Learn About the Advantages of Gig Economy For Businesses
Presented by your online pay stub generator 07-28-2019
The gig worker population is growing every year. More areas are getting involved in this new way of working. There is more than 30 percent of the workforce engaged in one of the types of gig work. Some are a desk and computer-related jobs, others are Taxing or rental of part of the living space. The advantages for the worker are the flexible working hour and working remotely.
The gig workers may have their advantages with this kind of working relationship. Their employers are business people, and they would not deal with the gig workers unless they would have benefits and advantages using the gig workers. Otherwise, they would not bother to deal with someone that may be overseas.
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Although they are benefited from employing independent contractors or gig workers, as they are called when they are freelancers or Uber drivers. Some businesses are using only a few gig workers for temporary jobs, and other companies are based on gig workforce. You may find more information bu reading the study conducted by Buffer,
57 percents of companies are saving money by using gig talent
43% percent of businesses that are using gig workers are saving at least 20% on the payroll. Global economic uncertainty is likely to have a significant effect on the move towards the use of gig workers.
The commitment to the short term save the business the long term commitment of contracting an employee that will be paid on the payroll. The gig worker can enter to work in short time. They are trained professionals that are used to take a project in a short time.
By the nature of their business, the gig workers are motivated to do a good job. Their interest is to get good reviews on their website place where they present their skills. On this website that they show and offer their skills, and their clients will look for someone to do the work for them.
There is the benefits issue that you can Learn what taxes you will pay as a contractor or an employee. Also, here, 31% of the average employees total compensation package. That is a significant difference between the cost of a gig and a workman’s compensation that will be quite significant.
Businesses can avoid payroll taxes, and the Income-tax withholdings this is the responsibility of the gig worker. Independent contractors pay their tax and benefit by themselves. So it is a relative saving, as a mature gig worker will look for enough many for the tax and Gig workers impact the insurance industry. Those who hire freelancers can sometimes avoid this cost, though it may be risky to save this money and use the gig workers if the employer is accused of misclassifying workers. It may be a “Pandora’s box” for employers.
92% of young people prefer working from home or coworking space: business can enjoy it by accepting the idea.
According to a Frobs study, 87% of millennials would choose to work on to their schedule. The demographic changes in the workforce have a significant influence on the shifting towards more gig economy.
Currently, 81 percent of managers who hire freelancer or gig workers are the same age as the gig workers. Millennials now are 40 percent of the workforce, with many invested taking executive and managerial positions. Naturally, it is easier for the same generation people to have a common language and work together.
Embracing the gig economy gives an edge to the companies that had done it. The flexibility in changing the workforce size according to the needs is en significant advantage on those businesses that are still acting in the old fashion way of having all the workforce coming every day to the workplace.
Fifty percent of millennials are stating that they look for diversity and inclusiveness in a new workplace. Businesses the use gig workers have a better option to select talents from a bigger pool that includes women minorities, and people from emerging countries and for some jobs like writing they can use older people with a lifetime experience.
42% of companies use contingent workers for seasonal demands
The seasonal businesses can use seasonal gig workers to fulfill a need at the short time of the season. Construction and landscaping and agriculture can enjoy having enough workers for a short time and no obligation for the rest of the year.
For example, during the Christmas season, there are many temporary hired worker for delivery and service in stores and restaurants. Many of these were temporary workers placed through agencies.
Those who seek a full-time job may stay out of these temporary jobs, but many others will be happy to get a job for a short time.
36% of companies use independent contractors (gig) for the benefit of being temporal
When it comes to hiring employees, it is a time-consuming process. Recruited takes posting ads, selectin of an applicant for the first interview, and then the second interview and the training and onboarding and adapting to the workplace culture. While a freelancer should get the job and have to deliver it finished in perfect quality. Any issue with a freelancer can end the relationship and look for a better one.
26 percent of the businesses are using freelancers and gig workers as a way to build the first level of contact with promising talents
In this way, the companies save money and time in locating possible candidates for recruiting new staff.
The growing gig economy is positive for the companies. Being open to the gig workforce saves on the recruiting efforts. No doubt that the gig working communities are an attractive source of the workforce. Looking forward, the employers will financially enjoy using gig workforce.
There is a lot to do to avoid bad practices. The gig economy is adjusting itself on the social benefit that is not paid and deducted from the paycheck. Business can fall into misclassification issue with the authorities. Gig workers are looking for ways to have their Health and life insurance, unemployment safety, and retirement funds. To cover the benefits, they will need more money that will come from their clients, which means higher costs of using a gig worker. Businesses have to remember that the gig worker has to pay taxes too, so not all their income is a net gain.
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