How to Adapt to the New Gig Economy

By 2027, more than half of the United States workforce will be made up of gig workers.

The gig economy, ushered in by the 2009 invention of 4G and the subsequent increase in mobile internet speed, gave birth to companies such as Uber, Airbnb, and Lyft. However, these businesses were just the beginning.

Today, other significant forces have made the gig economy a more flexible, long-term option for workers and businesses alike. These forces have included: “The Great Resignation,” new technologies, and the rise of digital nomads due to the COVID-19 pandemic.

“The Great Resignation” recently reached an all-time high last spring when the U.S. Bureau of Labor Statistics reported that a record-breaking 4.53 million employees had left their jobs. This mass exodus of employees sent a loud and clear signal to employers that the workforce is due for some changes–chief among them is flexibility.

It is no surprise that employees who are disinterested in conventional work styles have been drawn to gig work. Working for somebody else from “9 to 5” simply isn’t cutting it anymore.           

In a recent Statistica survey, 71 percent of independent contractors in the United States said that they participated in freelance work to have flexibility in their schedule. Furthermore, the latest Pew Research report shows how the gig economy brought about a new way of connecting workers with businesses looking to hire help. A vast majority of U.S. adults–94 percent according to their report–believe gig platform jobs are a good way to earn extra money while providing the flexibility they crave.

Workers aren’t the only ones seeking greater flexibility, however.  Many companies have altered their workforce significantly to include more gig workers. Over 80 percent of large American-based businesses plan to “substantially increase their use of a flexible workforce” and 50 percent of organizations have already done so.

One growing factor that has allowed more workers and businesses to shift to more flexible gig work has been the recent rise of new technologies. Those with a laptop or cell phone can instantly post or find work using platforms designed to support this new way of work.

Fabio Rosati, the former CEO of Elance and Upwork, said, “Today the opportunity for freelancers is exploding, as is the development of tools allowing people to work independently. An independent contractor today can monitor job demand online, connect with businesses anywhere, and completely automate payment collection through these platforms.”

Hyer is another platform that connects businesses to on-demand labor and individuals to immediate work in real-time. These workers, called “Taskers,” can download the app, create a profile and find local gig work instantaneously. Co-founded by CEO Dave Dempsey, a former PepsiCo executive, Hyer was designed to support the flexible labor needs of both businesses and workers. Since launching in 2019, Hyer has grown to include hundreds of thousands of gig workers across 27 states–helping numerous businesses tap into a new pool of labor that is eager to work.

“Not only does Hyer help companies scale their workforce and respond to the fluctuations in labor demands, it also serves as a simple way for people to find flexible work-which is paramount these days,” said Dempsey.

With the pandemic pushing more people to reevaluate what they want from a job–and from life–McKinsey’s latest American Opportunity Survey (AOS) shows that independent work is booming-and suggests a seismic shift in how Americans work and support themselves.

Dempsey, too, is watching this shift take place in real time. “While some Taskers use Hyer as a way to supplement their income as inflation rises, others have left the workforce and embraced gig, seeking to create more balance in their lives. Whether it’s a side hustle–or their full-blown gig–92 percent of our Taskers have indicated that they are more satisfied with gig work than traditional jobs. In other words, gig work is here to stay,” he said.

Labor apps like Hyer have provided the means for more workers to enter the gig economy. According to GoRemotely, “75 percent of freelancers believe that platforms like Upwork and Fiverr made their work life easier.” As more apps like these emerge, gig opportunities will continue to grow-allowing businesses to crack the code when it comes to hiring the help they need.

Another factor that solidified the gig economy’s place in the job market was COVID-19. As the pandemic turned the traditional workforce upside down, the gig economy grew by over 30 percent.

The pandemic allowed those with full-time jobs to experience working from home, or even abroad. Now, as employees are being called back to the office, digital nomads are less enthusiastic about returning to their roles. This is making gig work appear even more appealing.

The hesitancy of employees to return to the office became glaringly obvious with Elon Musk’s recent announcement that all full-time Tesla employees must return to their offices. The announcement has sparked intense pushback as people are advocating for the productivity of remote work.

It would not be surprising to see gig worker numbers further increase as companies wrestle with the decision to require employees to work in-office. After all, according to a 2022 study, most digital nomads are now self-employed, and 36 percent freelance for multiple companies.