. If the gigger can choose between many different gigs under the same umbrella, she can tailor her own work-week. And if the company wants to scale down, there are always other teams for the gigger to jump into.
Gigging has become the preferred way of working for many millennials. This lifestyle allows for flexibility, traveling, and independence, and if the above points are followed – also good pay, security, and a sense of belonging.