What You Should Know About the Gig Economy (And Why You Should Care!): Part II of III

The Drivers of the Gig Economy

A shift in prioritizing values, paired with evolving technology, have been major drivers of the gig economy’s growth. Instead of devoting their entire life to a company, people want to achieve a better balance between work and home. A balance that still allows them to get their work done, but to do it on their terms.

Upwork’s 2017 study on freelancers found that they are motivated to:

1) Be their own boss

2) Choose when they work

3) Select their own projects

4) Pick where they work

5) Earn extra money

The core of four of these top five drivers are flexibility and more freedom in how work gets done, which ultimately shows a rising priority on work/life balance. Sixty-nine percent of millennials wish they had chosen jobs with better work/life balance. These days, a lack of flexibility can be a top reason for leaving a job. While earning money in the gig economy is obviously a stimulus – and may be a larger motive for freelancing in high cost of living areas like Seattle – people are freelancing by choice rather than necessity more than ever.

With many placing more value in work/life balance, the freedom and flexibility offered by freelancing and working side hustles makes it more attractive than a traditional 9 to 5. Gig workers have the authority to choose what projects they want to work on and the when and where of how that work gets done – that’s a powerful motivator. In fact, for half of the freelancers in Upwork’s study, no amount of money would persuade them to return to a traditional job!

The idea of what defines security is also changing and contributing to the gig economy. The majority of those who freelance feel that having a diversified portfolio of multiple clients is more secure than having one employer. Due to the evolution of AI and automation, many are not confident the work they do today will still be around 20 years from now. Nearly a quarter of millennials have been laid off, which is likely a by-product of the Great Recession. Feelings and experiences like these can further undermine the perception of traditional employment’s security and make freelancing or side gigs more appealing.

Another driver of freelancer growth is technology. Without technology, this rapid growth in the gig economy would not be possible. The evolution of technology has vastly expanded how and where work can be accomplished. Tools we have at our fingertips are more powerful and take up far less room than the those with similar functions 30 years ago. They are also more universally available; individuals and small businesses now have access to the same powerful tools as enterprise size organizations.

Technology makes it easier to find work as well. While friends, family, and professional contacts are often where people seek opportunities first, the many different avenues of reach offered online are a close second. This can range from an increasing presence on social media to online ads to online job boards and freelance marketplaces.

The rise of the gig economy is not because of external factors, but internal ones. Values are changing and the freedom that comes with freelancing and side hustles reflect that. The gig economy represents a nontraditional, alternative way of working that allows people to achieve their ideal work/life balance. It is not a fad that will quickly fade away, but the new state of the workforce and job market.

If you’d like to know why everyone is talking about the gig economy, check out Part I of our series. 

Next up is “Part III: What Freelancing Is Like.”

Does the better work/life balance sound ideal to you? Check out our jobs board!