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Could The Gig Economy Work For You?

The gig economy has come in for a bashing recently, but for thousands of people it's a great way to earn a living while working flexibly.

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The gig economy has come in for a bashing recently, but for thousands of people it's a great way to earn a living while working flexibly.

Opinions

Could The Gig Economy Work For You?

The gig economy has come in for a bashing recently, but for thousands of people it's a great way to earn a living while working flexibly.

Share this article

A brave new working world?  Or a growing community of under-supported freelancers? The Gig Economy could be the answer for many people who need a flexible career or a way to supplement their income – if they tackle it properly.

Technology has helped bring about an on-demand economy.  Access to services and products through mobile apps hasn’t just brought convenience to the consumers, it’s turned many hundreds of people into entrepreneurs.

There are more than 30,000 Uber drivers in London alone and, with more and more jobs accessible piecemeal, through a smart phone, the Gig Economy has gone mainstream. Traditional working life may never be the same again.

But not everyone is convinced this is all for the best.  The rise in self-employed workers is making many individuals ineligible for sick pay, maternity or paternity leave and other workers’ rights.

A recent employment rights tribunal involving logistics firm CitySprint and a bicycle courier is being held up as a landmark case.

The court found that Maggie Dewhurst should be categorised as an employee rather than self-employed and that she should be entitled to holiday and sick pay. Similar courier companies are facing challenges which will be heard later this year.

But those that have jumped on news of this case as proof that the Gig Economy isn’t working are missing the biggest attraction of gigging.

Surely the beauty of the Gig Economy is not to work on a zero-hours contract in a company you don’t love, without the security of a full-time job?  The Gig Economy offers freedom – and that freedom is allowing people to experiment with their careers before making a finite change.

The idea of a traditional 9-5 job with a fixed salary has become less appealing and, for people with family responsibilities or personal goals outside their traditional careers, the flexibility of the Gig Economy is a big lure.

Websites such as Etsy allow makers to sell their handmade or vintage products online, and popular short-term accommodation platforms like Airbnb and HouseTrip have helped many people become micro-entrepreneurs.

A quarter of adults in the UK wish they could start their own business (according to our survey in 2016) but many are held back by fear of personal and financial risk.  Motivations vary but one in ten people wanted to go it alone because of a lack of motivation or inspiration in their current job.

The Gig Economy works well for aspiring entrepreneurs. It’s ideal for anyone that has a full-time job but would like to pursue their dreams and test the waters, while they build their business, their contacts and confidence. As gigging freelancers in any industry, there is freedom to move from one project to another, gaining skills along the way.

However, it’s not always easy for employers to embrace this new working style, especially within smaller businesses. It may be difficult for a company to plan with a team that may not be 100% loyal or committed. Whose responsibility is it to train a workforce that might share the skills the company has financed with competitors?

Currently, there isn’t a framework or advice from the Government about the Gig Economy and there is a need for some guidance to help this new workforce of freelancers and micro-entrepreneurs flourish.

Employment laws haven’t changed despite the shift in how people are working and this is something that needs to be addressed. Analysis by the New Economics Foundation estimates that the gig economy has grown 72 per cent since 2010. It’s surprising that employment laws have not kept up with the trend.

It would be great to see more training and support for gigging entrepreneurs. Government, banks and pension providers should recognise the new type of worker and to shape their products, services and tax breaks accordingly.

If working in the Gig Economy appeals to you, here are a few things to consider:

- As well as being your own boss, you will also be your own salesperson. Put time into looking for work, pitching your skills against other giggers and reaching out to find your next opportunity.

- You will be running as a business so think like a business. Have work lined up in advance so you can budget accordingly. Also, keep a very close eye on your finances, have a clear budget and save money for your taxes.

- Invest in yourself. Keep your skills up to speed with regular training. See how your skills compare with people in your industry. Budget and save for professional development – whether it be short evening or online courses or a formal MBA, it is worth topping up your skills and making yourself even more appealing.

- Make the most of networking groups – stay connected with your professional community.  You never know who may have a gig for you so keep in touch with the professional contacts you make.

The Gig Economy could bring about a genuine revolution to our working lives.  It offers a freedom that will allow people to explore their professional and personal dreams. Gigging is essentially career experimenting and with the trend growing and new technology providing more ways for people to pick and choose how they work, it’s definitely here to stay.

Michelle Wright, founder and CEO of Cause4.

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Could The Gig Economy Work For You?

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