Category Archives: Gig Economy

During the last few years, the way companies recruit new employees and the way professionals offer their jobs have completely changed.

Some of the factors that made it possible are new technology improvement, digital economy development and different changes in a post-pandemic world.

Therefore, an economic concept based on people who offer their services in freelance and temporary ways through mobile applications has become popular. This new relationship within the labor market is called the “Gig economy” and it is applied by many new enterprises, as it accelerates recruitment times, which makes the search for skilled personnel easier for every task.

Small businesses and startups are the main driving force of the creation of digital platforms where workers offer their temporary services which are sometimes related to the tech world. There is currently a great number of young professionals who belong to areas such as web design and development, project management or copywriting, among others that are highly requested. The workers take the advantage of being part of various projects at the same time.

As the economy is becoming more and more digital, the Gig economy is making its way worldwide as one of the favorite options for millennials who prefer working in a remote, flexible, self-employed and short-term way and by objectives.

Although traditional recruitment processes have some known advantages, Gig workers possess certain aspects which seem to be increasingly attractive for 21st-century talents:

1. Innovation: they get in touch with innovative companies worldwide, which enables them to fully develop their creative potential.
2. Remote work: they are able to do their job from anywhere, they only need an electronic device and internet connection. In this way, there is a greater labor supply for them.
3. Labor flexibility: they give priority to flexible schedules that let them organize themselves and combine work and leisure. They prefer short-term projects where they are paid by objectives and not by hours worked. They even do different jobs with many startups simultaneously.
4. Extra incomes: they often use this labor model in order to generate an extra income by working as freelancers in their spare time, as every worker manages their own time.
5. Online payments: due to new technologies, professionals can invoice from anywhere in the world. There are several safe platforms by means of which organizations make payments in a digital way.

These are some of the characteristics of this economic model that is making their way by leaps and bounds thanks to the offered advantages both for enterprises and professionals.

However, within an increasingly competitive working context, it is considerable to know what the companies are looking for and which skills they prioritize when recruiting talents.

These are some recommendations in order to be prepared if some opportunities arise:

1. Inside the Gig world, working experience or academic qualifications are not as relevant as the specific skills of every worker. The idea is to analyze the main problems, the current world challenges and the talent’s contributions to solving them. The most required skills are language, meeting deadlines and writing. It is also useful to recognize the strengths so as to develop them.
2.   Learning to work independently without bosses telling what to do or when to leave is not only one of the benefits but also the challenges of this model. Being organized and able to manage time properly is a must.
3.   Becoming part and familiar with the digital world and the new technologies is vital to perform and improve within a Gig context. Tech-skilled professionals are more and more required.
4.   The constant training is significant. We are talking about areas that are constantly changing and updating, so a university degree is not enough. Continuous learning candidates are taken into account.
5.   This economic model is equal to or more competitive than the traditional one, so it is crucial to demonstrate what someone is capable of. It is important to have a portfolio to show in any job opportunity. In this labor dynamics, they have to worry about performing the job properly and acquiring new clients frequently.
6. Considering what allows the talent to stand out from the crowd is also essential. The idea is to be clear about what their distinctive feature is and create a personal style. Therefore, they will be able to go into the labor market and offer their services successfully.

The gig economy is a trendy model that is chosen more and more by professionals who decide to manage their own time. It has become really popular during the last few years and predictions indicate that it will continue like this.

Although it is a competitive model that needs to be one step forward to achieve the best opportunities, it has numerous benefits and no one would regret adopting it as a labor dynamic.

Some say it is the future work, although we think that the future has already arrived. Now it is necessary to analyze how this trend will continue developing in the medium and long term.

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Digital transformation of workplaces has generated new trends that revolutionize the labor market.

Nowadays, on-demand and independent jobs have caused an increase in worldwide employment options, which has become a feasible and sustainable option for many people.

Digital natives look for new ways of working and prioritize the chance of incorporating their jobs into their personal life. Spending 9 hours in a crowded office is no longer an option for those who have experienced management by objectives and without the pressure of time. This new model is the demonstration of the “life-work balance” on which new generations are based and they put it into practice in every opportunity that the labor market has for them.

So, within this context of freelancers seeking professional growth and labor diversity rather than one job for their whole life, arose a concept in America that has become popular during the last years: the Gig economy. According to the Cambridge Dictionary, the Gig Economy is a way of working that is based on people having temporary jobs or doing separate pieces of work, each paid separately, rather than working for an employer. In general, these temporary services set by objectives are offered on digital platforms that establish a connection between workers and users who are asking for a specific service. As stated by the Gig Economy Index, almost 40% of the American labor force generates at least 40% of their incomes within this model. Besides, as claimed by the research From Workforce to Workfit, carried out by Kelly Services, a company specializing in external consulting, the demand for this kind of workers in that country is 47%. Independent freelancers’ microbusinesses in America represent 17% of the gross domestic product, which generates US$2.4 trillion.

The worldwide figures indicate the growth of this trend: the demand in Asia is 84%, in Europe it is equivalent to 80% and finally, in South America it reaches 54%. Taking into account these figures, many experts claim that the gig economy is the future of work, due to its outreach, facilities and working benefits both for employees and employers.

Among the most remarkable gig economy benefits and advantages for a freelancer, we can mention that:

Independent workers improve their quality of life: reaching a balance between personal life and work is one of the most valuable advantages. Remote jobs enable them to sleep better and even eat better, as they are not under the pressure of time.

They can have a flexible schedule: as they are hired for a certain project or objective, this type of worker is able to manage their time in the most convenient way.

They feel motivated: a freelancer is highly motivated since they have the chance of working in a field they love. Management by objectives makes tasks become more specific, so they feel more at ease.

They can save money: independent workers save on daily expenses, such as commuting or having lunch on the go.

It is also important to note that remote jobs give the possibility of generating incomes to people who are usually excluded from the traditional way of working, for example, those who are in charge of caring for others or are unable to commute due to a lack of mobility.

This methodology is also beneficial for enterprises, as they acquire the necessary resources and talents at the appropriate time and place. Freelancers really value independent work and they are constantly getting qualified, which makes it possible for the enterprise to create a highly competitive work team. However, this represents new challenges for the companies that must incorporate their traditional teams into the remote ones. According to Kelly Services’ research, the enterprises that succeeded in this in an innovative way it is because they passed on the business culture early, implemented a comprehensive onboarding process and used adequate digital tools.

Some data that show this trend worldwide are:

–       The number of digital platforms that facilitate online work or that hire workers directly to offer their services increased fivefold around the world in a decade. 

–       Only 13% of people who worked remotely by the end of 2021 have fully come back to the face-to-face model, as stated by Infojobs’ research.

–       A McKinsey report shows that more than 150 million people from Western Europe and North America have decided to become independent workers during the last decade.

–       Lately, it has been known that more than 4 million American people have quit their permanent jobs willingly in order to set up their own businesses or work on their own.

As technology improves and the labor force evolves, the gig economy emerges as an original way of working which is based on independent development and without any geographical limits. Some of its advantages are easier access to opportunities, more efficient use of resources and comfort for workers and clients.

In this model marked by a versatile and disruptive economy, specialization and knowledge are not limited by recruitment methods or borders. More than ever, there is huge competition in the business world and digitalization has become a need rather than an option in order to be at the forefront of the current market.

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The Covid19 pandemic accelerated the setting of a new model that is focused on the digitalization of work. This places us in a full training and developing reality which is being taken on increasingly with its ups and downs.

Nowadays there are around 1.100 million freelancers working around the world. In many countries, the supply and demand for remote workers have risen significantly during the last few years. The search for job advertisements making reference to this modality is placed in a more and more important position. For example, 41% of the American labor force is freelancers.

The independent work methodology is accepted worldwide and the demand will increase because the concept of work itself has also changed. Productivity is not related to the number of hours spent in an office by an employee. Moreover, strict compliance with schedules is a thing of the past. New generations will not want to come back to their workplace as they knew it and remote job positions will become more powerful in contrast to the traditional way of working.

The future of work, in which the digital world is more and more predominant, comes together with an increasing demand for freelancers. According to this model, not only the enterprises but also the employees are facing new challenges. Although this situation is profitable for many companies as general expenses are reduced, there are some questions that arise:

How to achieve effective communication

Internal communication is essential for the success of an organization since it makes possible the synergy of the work team. Having a virtual place for dialogue will keep the connection among employees and between them and their employers, it also enables them to overcome any obstacle on time. Arranging weekly meetings with clear goals represents a must for a remote team.

How to recruit talents

It is hard for those who have worked following the traditional model to think of a recruitment process for freelancers for the organization. However, there are many websites that function as platforms of talents, in which the geographic location is not taken into account.

How to build the company culture

It is not easy to imagine a business culture when facing this work fragmentation where one person belongs to several enterprises at the same time. In spite of this, the desire of a person to have a remote job position has to do more with being able to manage their own schedule rather than with belonging to an organization or not. Therefore, the freelancer can be part of a company but without being employed in a dependent way. This is a challenge for the managers, who must use different strategies to strengthen the much-needed culture of work. The first step is great leadership, as employees will respond by recognizing them and themselves as an active part of the company.

How to follow up the fulfilling of working goals

his new methodology is showing a positive impact on productivity since employees no longer work under pressure but they pursue an objective. Keeping updates and improvements in tasks is a good way of providing a follow-up without bothering someone. Establishing short-term goals makes it possible for the talents to organize their timetables according to their preferences without hinder productivity nor their approval of the enterprise.

It is clear that organizations must be adapted, but people who took on this new culture are also facing new challenges, such as:

Time management

One of the advantages of this modality is the lack of a manager giving orders. However, this can be negative if time is not well managed. One of the most valuable aspects of being a freelancer is having available time to enjoy the freedom that this involves. Therefore, it is important to fix a work schedule and priorities, provide a follow up of the working hours and know how to delegate.

How to get new jobs

According to a survey carried out by the financial services company Payoneer, 36% of the clients are in North America, while the European customers represent 27%. Using social media is a useful tool when trying to contact them, as it is free. Another way of acquiring clients is by word of mouth, that is taking advantage of the company’s acquaintances who may need their services. Networking and collaborating with other freelancers are other ways of getting new customers later.

Setting fees

Although remote job positions eliminate the geographical borders, freelancers must take into account that remuneration levels are set according to the cost of living in the customer’s country and not in their own one. It is a good idea to get in touch with other freelancers and revise tariff charts in order to estimate costs. Making an estimate of the hours that will take to fulfill the goals, evaluating the money that is needed and considering a profit margin are different ways of calculating figures. It is not a bad strategy to ask the client which is the budget that is considering investing in that project.

There are many challenges that both employers and employees must undergo, but being able to give answers to them and understand the future of work is essential if we want to be part of the new working model of the digital era.

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