In this modern, digital age, new trends continue to emerge throughout the various industries. As the tech industry grows and expands, it’s perhaps easier to see the effect of these trends in the tech world, compared to other fields.
One trend is making repeated headlines due to its projected, rapid growth over the next few decades. Known as the gig economy, this type of environment encourages temporary positions, short-term engagements and increased employee mobility.
In this article, we’ll examine the impact of the gig economy in the tech industry, as well as provide tips for tech workers who are considering a move toward this type of employment.
If you’re unfamiliar with the concept of the gig economy, it defines the modern trend of companies hiring short-term workers and independent contractors. The tech industry is a viable field for this trend to thrive, as the Internet — and increased sharing capabilities — provides the ability for employees to work remotely.
Today, gig workers make up about 34 percent of the workforce, and by 2020, that number is expected to rise to 43 percent. So, why the rise, and what are the factors driving the projected growth?
First, we can consider the impact on businesses. With employees working remotely, companies save money and resources on office space and supplies. Additionally, businesses can also see a financial benefit from hiring freelancers vs. full-time employees, as less money goes to benefits and training.
Investing in the gig economy, compared to a more traditional workforce, is not considered a benefit for all business owners, however. Considerations such as increased turnover, less structure and a cultural shift can negatively impact the productivity and output of a business.
Although its success is dependent on the company structure and management of remote employees, business owners should consider both the pros and cons of moving toward the gig economy.
For tech workers, carefully evaluating the benefits and drawbacks of the gig economy is even more imperative, as deciding to engage in more short-term work directly impacts employment now – and in the future. Let’s evaluate those pros and cons.
Many workers in the tech industry love the appeal of working remotely and independently. Entering the gig economy might seem like the next, natural step in pursuing the ideal career for those worker. Here a few additional benefits to further support that goal.
Perhaps the greatest benefit, however, is the ability for tech workers to pursue employment that appeals to their skillsets, as well as to their interests. 60 percent of employees cite the ability to perform in a role they do best as “very important” to them. For these employees, the gig economy is an attractive environment full of variety and opportunity.
Although the gig economy has its benefits, there are potential drawbacks for tech workers to consider as well. Let’s review the cons associated with this type of employment.
The gig economy provides a wealth of opportunity and diversity for the modern workforce, and all signs point to its continued growth and popularity. As the tech industry also continues to grow and expand, it will be important for both tech workers, and employers, to consider what it would mean to join the growing trend of the gig economy.
About the Author: Nathan Sykes is a business blogger and tech enthusiast. To read his latest articles follow him on Twitter @nathansykestech.