Wednesday, February 12, 2020

Why the Gig Economy Matters

There are two major types of gig economy workers: independent contractors and contingent workers. Independents comprise those who consider themselves to be their own boss; whereas, contingents are contractually obligated to work for a company, similar to regular full-time employees, without the security and benefits that come along with full-time employment.

Both of these types of freelancers equal to about 36 percent of the US economy. Gallup reports alternative work arrangements are becoming more common forms of employment, where 49 percent of part-time workers and 24 percent of full-time workers have a second gig. Surprisingly, people with alternative working arrangements as their primary job total close to 29 percent of the US economy.

Understanding the difference between being an independent or contingent worker comes down to whether you feel you are your own boss. Although it seems like most of us would be happier to be independent than contingent, the contingent workers are, on average, happier than regular full-time workers. gig economy saving businesses money

Due to the flexibility of working on your schedule, contingent workers agreed they had a strong sense of freedom with their jobs; where 39 percent of contingent freelancers agreed to this statement, only 27 percent of standard workers agreed.

Choosing between independents, contingents or full-time workers comes down to understanding your business needs and how developed it is.

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