Non-traditional workers are also known as gig workers. They earn income outside the traditional employer-employee relationship. A gig is a term that describes a job that lasts for a specific period.
Many terms can describe a gig worker: independent contractor or online platform worker, a contract worker with a firm, a worker for a temporary company, a worker on-call, a worker on-demand, or contract worker. They enter into formal agreements with on-demand businesses to provide services for the company or its clients. The official definition of a gig worker is still debated, and different aspects can lead to other purposes.
A gig worker is defined by the work arrangement, the relationship between work and the company that pays them. Long-term workers usually earn a salary, whereas gig workers work on projects or temporarily and receive variable compensation.
Other definitions include tax status and legal class, which are the differences between employees and independent contractors. They may also have benefits and are protected by the employer’s anti-discrimination and minimum wage laws. Independent contractors are provided benefits and abide by the law, while gig workers do not have benefits and are not covered under any laws.
The nature of gig work can be used to define it. It is the work that a worker does every day and the characteristics of the work, such as flexibility, scheduling, oversight, etc.
WHAT IS THE GIG ECONOMY?
The gig economy is a system that allows temporary jobs and organizations to hire gig workers to fulfil short-term obligations. It is a different work arrangement from the traditional primary job. This type of economy departs from the conventional economy, where full-time workers rarely change jobs. Employers find gig workers more cost-effective and efficient than full-time workers.
The gig economy is a network of workers who make a living from companies like Uber, Airbnb, Amazon Flex, or others. This type of economy is popular in cities but is also common nationwide.
GIG WORKER Vs. REGULAR EMPLOYEE
An employee and a gig worker are two different things. The employee is paid by the company and is employed by the company. On the other hand, a gig worker is someone hired by a company to do a specific task or complete a project. The gig worker can either complete the project and then quit working or decide to stay with the company until the company approves.
Employees receive workers’ compensation, retirement plans, and health care. Employers also send a W2 to the employee, which automatically deducts their taxes. Gig workers are not entitled to benefits, retirement, or healthcare, and their taxes are not automatically withheld.
Because gig work is more volatile and less secure than long-term work, it is generally considered less stable and more uncertain.
GIG WORK HISTORY
The rise in gig work is due to the pandemic, economic advancements, and industry digitization. However, this concept is not new. The gigs, including food and parcel delivery, are not new. However, it has been possible to make an income moving from one job to the next since the early 1900s.
GIG WORK: THE RISE OF GIG
On-demand platforms have seen an increase in use due to the rise of smartphones and other information and communication technology. These platforms have created new jobs and other forms of employment that are not traditional in terms of access, convenience, price competition, and accessibility.
Most gig work is available through cloud-based platforms; meaning gig workers don’t have to be in one place to accept a job. Employers also benefit from this because they can select the best candidates for specific projects, regardless of their geographical location.
The following are other factors that contribute to gig work’s rise:
1) Businesses are under financial pressure, so they need to be able to hire flexible workers to meet their staffing requirements. The gig economy is an evolution of the trend that millennials are more likely than others to switch jobs throughout their career.
2) Entrepreneurship is on the rise. The idea of being your boss is highly desired by Americans who want less direct management and more significant job flexibility. However, this may mean less job security and fewer benefits.
3) The effects of COVID-19 on the overall work environment.
FUTURE OF GIG
There are many reasons for optimism that the gig economy and gig workers will continue growing. A growing trend is toward gig work becoming a digital platform that connects businesses and service providers, which helps to close the skill gap for short-term projects.
Taskmo is a tech-driven platform that makes it simple and secure for both parties. It allows them to choose the right candidate and then pay them for their work. While some people use the gig economy to supplement their income, others depend on it as their primary source. Many people are still unaware of the revolution in the world of work that is transforming how businesses operate around the globe. Grow your business 10X using Taskmo Services.