gig economy – transforming the way we work

F ECTIVEblogsgig economy – transforming the way we work

gig economy
transforming the way we work

If you haven’t yet heard the term «gig economy», it’s about time. The gig economy is a new way to work that includes short-term, project-based positions that organizations contract to independent workers. Instead of receiving a salary for longer term employment, gig workers get paid for an individual «gig» they do. Gig workers and the companies that hire them are becoming a larger and larger portion of today’s workforce.

An Uber driver in Zurich is a participant in the gig economy. A freelance writer in Geneva is a participant in the gig economy. A self-employed business consultant in Bern is also a participant in the gig economy.
And so too are the Uber rider, as well as the brand that hires the freelance writer and the business that hires the consultant — each is a member of the gig economy.

«when nothing is sure, everything is possible.»
Margaret Drabble

This new way of working and doing business is growing because of the many benefits available on both ends of the transaction. Businesses and consumers enjoy on-demand labor that is both short-term and flexible in nature. The cost of hiring a driver, a freelancer or a consultant is far less than the cost of keeping a full-time chauffer, writer or strategist.

And the workers enjoy benefits, too. Each is able to live where he or she wants to live, work when he or she wants to work, and generally enjoy a more self-directed life that is full of possibilities rather than full of responsibilities.

5 ways to gig: which one fits you best?

Because the gig economy is so new, it’s difficult to track how large it is. While more than 16 percent of workers in Switzerland are “self-employed,” not all self-employed workers are gig economy members. For example, owning a restaurant or drycleaners would be self-employment, though it would not be considered gig economy work. Also, many traditional workers who have full-time jobs also have side work that is part of the gig economy.

A recent Deloitte study indicates that about 1 in 4 workers in Switzerland are doing freelance work. These freelance jobs fall into roughly five categories:

contractors – the heavy-gig
Workers who take on various projects from different clients on a full-time basis, with many of these projects overlapping.

moonlighters – the side-gig
Full-time, traditional workers who keep some sort of side gig as a second source of income.

diversifiers – the multiple-gigs
Workers who make a living doing a lot of different things, perhaps including driving for Uber, writing on a freelance basis and tutoring students on the side.

owners – the passion-gig
Workers who employ a small amount of other workers and who take on freelance work while also serving as an entrepreneur.

temps – the easy-gig
Workers who take on temporary work that does not overlap with side projects, sometimes including short breaks or mini vacations between jobs.

The gig economy isn’t heating up in Switzerland alone. About 16 percent of all workers in the United States were members of the gig economy as of mid-2016. They served mostly in the professional services industries, healthcare, education and construction. While many gig economy members in the United States are millennials who entered the workforce with massive student debt, an economy in recession and dim hopes for the future, many are also older workers who simply like the flexibility.

The same holds true in Switzerland, where the workforce as a whole shows a high propensity for part-time work and labor participation among those ages 54 to 74 is higher than in most countries. The gig economy is open to workers of any generation in a wide range of industries.

are you ready? – don’t let the future pass you by

As the gig economy becomes more prominent around the world, platforms and marketplaces are cropping up to help connect employers to skilled workers. Companies that want to take advantage of the on-demand labor and productivity the gig economy offers can now find qualified workers. And workers who want the flexibility and independence of the gig economy can now find attractive short-term positions.

Are you ready to explore your options in the gig economy? F ECTIVE offers a platform that connects employers with workers — be it own employees, consulting companies or contractors. Your company can enjoy the cost-efficiency and flexibility of hiring a gig worker, or you can personally enjoy the freedom of short-term work as a gig worker yourself.

Get started with F ECTIVE, and discover the impact the gig economy can make on your life and work.

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