3 Things Innovative Companies Can Do to Capitalize on Trends and Capture More Workers
The gig economy has proven to be an unstoppable segment of the labor force. In the United States alone, the gig economy is 60 million workers and counting, growing at 16% to 17% annually.
In recent years, the gig economy has shown its depth and diversity. Once known as independent contractors or freelancers, gig workers can be anyone from a highly paid actor or attorney working on a project basis to a delivery driver or day worker.
As the definition of a gig worker has expanded, so too have the types of available gig opportunities, the incentives to take on gig work and the training and education for gig workers. And innovative companies are starting to take notice. A recent study by Deloitte found that 75% of 250 firms surveyed are considering hiring gig workers for their open positions this year, stemming from a surge in employers seeking workers with skills in technology – namely data science, cloud computing, cybersecurity, and artificial intelligence, among others. In 2024, these trends will continue to evolve and solidify the prominence of the gig workforce, and shape how technology and other forward-thinking companies can adopt new practices to capture the tremendous value of gig workers.
The Top Gig Economy Trends this Year
New gig opportunities emerge
Gig jobs are an opportunity for workers to generate extra income while maintaining the freedom to work how and when is most convenient. As a result, several new employers are entering the space to meet the incredible demand for flexible, on-demand work. Delivery services and rideshare are now only part of the equation. In 2023, nearly half of all gig jobs were for work in computer programming, IT or marketing. Next year, the structure of the gig workforce will continue to evolve as companies look for ways to leverage independent workers for a variety of different tasks.
More opportunities, more work
Workers are participating in the gig economy more than ever before. Thanks to a wealth of new opportunities, gig workers are picking up extra jobs and working more often, a positive cycle that is propelling the growth of the gig economy. Today, it is common for workers to have jobs with multiple gig companies, and 60% of workers are pursuing multiple opportunities across industries.
Core earnings drive gig shifts
Gig work has traditionally been an opportunity for workers to augment their discretionary income, but that is increasingly changing. Today, gig workers are more likely to use their earnings to pay household bills. According to research from PayQuicker and the Ultimate Gig Research Project, about half of gig workers use their earnings to pay household bills, up significantly from 2020, when only 37% made the same claim. In 2024, the portion of workers using gig income to meet basic needs will continue to increase.
Organizations invest in gig-worker training
All workers are essential to the success of a business, full-time and gig workers. As a result, we expect to see more organizations investing in gig workers by providing critical training and education. Although some types of gig work require specific skills, training and educating workers will increase the success of each job and maximize value for the organization.
Some tech companies are even going as far to provide free education for the public. In late 2023, Amazon launched free AI classes aimed at training two million people as the fight for skilled workers ramps up with Microsoft and Google.
Tapping into the Gig Worker Model
As the gig economy evolves, tech organizations must also evolve practices and policies to develop a loyal relationship with gig workers. In consideration of the top trends emerging this year, here are three ways that organizations should also adapt.
With more gig opportunities, companies need to innovate to attract workers
Talent wars aren’t limited to full-time workers. The expansion of the gig economy has heightened competition among organizations. To attract quality workers, companies will need to innovate to attract and retain employees and create worker loyalty. Tech employers must consider providing the incentives, competitive pay and other benefits they are notorious for providing to traditional ‘9 to 5’ workers. In addition, other functions, like the ease of the work platform that facilitates viewing and accepting jobs, ease of payment and overall flexibility will also help companies build a strong relationship with workers.
Create an internal gig network
In 2024, it’s clear that tech companies will need to compete for workers—but there may be one valuable yet overlooked resource for gig work: a company’s current full-time workers. Companies can leverage the existing talents of its workforce (which will already be trained and knowledgeable on company policy and procedure) for flexible work opportunities. Through an internal network, companies can offer extra, flexible and on-demand work to existing employees, who can complete tasks in their off-hours for extra income. This is a great strategy to tap into an existing and experienced labor network.
Core earnings call for same-day pay
On-demand work calls for on-demand pay, and as the gig economy evolves, so too do worker expectations for speed of compensation. Already, 83% of gig workers have said that immediate payment was an important factor in accepting a new job, according to the PayQuicker study. As gig workers continue to use gig income to support basic needs and household bills, they will expect instant payment. Companies looking to compete in the gig economy must adopt an instant pay option for workers, who can receive compensation immediately following the completion of a job or work day.
By 2027, an estimated 100 million Americans, or 40% of the adult population, will participate in the gig economy. The gig economy as we know it today is still in its infancy, but it is clear that gig workers are a force that companies cannot afford to ignore. As the sector grows and evolves, companies that want to participate must evolve in step.
