Why The Gig Economy Is The Best and Worst Development For Millennials

Introduction

An intrusive economic downfall otherwise known as a recession hit in 2008, when millennials were still in college or entering the workforce for the first time. This had a major effect on the development of careers  for millennials who found a secure career path before the recession developed, the downturn of the economy was not as hard felt for those who have been in the workforce for quite some time, but for millennials trying to find work after companies instituted hiring freezes and lowered workers’ salaries, the job market was in a drought.

During this time the gig economy was starting to make its way into the economy making it both an opportunity and a challenge. This was an opportunity for those were out of a job and needed immediate work; however, for many employers this posed quite a challenge. For employers, this caused for them to have many positions that they could not hire for and caused them potential candidates who were looking for more of a work-home balance (Alton, Larry 2016).

What Is The
Gig Economy?

According to TechTarget, a gig economy is an
environment in which temporary positions are common and organizations contract
with independent workers for short term assignments (2016). In a gig economy,
businesses save money on what they would have spent on overhead such as a business
space. This type of work allows for workers to be selective in the type of work
they want to perform and allow employers to staff for more specialized roles a
lot quicker than before.

This model is geared towards those who want to
be entrepreneurs. But for those, such as millennials who are just now getting
into their careers or are already in their careers this type of work
environment can’t be a good and a bag thing according to how they play their
cards.

Thriving
In The Gig Economy; How Successful Freelancers Mange The Uncertainty.

“Thriving
in The Gig Economy How Successful Freelancers Manage the Uncertainty,” By
Gianipiero, Petrigeli, focused on the attributes and patience one must have
thrive in the gig economy. In this study, the writer spoke with several
freelancers who have been working in this type of environmental for over five
years and have gained insight on what one needs to thrive. In a gig economy financial
insecurity is a major concern as well as the lack of human interaction. When
you are working gig-based jobs that are platform based you are waiting for
notifications to be sent to your phone, or your waiting to hear back from
potential clients regarding your proposals it becomes harder to build
relationships with those who have not already used or heard of your work.
According to one freelancer that was interviewed for this paper, who goes by
the name of Mary. Mary stated that; “Working in this type of structure is like
that of being on a trapeze.”

Produce or Parish

Another
topic that was mentioned in this article, was Produce or Parish. Produce or
parish as related to this type of work structure Is often regarded as if you
don’t obtain clients then you will parish in the form of not being able to pay
your bills or in other words be financially secure. The writer states that, “The
first thing they realized when they began interviewing independent consultants
and artists was that the stakes of independent work are enormously high— not
just financially but also existentially. Unshackled from managers and corporate
norms, people can choose assignments that make the most of their talents and
reflect their true interests. They feel ownership over what they produce and
over their entire professional lives.

Sustaining
productivity is a constant struggle. Distress and distractions can erode it,
and both impediments abound in people’s working lives. One executive coach gave
a poignant description of an unproductive day: “It’s when there is so much to
do that I’m disorganized and can’t get my act together. [In the evening,] the
same e-mails I opened in the morning are still open. The documents I wanted to
get done are not done. I got distracted and feel like I wasted time.” A day
like that, he said, leaves him full of self-doubt (PETRIGLIERI, ASHFORD, AND
WRZESNIEWSKI 2018).

Are
There Good Jobs In The Gig Economy?

In
this article the writer proposed the question, “Are there any good jobs in this
type of economy, and if so, where are they?” 
According to recent study the gig economy makes up more than half of
todays workforce, the majority of those being millennials. Millennials are more
inclined to be searching for a work-life balance in which baby-boomers were not
accustomed to. Many millennials are not interested in full-time jobs that in
their eyes tie them down to an office but for gigs that a lot them the
opportunity to work as little or as much as they want and not be tied down into
one select field.

There
is a multitude of growth that has been hitting the airways with this newly
found economy and it seems to not be stopping anytime soon. Economists estimate
that the portion of U.S. workers earning a living as independent contractors,
freelancers, temps, and on-call employees jumped from 10% in 2005 to nearly 16%
in 2015. Workers of these “alternative work credit this type of work environment
to those who are burnout, or hating one’s job for freedom, flexibility, and
financial gains. Whereas, skeptics feel that this is going to end badly for
those working in this type of economy due to lack of having benefits and
stability.

Financial
insecurity is a big and ever-present concern. So is the lack of human
connection: Kessler writes, “I don’t think Silicon Valley was wrong to attempt
to restructure the job. Our current model wasn’t working, and the startup
spirit of experimentation was necessary (Torres, 2018).

The Future of Work is Flexible

Flexibility
in the workplace is defined differently amongst individual workers. However;
the common denominator amongst all workers is that when working in a flexible
environment one is allotted the opportunity to make choices on where and how
long they spend on work related task. Recent trends in availability of those
working flexible jobs have seen a recent spike in flexibility in the workplace.
Employees in this type of environment may have flexibility regarding the time
in which they start and end their work-related duties and as in where they can
complete their work. In this article two researchers go into detail on how this
type of environment has shaped the recent economy and how this work environment
poses its own separate challenges.

According
to researchers Kerr, and Nevin, the world of work
is transforming: technological, socioeconomic and demographic shifts are
changing the way we think, demanding greater flexibility in how both
individuals and organizations operate. In fact, the concept of employment
itself seems to have passed its sell-by date. This type of online work has made
it easier for those to find jobs/ complete tasks for those who are seeking the
help.

This type of environment is more cost-effective for
employees due to the nature of them not having to purchase additional office
space for employees and not having to offer many of the benefits that they
would have to offer if their employees were working at the office on a
full-time basis.  (Kerr, 2017).

Challenges:

According to
researcher Jamie Kerr, although this type of environment brings on a good
connotation allowing those workers the work-life balance they are seeking there
are still some drawbacks that many companies and employees are facing. “There
is then the debate as to whether employment regulations and practices are still
fit for purpose. The new explosion of small-scale entrepreneurship might make
you wonder whether we’re returning to the kind of economy espoused in 1776 by Adam Smith
in The Wealth of Nations (Kerr,2017).

The rise of this new
economy is defining what it really means for one to work for self. One key
problem is that many individuals find it hard to distinguish between employment
and self-employment. There is little clarity in the statutory definitions of
employment status, although there is a body of case law. Statutory sick pay,
statutory maternity pay, training support and employer pension contributions
are some of the occupational benefits that an employee will forgo when they
become technically self-employed. As more people do this there is growing
pressure for the law to be simplified (Kerr,2017).

Summary

Full-time
employment was once known as job security and stability and is now becoming
increasingly rare. Employers are now creating less full-time positions and are
starting to outsource many of their positions to workers who find work on sites
such as Upwork and Flex jobs. For the growing number of people seeking
employment, working a gig is becoming increasingly safer.

Living without those benefits you would receive from a more
conventional work environment may seem reckless, but with proper planning, you
can manage a career working gigs/freelancing that can be just as stable. Working
in this environment you have more control over the jobs you would like to take
on as well as have a work-life balance and therefore you are seeing more
millennials then any other age demographic working these types of jobs. It remains a mystery as to whether the gig economy is a
healthy alternative to working a conventional 9-5 for economic development
overall, but for millennials, it’s certainly both.

For young workers who are seeking to make an
extra income to help pay for college or to even move out of their parents’
house, this type of economy can be quite frustrating, but for those who have
built a life around gig work and want to gain a multitude of experience in
various industries the gig economy it a great way to achieve those goals. Regardless
of how you feel about it, the gig economy is likely to stick around for the
foreseeable future (and experience even further growth), so it’s best to learn
how to take advantage of it for yourself—and avoid the pitfalls that your peers
are facing (Alton, Larry2018).

References

PETRIGLIERI,
G., ASHFORD, S., & WRZESNIEWSKI, A. (2018). THRIVING IN THE GIG ECONOMY.
(cover story). Harvard Business Review, 96(2), 140-143.

TORRES, N.
(2018). ARE THERE GOOD JOBS IN THE GIG ECONOMY. Harvard
Business Review, 96(4), 146-147.

Kerr, J.
(2017). The future of work is…flexible. Director, 70(10), 60.