Bringing in a New Year creates a sense of renewal and opportunities. Yet, many small businesses have a ‘wait and see’ attitude riddled by uncertainty and unpredictability of the future. Most organizations have limited resources and must be cautious about their business growth. If you own a small business, what could you do with an extra stack of cash in your pocket by reducing your expenses while improving the quality of your goods and services? Over the last few years, I have been researching the freelance market in order to assist small businesses with the resource deficiencies that most organizations face.
With uncertainty in the market and competition at a peak, most organizations should rethink their business strategies. December’s outlook was not entirely positive. The fourth-quarter marked the worst start for stocks in 10 years. Many experts are skeptical about the economy for several reasons including: failure of popular tech stocks and the fallout from the trade fight between the U.S. and China. There is a weakening global economy that is wreaking havoc to U.S. companies. According to the Commerce Department in December, U.S. factory outputs were showing signs of slowing down. All of these realities demonstrate that businesses are not safe by maintaining the status quo. Things are changing… like it or not. One of the glaring trends was a search globally for talent. While Fortune 500 Companies have the financial strength for this international initiative, most small businesses could not do this… until now. In this discussion, we examine how today’s small businesses can leverage the power of the gig economy to secure great freelance talent to maximize their performance.
The gig economy allows small businesses to compete with others more effectively. A gig economy is “an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.” The gig economy is about talented individuals (i.e., graphic designers, programmers) who decide to become freelancers, whether by choice (independence and freedom) or not (i.e., downsizing, layoffs). The trend toward a gig economy has begun. According to a study by Intuit, 40% of American workers would be independent contractors by 2020. In any case, the future workforce will be increasingly mobile and global. In this gig economy, businesses can save resources in terms of benefits, office space, and training. In fact, organizations obtain short-term contracts with experts who might be too expensive to maintain on their payroll.
Freelance websites like Fiverr.com and Upwork.com offer small businesses an infusion of global talent. Most Americans are familiar with Uber and Airbnb in the freelance industry. However, there are lots of more businesses. Fiverr is one of the leading freelance websites where buyers can purchase a service or product for a gig ($5). Fiverr allows freelancers from anywhere in the world to connect. It enables people to make money easily or find a service in need while they are at home. If businesses need to promote their organizations (i.e. logos, posters, media releases) or need advice for their organization (i.e. competitor’s analysis, social media audit), Fiverr is the right place to begin. Furthermore, Fiverr users offer services, such as graphic design and programming. Treat the freelance purchase like any other online purchase. Do your homework.
Before selecting any freelancer, it is always better to obtain a recommendation from close acquaintances. You will be amazed at what businesses are already using freelance websites. Always read several reviews for one seller for at least several weeks before purchasing. Below are the top services for small businesses to consider:
- Business Card Design
- Content Development
- Custom Logo Design
- Editing/Proofreading
- Market Research
- Product Packaging Design
- Promotion (i.e., Promotional Materials, Social Media)
- Video Production
- Virtual Assistant
- Website Evaluation
In summary, most small businesses are trying to grow with limited resources. Buying services with the fractural of cost and efficiency could help many businesses. This article explained how today’s small businesses can leverage the power of the gig economy to secure great freelance talent to maximize their performance. With more than 3 million services on Fiverr.com, finding the right freelancers is a difficult task. There are many inferior or poor-quality products and services. Buyers need to beware. I have spent several years trying to figure out the diamond in the rough. Find help to secure the right talent for your business. Tap into the global talent today and grow your business.
Please share your ideas on this topic.
© 2019 by D. D. Green
Nu Leadership Revolution Blog 
As a business owner, I’ve experienced the benefits of sites like Fiverr.com on the consumer side saving on graphic design. But the drastic cost savings caused me to question both the quality of work and quality of working conditions brought about by the growing gig economy. While proponents tout flexible working arrangements for individuals choosing to work outside of the traditional employee-employer relationship, the lack of stability and company provided benefits might outweigh the ‘perks’. While it may benefit a small business like mine and an individual trying to earn additional income on the side, we must consider the impact the gig economy has on workers who are solely employed through gigs. As industry giants like Uber leverage the gig economy, the impact is much wider. ‘Because they claim not to employ the people providing the service, who are considered independent contractors, gig businesses deny having an employer relationship or the responsibility to follow labor laws. Therefore, most do not provide benefits such as health or workers’ compensation insurance. (Tran, 2017).’ Should we attempt to mitigate these concerns through legislation? Without stricter regulations, are you concerned we may see the technological equivalent of the child labor violations that outsourcing brought?
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Tran, M. (2017). The Gig Economy and Contingent Work: An Occupational Health Assessment. Journal of Occupational and Health Assessment. 59(4). Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5374746/
Jamie,
The article you cited was very interesting. Your concern is one that I have also had and looking at it from at it from a medical / healthcare standpoint was eye opening. One article on this subject that I found insightful was Three Paths to Update Labor Law for the Gig Economy (Kennedy 2016). This article calls for “Congress and the states [to] reform labor law for the so-called “gig economy” by amending all major labor statutes” (Kennedy, 2016). I feel that the changes that Kennedy proposes in his article would help protect gig workers from poor work conditions and help ensure that they are being treated fairly by their employers. As this segment of workers grows, I hope that people like Kennedy and Tran will be able to convince law makers that making changes or a carve-out to current employment laws will be beneficial.
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Kennedy, J. (2016, April 16). ITIF. Retrieved February 12, 2019, from https://www.itif.org/publications/2016/04/18/three-paths-update-labor-law-gig-economy
Hi Jamie,
I do not believe that this is something that the government needs to necessarily legislate unless it is truly hurting people. It is the gig employees choice to work on their own and in cases like Uber they are able to work as much or as little as they want and they can quit whenever they want to. Often times these gig economy employees are able to have the costs that they do. Putting burdensome laws and regulations could slow the growth of this entrepreneurial economy. Why cause more hoops for people and companies to jump through? There is some satisfaction in being able to sink or swim on your own and when you choose the entrepreneurial life or to be part of the gig economy you are willingly giving up the safety nets that corporations give you. In a Harvard Business Review study they interviewed 65 gig workers and came to this conclusion “All those we studied acknowledged that they felt a host of personal, social, and economic anxieties without the cover and support of a traditional employer — but they also claimed that their independence was a choice and that they would not give up the benefits that came with it” (HBR, 2018). In my opinion, we should allow these people to take risk and go out on their own without having the government get too involved.
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Ashford, S; Petriglieri, G; Wrzesniewski, A. (2018). Thriving in the Gig Economy, Harvard Business Review.
Retrieved From: https://hbr.org/2018/03/thriving-in-the-gig-economy
Jamie –
Interesting points here regarding your own business owner perspective on the gig economy. It does create an interesting relationship between the gig/host and the independent contractors doing the work. If you are looking to utilize a website like Fiverr.com to find an independent contractor to do some work for you, it can be hard to get a feel for what exactly you are getting from the worker. “Sometimes, gig economy workers are looking for remote jobs because they aren’t willing to work as hard. This is unfortunate for businesses, and they should be thorough in setting up expectations and in selecting freelance workers to ensure they will have a reliable employee,” (University, 2018). Businesses need to be aware of this risk they are taking on when they bring in workers from the gig economy.
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References
University, W. G. (2018, August 31). The pros and cons of the gig economy. Retrieved from Western Governors University: https://www.wgu.edu/blog/pros-and-cons-gig-economy1808.html#close
Jamie –
Interesting points here regarding your own business owner perspective on the gig economy. It does create an interesting relationship between the gig/host and the independent contractors doing the work. If you are looking to utilize a website like Fiverr.com to find an independent contractor to do some work for you, it can be hard to get a feel for what exactly you are getting from the worker. “Sometimes, gig economy workers are looking for remote jobs because they aren’t willing to work as hard. This is unfortunate for businesses, and they should be thorough in setting up expectations and in selecting freelance workers to ensure they will have a reliable employee,” (University, 2018). Businesses need to be aware of this risk they are taking on when they bring in workers from the gig economy.
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References
University, W. G. (2018, August 31). The pros and cons of the gig economy. Retrieved from Western Governors University: https://www.wgu.edu/blog/pros-and-cons-gig-economy1808.html#close
The gig economy has more pros than cons and we are going to explore a few reasons why. The gig economy is a rapidly-growing venture in our world and I find it intriguing, the possibilities are endless. Miles Jennings scoped out seven of the positives that are seen through this economy: flexibility in pay and hours, variety of work, possibility for ‘enough’, mimics entrepreneurship, outlet for growth outside of traditional jobs, ease for employers and the vast amount of potential for new opportunities (Jennings, 2018). Like Jennings, I find this economy a huge step for many people who are looking for a start or looking for new avenues to use their skills/knowledge. Personally, I would love to utilize this opportunity if I had the talents that prove to be popular on the market. I am definitely going to recommend these sites to my cousin who has recently started a business with two other investors. This resource would provide him with a variety of individuals who could enhance his business with just a few small gigs. All in all, this venture is great but like Dr. Green mentioned – research is crucial!
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Jennings, M. (2018, April). 7 Reasons Why the Gig Economy is a Net Positive. Retrieved from: https://www.entrepreneur.com/article/310685
Hi Katy,
Thanks for your opening remarks! Freelance websites like Fiverr.com allow small businesses and entrepreneurs to tap into more affordable services.
As you know, cheaper is often not better! However, the value of services and the exchange of funds look differently in a global marketplace.
Thus, how does one evaluate services like graphic design in a global market? Is it really a good deal or not?
Dr. Green
Katy and Dr. Green,
Your post made me think about the viral challenge that I have seen from many artists and graphic designers where they will create a design in several different time allotments or with various resources and the end result. They concept for the challenge is to show how a client requests their art or design will affect the end result. The Box Office Artist displays this very well in his video where he attempts to create a drawing of Spiderman in 2-Hours, 20 minutes, 2 minutes and then in 20 seconds (The Box Office Artist, 2018). When a client approaches an artist there should be a discussion and dialogue about the end product wanted and the realistic parameters about time, resources and pricing.
TheBoxOfficeArtist. (2018, August 26) DRAWING SPIDER-MAN in 2 HOURS, 20 MINUTES, 2 MINUTES, 20 SECONDS! ART CHALLENGE![Video File]. Retrieved from https://www.youtube.com/watch?v=3Qr5do9xV2k
Dr. Green,
I could not agree more – cheaper is often not better! But like we have considered in many different discussions, research is crucial to any new venture for a business. Whether a small business is just starting or they have a steady income, they still have to research the market and find out what makes it tick, what are the consumers looking for. With that being said, researching freelancers and finding solid, reliable reviews is just as important. The freelancing market is growing, therefore, that means that so is the variety of individuals with skills who will become freelancers. ‘Approximately 57 million Americans were freelancing in 2017, and if trends continue, over half of American’s will freelancing by 2027 (Duermyer, 2018)’. In the global marketing scene, I would find it hard to evaluate the service that is provided for graphic design. In the article I found it discussed that some of the jobs are ‘one and done’ and that is one of the cons for freelancers but it becomes a steady growth of business for the freelancers when they provide excellent, consistent work for their consumers.
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Duermyer, Randy. (2018, December 31). A Freelancers Guide to the Gig Economy. Retrieved from https://www.thebalancesmb.com/what-is-freelancing-1794415.
Katy,
Very good points!
In a previous post, I believe Jamie mentioned the impact of the gig economy on the welfare of the freelancers (i.e. the Sellers). The majority of them in the US have no benefits such as vacation, health care, and retirement.
All,
Should that be a concern of the marketplace or the government (i.e. the common good of all)?
Dr. Green
Dr. Green,
I think the rush of popularity in gig economies might push the workers into a worse place over time. In its initial state, there were people using the broad reach of the internet to offer up their services to those willing to pay. These gig workers are foregoing time that may have been spent in full-time employment, however, their ambition allowed them to find additional ways to work and make money. As more potential gig workers see this as an opportunity for work, more will push their way into the market, thus increasing competition. I think this could be dangerous as, “Gig workers also run the risk of inconsistent employment, meaning they must either chase down their own freelance work or hustle in the on-demand space,” (Uzialko, 2017). I feel it’s hard to say where the gig economy will be down the road, but factors like this could have an impact on whether people continue to pursue time as workers in the gig economy, or focus their efforts on full-time work where normal work benefits are more available.
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References
Uzialko, A. (2017, July 13). A Mixed Bag: Navigating the Ups and Downs of the Gig Economy. Retrieved from Business News Daily: https://www.businessnewsdaily.com/10077-gig-economy-pros-cons-workers-employers.html
Taylor,
I like your reply for Dr. Green, I think that the appeal to staying home and working could flood the gig market and make it hard for people to have stable work. The gig workforce is estimated to grow from 34% to 43% by 2020 (Alton,2018). This can make it hard for a younger worker looking for a full-time job with benefits when companies are using more employees from the gig workforce. I have worked as a consultant for a while and it is something that I never cared to do. While the pay is always a little better, I had to pay my own taxes, healthcare and retirement if I chose to contribute to it. The other downside is when work slowed down consultants were the first ones who were not brought back to jobs. I think something like the gig market is good for making extra money on the side or if a retiree wants to earn a little extra money. But when it comes to people just entering the job market, I think finding a full-time job with benefits are better.
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Alton, L. (2018, January 24). Why The Gig Economy Is The Best And Worst Development For Workers Under 30. Retrieved February 14, 2019, from https://www.forbes.com/sites/larryalton/2018/01/24/why-the-gig-economy-is-the-best-and-worst-development-for-workers-under-30/#5e3241be6d76
Hi Katy,
You stated “Personally, I would love to utilize this opportunity if I had the talents that prove to be popular on the market”. And personally, I would love to as well. I think both of our feelings alone prove the importance of the gig economy. The people who are already working and involved in it are happier than corporate employees (Stillman, J, 2017) and the people who are not involved in it want to know what it takes to get involved. The Harvard Business Review has an article that is “The Four Things You Need to Thrive in the gig economy. The four things are place, routines, purpose and people (HBR, 2018). The article states “The first thing we realized when we 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” (HBR, 2018). This shows that the risks are high but so are the rewards. This article would be worth your time to take a look at.
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Stillman, J (2017) Entrepreneurs are Happier and Healthier than Employees.
Retrieved From: https://www.inc.com/jessica-stillman/research-entrepreneurs-are-happier-and-healthier-than-employees.html
Ashford, S; Petriglieri, G; Wrzesniewski, A. (2018). Thriving in the Gig Economy, Harvard Business Review.
Retrieved From: https://hbr.org/2018/03/thriving-in-the-gig-economy
I would have to agree with you and also agree with Dr. Green that most of the time cheaper is not always better. The gig economy life style is not for everyone. I found your article very interesting and insightful. I like how it laid out the pros and cons and the reader was able to relate to the article. These type of sites for the gig economy stuff are new and ever changing. I think that someone should do their research and know what is going on before jumping in head first to anything. I agree with your outlook on the small business aspect. I agree that this is and could be a great tool for small businesses. But most of all, your last statement, research is crucial is a very true statement. Just as with anything else, when something is new it blows up and become very popular very quick, but sometimes the research and data doesn’t seem to keep up. Good post and good article.
One thing that has always concerned me about hiring workers from the gig economy is the ability to adequately vet potential job candidates. Liu (2018) looks at this in his article ‘6 Warning Signs That You’re About To Hire The Wrong Freelancer’. Liu has had the advantage of working in large companies with the backing of a solid human resources department as well as hiring freelancers to help build his startup. Though this transition Liu was able to objectively look at his hiring choices and learn how to better avoid poor performers. One sign that Liu pointed out was to be leery of people who are late to initial meetings. This is something that we should all watch out for because job candidates “are often on their best behavior when trying to win your business” (Liu, 2018) or a place in your company. A second sign that he noted was to make sure you trust your gut instinct. I am sure many of us have made bad hiring decisions because we needed ‘a body’ when we knew deep down it was a poor fit. This usually ends poorly for both the employer and the candidate. I believe that freelancers are here to stay, and Liu’s article provides some great advice for those looking to hire from this candidate pool.
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Liu, J. (2018, October 02). 6 Warning Signs That You’re About To Hire The Wrong Freelancer. Retrieved February 11, 2019, from https://www.forbes.com/sites/josephliu/2018/10/02/signs-wrong-freelancer/#7347d07d7879
Hi Michele,
Thanks for your thoughtful points!
I agree with you; vetting all freelancers must take place.
Since about 2015, I have been evaluating Sellers on freelance websites like Elance.com and Fiverr.com.
Yes, I have been disappointed on a few occasions (i.e. poor quality, lack of responsiveness). Yet, failures often bring success. I have learned from those mistakes.
As a result, I’m in favor of freelance websites for securing affordable services. In fact, I love having access to global talent as a small business owner. I have built my master expert list based on my own experience (or referrals from others). My preferred freelancers are customer-focused and quality-oriented. Like using Ebay.com or AirBnB, buyers need to be careful.
Here’s a list of the top freelance websites since 2018:
https://fitsmallbusiness.com/best-freelance-websites-small-business/
All,
Is one freelance website better than another?
Dr. Green
Michelle,
I love the process of interviewing and evaluating talent. In my future career I hope to be in the Talent Development area of a company and be able to match great people with the perfect job in an organization that I believe in. You are spot on with your assessment of vetting talent. I believe those traits like promptness, interpersonal communication and emotional intelligence are essential for any client facing role. Some researchers even go as far to say that soft skills are essential as a person attempts to grow their career because hard skills can easily be outsourced to a third-party like a freelancer (DeLong, 2018). In a situation where you were looking for a freelancer for a short-term project, how much emphasis, if any, would you put on that freelancer’s soft-skills?
DeLong, D., & Elbeck, M. (2018). An Exploratory Study of the Influence of Soft and Hard Skills on Entry Level Marketing Position Interviews. Marketing Education Review, 28(3), 159–169.
Jesse-
I feel that a solid set of soft skills are important for freelancers. Four soft skills that Akhtar notes in his article as essential are communication, being organized, being able to solve problems and being dependable (Akhtar, n.d.). Since many freelancers have limited ‘face-time’ with those who have hired them their ability to execute these skills well may be what makes the project work. If a freelancer is deficient in any of these skills it could cause projects to veer off course, thus causing the hiring company to incur extra cost or decreased efficiency. In turn this would cause the freelancer to receive poor reviews and have a harder time finding additional jobs. In a market such as freelancing this could be detrimental to one’s career since most jobs are short term or project based.
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Akhtar, H. (n.d.). Hassan Akhtar. Retrieved February 12, 2019, from https://wpgurus.net/hard-skills-vs-soft-skills-things-you-need-to-know-as-a-freelancer/
Michelle,
This post is very insightful. I found an article about three different types of Gig economy workers; the hobbyist, the side hustle, and the all-in player(Wonolo). When thinking about if I were the head of a business I would want to hire an all-in player. This type of gig employee is all in and are treated like full time employees. You said “One sign that Liu pointed out was to be leery of people who are late to initial meetings. ” This is very important for any company. I pride myself on how punctual I am to things. If I see someone who is already late to a meeting, especially the first, I feel as if they wouldn’t take their job seriously. Great insight!!
Wonolo Inc – https://www.wonolo.com/blog/3-different-types-gig-economy-workers-attract/
Michelle,
Good post and a good article. I like your view of the other side of the gig economy. There is always going to be the concerns and issues with hiring a free lancer or an employee of such. I like the article because it had some very good points. I am big on one thing in my life, the first impression must impress. I agree with the statement in the article that talked about when the person is late to the initial meeting, one should be concerned. That is not a very good impression to give. I also agree with the second one that you stated in your article, one should always listen to your gut. I think that your right that free lancers are hear to stay, but the key point is that hiring people need to understand the change in the candidates and adapt how the hiring process goes. If this is done, this will ensure that the proper candidate is hired and time is not wasted for the candidate or the business. I agree with the points you made, and agree that those areas should have some strong focused placed on them.
Michele,
I love this insight, mainly because it is one I did not really think of!
After thinking about it, it is true that vetting freelancers is a must simply because nobody wants to have poor service! That can easily be said about all services, however freelance services are specialized services, so I believe they need to be a little better in the service aspect of their job in order for them to be successful freelancers.
My question to you, is how do you think companies should go about vetting freelancers and what do you think they should look for in a freelancer before hiring? I agree that it is tough to weed out the good from the bad because everyone makes a lapse of judgement on someone at least one time in their life time, so how can we take the steps to carefully select the right candidate?
Thank you for your thoughts!
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Michele,
I liked the post as well as the article you chose to write about. Like you stated I think freelancers will be here to stay and so business owners that use them should do their due diligence so that they are not having to deal with unproductive freelancers. One of the signs I really think people should remember was number 5. This one talked about freelancers unable to or unwilling to show examples of related work, why should a freelancer be hired if they cannot display the type of work that they are capable of. If the candidate has limited experience, they should be honest in the interview and provide some sort of example of work they are capable of. When Liu talked about them using his job to “build their portfolio of work” (Liu,2018), this was a mistake on the freelancer’s part in my opinion. Would saying something like I would like to have the chance to show you I can perform of been a better reason to hire them? I think that it does because saying build my work portfolio sounds like they have tried to get onto bigger companies but they cannot until they build their portfolio.
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Liu, J. (2018, October 02). 6 Warning Signs That You’re About To Hire The Wrong Freelancer. Retrieved February 11, 2019, from https://www.forbes.com/sites/josephliu/2018/10/02/signs-wrong-freelancer/#7347d07d7879
Freelancing can be a fast and affordable way to get started working as your own boss. Freelancing has several benefits to explore: It’s flexible, it’s relocatable, and there’s a high demand for help. Services that Fiverr.com offer are great for a small business who is trying to get started. Freelance marketers help businesses and companies promote their brand. According to Peerism “The growth of freelancing worldwide is staggering. In the US alone, freelancers make up 35% or 55 million workers who collectively earned $1 trillion in 2016. That number is predicted to reach 43% by 2020 with some analysts citing that figure at 80% of the global workforce by 2030.” I found this research to be insightful because I didn’t realize how beneficial freelancing is.
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Peerism – https://medium.com/peerism/future-of-work-how-to-avoid-7-5-billion-freelancers-competing-for-scraps-part-1-f1268f2b66b9
McKenzie,
Thanks for contributing to our discussion!
Dr. Green
McKenzie,
I found the data in your article to be very interesting and a great tell of where the industry as a whole is trending. All the data that I have found shows that the gig economy is growing every year and becoming a major contributor to the economy in the U.S. economy. I believe that this is due to a few different concepts. The first is the fact that the gig economy is really changing entrepreneurship as a whole. People are taking their own skills and able to market them to a large customer base. This leads me to my second reason. The growth of technology favors the gig economy and freelancers by allowing them to run their business completely online. This is a huge avenue for growth within the gig economy because it allows it to be accessible to anyone. In short, I believe that the gig economy will continue to grow significantly over the next few years due to the previously stated concepts.
What do you think will cause the continued growth of the gig economy?
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Muhammed, Abdulani. (December, 2018). Five Predictions For The Gig Economy And Freelancing In 2019. Forbes. retrieved from https://www.forbes.com/sites/abdullahimuhammed/2018/12/28/5-predictions-for-the-gig-economy-and-freelancing-in-2019/#232c042a9001
With more and more companies opting to hire third parties for endless services, utilizing the gig economy is becoming an attractive outlet for anyone with a specialized skill. Companies are opting to contract out work in areas such as IT, finance, HR, legal, design, engineering and many many more. One of the challenges that is foreseeable to a company who decides to hire out a third party for a service is ensuring that the contractors comply with your organizations policies and procedures as their contract states they should. Technology can be a great resource for placing parameters on your contractors within the framework of their work (Compliance Week, 2014). Depending on the scope of the contractor’s work, the organization can place various controls on access to data that will allow them to do their work but not at a risk to the company.
The complexity of third-party management. (2014). Compliance Week, (121), 45. Retrieved from https://ezproxy.okbu.edu:2443/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=edsgao&AN=edsgcl.370999804&site=eds-live
Jesse –
Along the lines of complying with company policies and procedures I hadn’t thought of this particular piece of the puzzle (it’s important so I’m glad you brought this up). Contracting work out to freelancers can be intimidating for businesses but if utilized correctly and researched properly, it can create a new market for the company to venture into and help them with various skills that may be lacking the departments. Freelancers can be across the world and still manage to finish a job or create a graphic design for a company. That is incredible and we have to thank technology for this.
On the contrary, after a lot of thought, I am still searching for an answer to the question of how does the company ensure that the freelancer upholds policies and superb work, therefore I did some reading of my own. The best article I found was written by a man who was a freelancer himself. ‘Freelancing needs clear instructions otherwise you’re on course to unmet expectations, and then frustration (Golding, 2017).’ Golding himself made it very clear that communication is the key to success in this gig economy.
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Golding, Nick. (2017, August 21). Working with a Freelancer: How to Set Clear Expectations & 7 Tips For a Successful Partnership. Retrieved from https://www.freelancer.com/community/articles/how-to-work-with-a-freelancer
Jesse,
An excellent points! I love the depth of your comment!!!
Who is responsible for quality control as it relates to policies and procedures?
Is utilizing freelance websites like Fiverr.com or Upwork any different than outsourcing with any other third party provider outside of the US? Many companies are outsourcing with foreign companies (i.e. India) already.
Dr. Green
The concept of freelancing is a wonderful thing, but how many independent contractors are taking advantage of this system, and how many others are being taken advantage of? For those who have to freelance out of necessity (because the employer will not hire them full time), they risk not having full company benefits or even health insurance. (O’Donnell, 2019) If 40 percent of the work force will soon be freelancers, is that 40 percent that will only have these “gigs” as their main source of income? Sure, it will benefit the business and the independent contractors who are doing some freelance work on the side, but can we be certain that this number of the workforce is a good thing long term? I know when growing a business finding ways to be profitable is key, however, if the percentage continues to grow, and more and more people are flooding the market promoting themselves, the competition will get more fierce which could lead to undercutting costs and prices in order to get the job. This is a key reason why the minimum wage was established, to prevent the “I can do it for less” mentality which drove people to poverty.
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O’Donnell, R (2019) Freelance vs. Full-time: The Pros and Cons of Hiring an Independent Contractor
https://recruiterbox.com/blog/freelance-vs-fulltime-pros-cons-hiring-independent-contractor
Anna,
Thanks for expanding on the complexity of the gig economy!
All,
Who is benefiting the most? Sellers? Buyers? In your answer, I want you to consider the global market, not just U.S. citizens. Is benefits the most?
Dr. Green
Dr. Green,
Down to the nitty-gritty of it all, would be governments that benefit most since taxes are always going to be collected and they are still going to take their cut regardless of the quality or price of the freelance work. Companies benefit by reducing salary expenses but can also be hindered on the fact that the freelancer hired is not fully invested in the company because they are not full-time. On the other hand, the independent contractor can loose out on benefits and insurance but has the ability to pick and choose what jobs they want to pursue. (O’Donnell, 2019) Either way, the pros and cons of each side still end up paying their dues to the government, and the governments will be sure not to miss out on their “piece of the pie”.
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O’Donnell, R (2019) Freelance vs. Full-time: The Pros and Cons of Hiring an Independent Contractor
https://recruiterbox.com/blog/freelance-vs-fulltime-pros-cons-hiring-independent-contractor
Anna,
This is great insight on the gig economy and how yes there are a lot of positives from it, but also just as many negatives. It is tough to get a really good job in the real world so some people do rely on freelancing as a way to make a living and that is hard to do with people taking advantage of you! I loved how you brought up the “I can do it for less” mentality because that type of mentality is kind of how freelancers are employed, but also how they can become unemployed very quickly.
Do you think there is a way to control this? I am not sure if it is possible to ensure freelancers get all the benefits one might need in their life, but how could we make it a possibility?
Thanks for sharing!
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It is no secret that statistically, entrepreneurs are happier and more in control of their schedule than there corporate counter parts. 11,000 graduates were surveyed and entrepreneurship was the number one contributing factor to happiness Stillman, J (2017). The gig economy allows for employees to be on their own, but also not totally left behind. The article mentioned Uber and Air BnB. Though technically they are on their own there is a larger force behind them, helping them to make money. People want to have more control over there schedules and lives. This emerging gig economy allows them to do that. Yes benefits of corporate are lost, but there is some excitement in being able to get out on your own and either sink or swim. It is a much more rewarding way of life and I believe that this industry is going to continue to grow and allow people to become more successful and happy.
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Stillman, J (2017) Entrepreneurs are Happier and Healthier than Employees.
Retrieved From: https://www.inc.com/jessica-stillman/research-entrepreneurs-are-happier-and-healthier-than-employees.html
Quinn,
Why do you think entrepreneurship is so popular? I think the gig economy is a great thing. Being able to be in control of their schedule and everyday lives is so convenient. What are some disadvantages you think about when you think about the gig economy and the corporate side of things? I know a family who has their own house on AirBnB and they love the flexibility of their schedule.
Quinn / McKenzie,
It is all too easy to romanticize the idea of being an entrepreneur based on the flexibility an control of schedules, but fail to truly know the effort that it takes to be successful. More often than not, people cannot handle the stress of be the sole decision maker. “The responsibility of meeting his payroll was “overwhelming”. The worry about every detail of his life—could he afford to keep his car, or pay the mortgage on his house” (Schumpeter, 2014) The constant worry about “are the bills going to be paid” and trying to figure out if their marketing campaign is worth it, or a bust is something that is not really on the forefront of people’s minds. Those who rent out homes for AirBnB have to continue to push for their homes to be the top search and always make sure they have somewhere else to stay in the mean time when their home is rented out. Sure, there can be flexibility, but one is handcuffed to doing all that they can to make sure there is still an inflow of money. Just food for thought.
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Schumpeter, 2014 Entrepreneurs anonymous: Instead of romanticizing entrepreneurs people should understand how hard their lives can be
https://www.economist.com/business/2014/09/20/entrepreneurs-anonymous
Moving quickly to get your business started is a situation where utilizing the gig economy can produce fast results. “Many smaller or startup companies find freelance workers allow them to quickly scale their company. Without the need to provide office space, equipment, and benefits, small companies simply need to find people who have their own computer and are able to do the work,” (University, 2018). There could probably be an argument made for once a company has reached its target scale that it may be more valuable to invest in full-time employees. However, for fast moving startups, finding affordable and effective labor can be accomplished through the gig economy.
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References
University, W. G. (2018, August 31). The pros and cons of the gig economy. Retrieved from Western Governors University: https://www.wgu.edu/blog/pros-and-cons-gig-economy1808.html#close
Taylor,
you bring up a good point about companies needing to eventually move to full-time employees. I think about uber when I hear this. They struggled due to the people who were driving their cars. People were not doing good things and they were hurting the company. If they would have had full-time vetted employees in that situation, it could have been different. The only issue is they would have had to pay their drivers more.
Hello Taylor,
Thank you for your contributions to this week’s discussion topic regarding the gig economy. You did a good job explaining your viewpoints. I gathered from your post that the gig economy mainly targets smaller start-up companies looking for a cheap way to complete a task or project. On the contrary we are seeing this used at the corporate level too, maybe just not as often. In fact, “Corporations are also looking for more flexible and low-cost ways to hire, which freelancing platforms make possible” (Fry, 2017). In my own job we have over thirty-thousand employees worldwide and we are hiring temporary and contract workers to assist us for short periods of time on projects or just executing daily tasks. This enables the large corporations to experience cost savings as well in completing the work and not having to pay benefits to those performing the work.
Have a good week,
Brandon O’Kelly
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References
Fry, E. (2017, August 29). The Gig Economy Isn’t Just for Startups Anymore. Retrieved
February 14, 2019, from http://fortune.com/2017/08/29/the-gig-economy-isnt-just-for-
startups-anymore/
In the world today everyone is looking for the fastest way to make a dollar. On the other side of the coin, small businesses are looking to always save a quick buck. To me there are a lot of different things that come to mind when one talks about the gig economy. There are things such as Uber, Uber Eats, Lyft, project-based job workers and contractors. I found a very good article online that talks about the gig economy. The article states, “The workforce is getting Uberized. The gig economy is taking over the world. Independent-contractor jobs are the new normal. In the postrecession years, this became conventional wisdom, as more and more Americans took jobs—well, “jobs”—with companies such as Postmates, Fiverr, TaskRabbit, and Lyft. But the gig economy was then and is now a more marginal phenomenon than it might have seemed” (The Truth About the Gig Economy, 2019). The article goes on to talk about the shift in the work force. How the people that are looking for job are not looking for what used to be called careers. They are looking for the top job at the moment and then they will look for the next on when the time comes. Many people do believe that the gig economy is the way the work force is headed. “The gig economy isn’t taking over, but it has become a useful emblem of what it is like to work for a living in late-stage capitalism. No wonder it seemed to be everywhere” (The Truth About the Gig Economy, 2019). Working for Verizon I see a lot on contractors come and go, to me that is a small avenue of the gig economy that I see every day. The shift in the work force is definitely moving toward the gig economy.
Works Cited
The Truth About the Gig Economy. (2019, 01 14). Retrieved from https://www.theatlantic.com/ideas/archive/2019/01/gig-economy-isnt-really-taking-over/580180/
The trend in today’s world is heading towards a gig economy. Small businesses and entrepreneurs are always looking for cheaper and more efficient ways to grow their company at the fastest rate possible, and the gig economy trend is one of the best ways to do that. “Efforts certainly are being driven by a strong sense of mission, a belief by the entrepreneurs that their products are building a better gig economy workforce structure.” (The Gig Economy Rapidly Grows, 2019.) I personally love the gig economy structure because it almost works like a catalyst to help start small businesses and make it easier for them to have access to certain resources that freelancers can provide. In my personal experience, Fiverr is one of the best websites to use when it comes to having a need for resources because it is cheaper to use and the service you get when using Fiverr is phenomenal. It is very exciting to see the world changing towards this new structure of economy because it can really help people who want to start their own business, actually start.
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Works Cited:
Bernick, M. (2019, February 12). The Gig Economy Rapidly Evolves. Retrieved from https://www.forbes.com/sites/michaelbernick/2019/02/12/the-gig-economy-rapidly-evolves/#10b44f1164bb
The growing gig economy is a very intriguing industry that could help both a small company and the freelancer. Small companies are continuously looking for ways to cut cost and improve the bottom line. These small companies do not always have the necessary resources that can be found in the services performed by freelancers in the gig industry. I believe that a driving force in the gig industry comes from the younger generation. “As millennials move into business management and members of Gen Z begin participating in the workforce, existing attitudes about work are changing” (Muhammed, 2018). This change in management and the influence of the internet has created more and more of a push for the gig industry. With the number of startups and small companies increasing daily these freelancers have an incredible opportunity to use their specific talents to create their own brand and be compensated for it.
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References
Muhammed, A. (2018, June 28). 4 Reasons Why the Gig Economy Will Only Keep Growing in Numbers. Retrieved from Forbes: https://www.forbes.com/sites/abdullahimuhammed/2018/06/28/4-reasons-why-the-gig-economy-will-only-keep-growing-in-numbers/#7c4e793711eb
Colin,
Gig economy is so intriguing to millennials and I am part of that group. I am always trying to find extra ways to make money. It is so common to see small businesses pop up or new ways of making money straight from an app on your phone. The newest trend is charging those lime and bird scooters. It is as easy as signing up on your phone and then receiving chargers and charging scooters at night. It’s crazy all the ways people can enter into gig economy.
The gig economy is something that I have never look at, I have heard of companies like Uber and Grubhub. But since I live in a small town and am mainly working out in the country business like these normally do not operate in these areas. One of the issues that I have discovered when doing research is workers feeling they are underpaid when they work for companies like or similar to Uber and Grubhub, they use an algorithm to help determine their pay. This has led to workers feeling that they are being cheated because they are making less money and some companies are giving them less money if they receive a tip. As someone who has worked as a contractor, I understand why they are getting upset because lowering a person pay is not right to those workers. I think something like the services of Fiverr.com is excellent for both small business owners and workers. Owners can search through the website to find a worker who will provide a quality services at a price that they can afford. Then the worker who is performing the work will not feel cheated because they set the price.
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Captain, S. (2019, February 14). The fight for $15 (per hour) comes to the gig economy. Retrieved February 14, 2019, from https://www.fastcompany.com/90307420/the-fight-for-15-per-hour-comes-to-the-gig-economy
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I have had some issues getting my reply to post, so I have attached it to a reply of my test post.
The gig economy is something that I have never look at, I have heard of companies like Uber and Grubhub. But since I live in a small town and am mainly working out in the country business like these normally do not operate in these areas. One of the issues that I have discovered when doing research is workers feeling they are underpaid when they work for companies like or similar to Uber and Grubhub, they use an algorithm to help determine their pay. This has led to workers feeling that they are being cheated because they are making less money and some companies are giving them less money if they receive a tip. As someone who has worked as a contractor, I understand why they are getting upset because lowering a person pay is not right to those workers. I think something like the services of Fiverr.com is excellent for both small business owners and workers. Owners can search through the website to find a worker who will provide a quality services at a price that they can afford. Then the worker who is performing the work will not feel cheated because they set the price.
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Captain, S. (2019, February 14). The fight for $15 (per hour) comes to the gig economy. Retrieved February 14, 2019, from https://www.fastcompany.com/90307420/the-fight-for-15-per-hour-comes-to-the-gig-economy
Shane,
I also was not very familiar with the gig industry and freelance work before this course. My initial thought was that it seems like a great way to make money on the side of my current job when I have free time. Since learning about this industry I have talked with several people that have investigated freelancing and they feel that the pay is not worth their time. Even with these concerns there are also reasons the gig industry is rapidly growing. One of the biggest attractions is the flexibility and being able to be your own boss. “43% list having a flexible schedule as the most important reason to work independently” (Muhammed, 2018). The gig industry is a very competitive market now and in order to stay ahead of the competitors a lot of prices are being cut. I look forward to seeing how this will change over time.
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References
Muhammed, A. (2018, June 28). 4 Reasons Why the Gig Economy Will Only Keep Growing in Numbers. Retrieved from Forbes: https://www.forbes.com/sites/abdullahimuhammed/2018/06/28/4-reasons-why-the-gig-economy-will-only-keep-growing-in-numbers/#7c4e793711eb
The newest trend in business is gig economy. The biggest reason for this is because of technology. Technology makes it easy to make money straight from your cellphone. People are starting to become uber drivers, sell products on etsy, and even charge scooters. Companies benefit from this because they don’t have to hire full-time employees to make them money and freelance workers benefit from it because they can make money on the side of their job or they can make money while in-between jobs. In an article by TJ McCue, he says, “More than one third (36 percent) of U.S. workers are in the gig economy, which works out to a very large number of approximately 57 million people” (McCue, 2018). The gig economy is so appealing to many because it is an easy way to make extra money and it doesn’t always take a lot of time. It is also very easy to maintain because a lot of times you are not on a specific schedule and get to make your own hours.
Reference
McCue, TJ. (2018, August 31). 57 Million U.S. Workers Are Part of the Gig Economy. Retrieved from:
https://www.forbes.com/sites/tjmccue/2018/08/31/57-million-u-s-workers-are-part-of-the-gig-economy/#2b89034c7118
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Hello Zach,
Thank you for providing your thoughts on the subject matter regarding the gig economy. You opened your post describing the economical shift we have been seeing in recent years and attributed it to technology. You then discussed that because of the technology boom, people are seeking gigs mainly for convenience and flexibility. I was able to find some interesting findings to further the discussion that mentioned that the gig economy has shifted from people selling stuff online to transportation services. This same article said that many people are displeased with their financial earnings when venturing out into running their own gig. () It was good to hear a different perspective about the gig economy rise. If you would like to read more about it please click on my link below.
Have a good week,
Brandon O’Kelly
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References
Rugaber, C. (2018, September 24). Why the ‘Gig’ Economy May Not be the Future of Work.
Retrieved February 14, 2019, from https://www.pbs.org/newshour/economy/
why-the-gig-economy-may-not-be-the-future-of-work
When hiring a freelancer for a job how do you decipher on how much to spend or what the level of quality is that you will receive? It is tricky business and there are so many options national and internationally to choose from. I agree and support Dr. Green’s ideas on this topic, specifically concerning the notion that it is best practice to get a referral of someone by a trusted acquaintance. In digging a little deeper to this idea aforementioned it is also a huge benefit to meet the contractor face-to-face, to learn if they may be a potential good fit. It is also recommended when deciding to higher someone to give them a little piece of the bigger project to see how they perform. In seeing how well the two in partnership are able to collaborate think of this as a test run or as a cheap insurance policy (Campbell, 2015).
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Campbell, D. (2015, February 4). Everything You Need to Know About Hiring a Freelancer.
Retrieved February 13, 2019, from https://www.entrepreneur.com/article/242406
Brandon,
You make a very good point in your response. How much should companies spend on this freelance work? It is especially important for small companies to understand how much they are spending on non-employee work. “According to an Ardent Partners report, nearly 60% of all contingent labor is unaccounted for in financial planning, forecasting, and budgeting within the average company” (Nedimyer, 2018). Understanding what exactly these freelancers are bringing to the table can help the small companies know what to spend. I think it is a great idea to have potential contractors meet face to face however, I am sure that most of the time that is not the case and can be rather difficult.
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References
Nedimyer, S. (2018, November 12). Do You Know What You’ve Spent on Freelancers This Year? Retrieved from Work Market: https://www.workmarket.com/blog/do-you-know-what-spent-freelancers-this-year