It sounds cool to be a part of the gig economy. There are a number of definitions for this new way of working but all definitions revolved around short-term work stints in a business as a non-employee. For example, a graphic designer will be brought in to design a new logo, posters, and related material for a company changing their name. This person may be needed for 3-6 months but it would not make sense to keep them on as a full-time employee.
The company gets the benefit of a short-term worker. The worker gets the ability to move from company to company based on the project. Sounds fantastic! However, as in every new option, There are some tremendous challenges for the worker.
End of Long-Term Employment
Up until the 1980’s, an employee for a company could plan on staying there for their entire working life if they didn’t do anything really stupid. Because of a number of factors, businesses decided they could hire and lay off employees at will and whenever they needed to increase the bottom line. Short-term thinking (based frequently on stock market pressures) has now become a key part of decisions and that means shedding employees on a regular basis.
Many employees are giving up on being totally loyal to a company and looking for options. Businesses are also contracting out more work to outside companies rather than having it done by employees. Employees are looking at the green grass outside the company and thinking of being part of the gig economy.
Benefits of Being a Gig Economy Worker
- You get a chance to working on a number of different projects and a wide range of experience
- Good work will get you called back to a help on a company – after a few years, you could get offers for more work than you could handle
- Because you get no benefits, the cash amount paid will most likely be higher than working as an employee (if not, get better and negotiating!)
- You get to work with a wide variety of people and make great new contacts in your industry
Problems of Being a Gig Economy Worker
- If you like being part of a team, being a gig worker will leave you feeling as an outsider – in extreme cases, the employees will have activities that don’t include you including pizza parties, etc. If you are big on being part of a permanent team, stay working as an employee
- Expectations by Businesses – you will be expected to hit the ground running. A new employee can several weeks to several months getting up to speed. A gig worker will not be given that option. You may get extensive pressure from the company to achieve results and if you are emotionally fragile, that will be extremely stressful
- Selling – you will need to become a sales account manager for yourself. This can be extremely hard when you make phone calls to get new projects
- Gaps – it is very hard to line up projects and work exactly so you don’t have a gap in the work. Expect to have 1-3 months gap in pay each year. This can be very hard mentally.
- Loss of status – it may be hard for some to not be working for a specific company. There will be lots of people wondering if you cannot get a job and are just waiting until a job offer comes along
- Schedule – you will not get to have total schedule flexibility. When the client needs a job done by a certain date, it does not matter what is happening in your personal life, it needs to be done by that date…no later. That can bring tremendous famly stresses