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3 minute read
...the gig economy was once thought to be a fad but it’s here to stay.
It’s impossible to watch the news or read social media these days without learning of yet another massive layoff. Just this year, there have already been over 85,000 employees laid off from over 170 companies (according to layoffstracker.com), and these are big name companies – Google, Microsoft, Amazon, and SalesForce, just to name a few. Not only are people losing their jobs, but the way some companies have handled them is nothing short of atrocious. From learning they have lost their jobs by being locked out of their accounts (sometimes while in work meetings), to informing affected employees in a two-minute long Zoom call or via social media, there are horror stories galore.
When COVID-19 hit in 2020, we started to see a shift in the employment landscape. The world literally shut down and companies were forced to figure out a way to keep their businesses running and employees working. So, everyone who was able to, started working from home. And guess what - it worked! Even though companies had been saying for years that it could not be done, it worked.
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As things slowly started to return to normal, the remote work model stayed. People figured out that they could save two hours a day in commute time and thousands of dollars in gas or transit money by not driving into the office. They learned that they could be more productive by working when and how best worked for them and without someone coming into their office constantly interrupting or to check to make sure their butt was in their seat, as the expression goes. Having the flexibility to work while still making sure their kids got off to school or being home to wait for the plumber not only became the norm, it came to be expected.
Once people figured out that they could work on their own terms and still get the job done, there was no going back. Well, for employees anyway. Employers didn’t quite feel the same way, with many organizations requiring their employees to come back into the office either full- or part-time. Of course, many did, but others started thinking there had to be a better way.
All of these things have contributed to a changing employment landscape. Where employers used to have the upper hand in the employment relationships, the tides have turned. Now, many companies struggle to find employees at all, let alone qualified ones who want to work under their conditions. So where have all the employees gone? Wherever the hell they want.
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What’s referred to as the gig economy was once thought to be a fad but guess what folks, it’s here to stay. Rather than work for employers who dictate where, when, and how they must get their work done, many people have simply elected to do it on their own. With numerous options available such as owning their own freelance or consulting business or doing gig work like driving for a rideshare or delivery service, many people have run from traditional corporate America and are not looking back.
People have discovered that by working as a freelancer, they have the flexibility to work when and how they want (hello all you night owls getting it done after 7pm every evening), and for whom they want. People have also figured out that they can work from wherever they want, whether that means living somewhere much more affordable or having the ability to travel.
Also gone are many of the benefits of working for an employerhealthcare, 401k accounts, paid time off, a steady paycheck, and predictable work. But with the freelance economy growing the way it has the last few years, more solutions to these missing benefits are arising as well, from independent health and retirement savings plans to free resources that help freelancers budget their money, set their rates, and plan for the unexpected.
All of this isn’t necessarily bad news for employers, though. By hiring freelance or contract workers, companies can reduce the financial burden of paying full-time salaries, benefits, insurance, and taxes. It
Paula Unger Owner/Chief Consultant
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Employer’s Edge HR Consulting employersedgehr.com/
is easy to bring someone on for a particular project and only have to pay them for that project. This also allows the company to hone in on the right expert for their need, no matter where that person lives or works from. The overhead of having to provide office space can be greatly reduced, and all of this adds up to a better financial situation, hopefully meaning they won’t find themselves in the news feed because they’re doing layoffs.
A word of caution though - there are in fact laws about how companies classify workers, either as contractors or employees. Once companies start to dictate where, when, and how work gets done, they cross that line and can find themselves in serious hot legal water.
So, work with contractors, allow them the autonomy to get the job done that you are paying them for on their own terms, and stop wasting countless hours recruiting for positions that people just don’t want to do full-time anymore. The times, they are a-changing…
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