Posted by Abundant Returns Tax Service

Gig economy- an approach to work independently!

Gig economy- an approach to work independently!

Gig economy means that companies prefer towards hiring employees on a temporary basis and offer independent contracts instead of full time employees. Gig economy does not prefer employees working in just a single company all their lifetime and do not move towards any other job.

Gig economy is quite popular because a large number of people prefer to work part time and on temporary positions. Gig economy is quite cheap as well as efficient for instance Uber and Airbnb are good examples. 

They wish to build up their name and fame both in a single company and wish to succeed only through this. This can be a drawback for them as companies prefer to hire short term employees as compared to the full time ones because it is cheaper to hire short term employees. 

Apart from Uber and Airbnb, a large category of positions falls in to the gig economy. For instance, part time teachers who come to the schools or colleges twice a week for just a few hours. This way the colleges and universities find it very easy to do the cost cutting as they can hire more and more professors. 

The factors which contribute towards gig economy

The United states of America has been known to establish a gig economy of its own. Almost third of the entire working population of United states of America already falls in the category of the gig economy. 

In the world of today, working from home is becoming increasingly popular. In these kinds of jobs, temporary contracts are offered which allows the employee to just work from home for just a few hours. 

This is also an added advantage for the employers as they are not bound to hire only such an employee who has a good degree. They can just hire anyone, anytime without the documentation process and the paper work. It is much quicker to hire someone like that as long as the employers are getting their work being done.

Economic reasons also contribute towards the growth of gig economy. As people get graduated and experience, sometimes the pay scale they demand is out of question for a company. It is harder even more for a company if it is in its early stages.

This is when companies prefer to hire temporary contracts. Gig economy is also very beneficial for those employees who do not wish to work in the same environment all their lives. They need change of environment, they need adventure and they also need the expertise of many companies on their CV before they actually wish to settle down in a single company.


Gig economy in the United states of America

If you have a close look at the United states of America’s figures, you will see that there are almost 57 million free lancers working at the moment. They contribute almost 1.4 trillion dollars to the Us economy every single year. Isn’t that huge?

This does not stop as well. Infact, it continues to grow every year by an increase of 2.6 percentage every year. If you wish to be a successful free lancer or a gig economy worker, you need to have the necessary skills required. You must know the use of technology as many of the things revolve around it. 

The bottom line

Well, this was all there was about the gig economy. Gig economy on the whole is a great advantage even for the new comers and the fresh graduates. If it is for the full time job, companies are reluctant in to hiring fresh graduates as they do not have any experience. 

Due to the gig economy being so popular, companies do hire fresh graduates. This is an advantage both for the employee as he will be able to show his skills as well as get experience. And for the company, that they will get an employee in half the salary that they would have given instead to a full time and experienced employee. 

Although, there are many of the advantages and benefits of the gig economy which are known it is still a great drawback for the permanent employees. This is because not everyone wants to work on a temporary basis. Some employees prefer to get a job in one company and wish to work in a single company all their lives. 


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