Every day there are news stories about the so-called gig economy where workers contribute part or full-time labor — not as employees with benefits, but as independent contractors. Dara Khosrowshahi, the CEO of Uber, the ride-sharing giant, proudly declared on September 10 that “very few brands become verbs”. The same week Upwork, a platform for hiring freelancers, filed for an IPO, as did Fiverr, which boasts that it offers a “freelance services marketplace for the lean entrepreneur.” Indeed, the gig economy has not only turned millions of Americans into contractors, but it’s given the more successful entrepreneurs the tools to grow even faster. A fast-moving startup can secure talent as it needs it, outsource more quotidian tasks like payroll, and stay lean and mean; indeed, I see entrepreneurs employ this approach through my work at EY supporting creative, successful startups.
Myths of the Gig Economy, Corrected
There are lots of myths about gig work, whether full-time or part time. It’s growing, but not as much as you think, and in ways that may be very different than you imagine. Four myths in particular are worth dispelling. First, that Millennials love to gig. Sixty percent of millennials — those born between 1981 and 1996 — were not involved in the gig economy at all, and only 24% report earning money from the gig economy. Second myth: We’re all going to be giggers. Only about 10% of workers rely on gig arrangements for their full-time jobs. Myth No. 3: Gig is better. While the gig economy can benefit companies and is likely to expand, it’s not for every business. Last myth? Gig work is unfulfilling. Top talent wants to be able to choose who they work with and what they work on.