Over the last 18 months, the world has fully changed as a global pandemic practically impacts every business in every field. Suddenly, businesses had to redefine how, where, and even when their staff work.
Although there is no way to minimize the epidemic’s impact on businesses, it has expedited certain changes already in the works. These changes result in a more worker-centric labor model.
The first option is to work from home. Many firms needed to employ remote workers, proving that WHERE people work has become less essential than they work at all. Technology advancements have shown that people working remotely can be as productive as working in offices.
The other factor is the growth of a more flexible work model, which was already gaining traction in the shape of gig workers.
Moreover, before the Covid-19, a third of United States workers were part of the Gig economy. The most claimed to be doing work they enjoy. Overall, the number of freelancers and digital nomads increased three times faster than the overall workforce in the United States.
They all have one quality in common: flexibility!
According to a recent Ernst & Young survey, 90 percent of workers prefer flexibility in where and when they work, with 54 percent preferring "when" over "where." Given this, it's not surprising that freelancers and nomads are increasing rapidly. However, there is more to the concept of freedom than what the present gig economy provides.
"Flexibility is truly the core of the newer workforce, and the Gig Economy was version 1.0 in terms of flexibility," says Shiftsmart CEO Aakash Kumar. "The Flex Economy – Version 2.0 – is about adapting to give workers to choose their own schedules while allowing companies to manage their workers flexibly."
Nearly 60 million people in the USA are now working in the gig economy; freelancers, digital nomads, and other independent workers face more competition than in previous years. This hints that freelancers who want to stand out and succeed in a crowded sector must employ new tactics to break through the noise.
Background of Gig Economy
Before going deeper into Gig Economy 2.0, let's define Gig Economy!
The Gig Economy, according to the Cambridge Dictionary, is a form of working in which people have temporary jobs or complete several bits of work, each paid independently, instead of working for an employer.
According to Investopedia, temporary, flexible jobs are popular in a gig economy. Businesses prefer to hire independent freelancers and contractors over full-time employees. A platform economy affects the traditional economy of full-time employees who rarely change jobs and instead pursue a lifetime career.
Main Shortcomings of the Gig Economy
For companies, failure to perform large/complex tasks is the main statement of the scope of work under the gig economy. Because work is often limited to short-term work items (Gigs/ Jobs) with a small number of stakeholders, the task is normally done by a single person or, on rare occasions, by a team of freelancers.
Task planning and execution are either manual (as in most online freelancing systems) or semi-automated (in platforms like Uber, Web3, Fiverr, Upwork, & Braintrust, etc.).
In terms of service providers, progress in one's career. Gigs are not often favorable to professional success. Gig Service providers normally give the same services to new customers daily. In the case of both categories of stakeholders, disputes: with the limited ability to effectively track scope elements, conflicts are more likely.
Before the pandemic, digital companies like GitLab, which has over 1,200 workers working remotely, were the most at ease with remote working. GitLab has created a "remote manifesto," which specifies where remote procedures diverge from conventional standards.
Remote working supports "flexible working hours over established working hours," "writing down and recording information over vocal explanations," and "asynchronous communication over the synchronous conversation," according to this document. All of these techniques would be difficult to adopt if there was no difference between the creators and users of value.
The Influence of Covid-19 on Gig Economy
Before Covid-19, firms like GitLab were few and far between outside of the software industry. Therefore, non-software firms faced certain risks in adopting practices like GitLab.
However, the Covid-19 problem has compelled firms in traditionally resistant industries to reengineer their work processes and strengthen their technology systems, which have been obstacles to alternative work arrangements. This presents a wide range of natural experiments, many of which are more relevant to a given firm's needs than software firms' expertise. This system will also help as a useful starting point for enterprises considering a shift to the platform economy model.
Covid-19 has had a positive influence on the gig economy. Since the occurrence of Covid-19, the number of average daily tasks/jobs submitted and filled on platform economics has increased.
Because the Covid-19 incident created an out-of-the-ordinary circumstance, the Gig economy is taking its time to change to the new standard due to the ongoing instability. The conditional variance of the OLI series increased at the start of the difficult year 2020, implying that the Gig economy reacted to the occurrence of Covid-19. Similarly, Covid-19 has a greater impact on OLI new job opportunities than on OLI filled jobs.
The positive link between Covid-19 and the Gig economy exists in the short term because studies have not found a long-term connection between these two variables yet.
So What is Gig Economy 2.0?
A logical evolution of the Gig economy is one where gig workers do difficult tasks effectively, delivering transparency to customers and instilling trust in the processes.
More work components and services will be fully or partially automated, resulting in greater predictability of task completion and work quality. Completion of work will be for a longer time than in the Gig economy.
Gig Economy 2.0 platforms will allow freelancers and digital nomads to attain career progression and financial security.
Admit this or not, the days of retiring from a single job are decreasing as the country's workforce transitions from full-time positions to monetary, contracted employment. Retirement as we once knew it may be redefined due to the new "Gig Economy."
Instead of the traditional concept of long-term employment and benefits, freelance marketplaces have given birth to a new working style. In this working manner, people make a living through a framework of micro-jobs.
Gig workers are among a varied range of people who work in various vocations similar to those of aspiring, novice artists. These freelancers work on individual gigs through Fiverr, Upwork, Braintrust that connect them to their target market.
In the previous 50 years, the amount of contracted or temporary workers in the United States has increased by more than 300 percent. This percentage is booming the hype of Gig economy 2.0.
Gig Economy 2.0 Includes Smarter Access
In the following years, we will see smart access control systems bring the Gig economy 2.0. This smart control will give new ways for businesses, freelancers, and end-users of the platform economy's services to collaborate.
Grocery delivery, cleaning services, home repairs, and dog walks are a few of those tasks that can benefit from increased control and efficiency when using smart access management.
More Opportunities on the Rise
There is no refuting that we are in an on-demand world. So, we're frequently rushing around daily. Individuals are on the go more than ever before, whether to work, a break, or school. Plus, gig-based businesses often feel the heat since their clients' hectic schedules often hamper their tasks.
A few platform economy professions, such as food delivery, handy work, and housework, require consumers to be home. Customers of the gig economy who have smart locks such as Kevo or August on their front doors can find the same level of ease in granting access to these contracted services by platforms. Such as Handy or Instacart integrated smart access control into their mobile apps via APIs & SDKs.
Customers may now send their handymen, dog walkers, and delivery service providers automatic digital keys from the platform economy app once the service has been scheduled. So, there's no worrying about needing to be home at an agreed-upon time.
This system allows them to enter on behalf of customers, making the on-the-go lifestyle much easier for everyone concerned. After the gigs are finished, the digital keys will be withdrawn, and the door will automatically close.
Furthermore, smart access control systems will notify consumers whenever their gig services provider enters and exits their homes. This notification allows real-time tracking of the services and boosts comfort to the experience.
Keeping Up with the Economy
"The gig economy empowers people. This emerging business concept enables individuals to effectively create their destiny and maximize the value of their existing assets." McAfee, John
Thanks to the internet revolution, we now have instant connectivity, simplifying tedious processes, and the world's information at our fingertips. The economy has shifted, and we've been presented with new services we've learned to cherish, such as Amazon Prime Now, Uber Eats, and Web3.
As customers and businesses continue to demand services from Fiverr, Web3, and Upwork, the current rate of these services will rise at a fast pace.
Our technology must adapt to this different way of living. That is why third-party platforms focus mostly on stronger APIs to generate more work opportunities and collaboration in an ever-changing world. More notably, they produce technology that can keep up with this thriving gig economy 2.0.
Let's Build a Gig Economy 2.0.
Knowing the importance of your engagement with your client is critical to the success of the platform economy and the advancement of the profession. Your relationship with your clients is something you can focus on and will not be affected by the accounting profession's hurdle.
Another aspect of disruption that we are all grappling with today is our internal clients. Your internal customers are the people and procedures used to do the work. Today's technology aims to make it easier for us to do better, not harder. Therefore, profits in today's market should grow rather than decrease. Creating Gig Economy 2.0 could be a solution!
Let's take a look at $100,000 in revenue. Suppose that this money is generated by 100 compliance or transactional contracts.
How much profit compensation do you receive for this type of revenue? I am sure that Gig Economy 2.0 will give you a road to a 50% profit margin. This is the definitive win-win situation!
What makes this possible? Pay close attention to the worth of the freelancers. We believe you can get freelancers and nomads to prepare, review and finalize these 100 jobs for a specific fee of about $ 40,000. When you consider the cost of overhead, you can see that the profitability of this type of service can be around 50%.
We can convert the current chaos of digital disruption into opportunity by focusing on internal and external customer value.
The possibility is to establish the Gig economy 2.0. Let's collaborate to disrupt the status quo and create a wholesome situation. Gig Economy 2.0 should allow you to improve profitability while freeing up time when properly set up.
Gig Economy At Norders
At Norders, we envision the future: the Gig Economy 2.0. We believe that the benefits and security of freelancing should be available to all. We also think it’s possible to offer employers a flexible workforce without counting the needless overhead or enduring benefit of the workforce.
Many economic phrases were unfamiliar to us when we became aware of their activities while working in the marketing industry in 2018-2020. Advertising agencies, production businesses, and other industry players appeared to be built on so-called freelancers.
The core staff was well-cared for, and its creative capital was our most significant competitive advantage.
However, the freelancer network's professionalism, image, and management practices have been an important component for industry players because of employer branding. In 2021, this hybrid approach seems to be employed by platform economies as well as gig economies that rely on freelancers.
We had previously given marketing activities to the workers through our limited company in the jump of 2020, in addition to our day employment. But, the side work eventually got larger than the primary job. After the pandemic began, we focused on our new major job as a marketing freelancer. The decision soon felt logical, as our own hands were no longer sufficient. So we needed more resources to complete the work assigned to us.
However, because there was no data regarding the number of customer tasks in the future, recruiting agents was not a concern at the moment. Our company's aim has always been and continues to be to expand, internationalize, and even become a leading company. In terms of seniority compensation and involvement, other participants in the sector were strongly modeling similar aims at the time.
Regardless, we had to continue with contractors, freelancers, light entrepreneurs, or self-employed - whatever their official form or reason for being termed. We did it not because it seemed wise but because we had no other choice. In that way, we provide marketing services to businesses as a company, i.e., we operate in the B2b market.
How the Gig Economy Benefited the Norders?
In terms of accelerating, we saw various practices emerge over time. Such as consumers becoming accustomed to video conferencing and using different methods of communication in our company's processes - in other words, the digitized market in which we work.
Rather than hiring and the following rounds of interviews and verification, we were able to:
sell a customer project in the morning,
use global creative marketplaces to identify a proven and reliable solution for our needs and resources,
and begin the same task in the evening.
For someone like us who had a fairly long sales career, the possibility of never selling again was a work of art in and of itself.
This was only the start, though!
We immediately noticed that as our gig worker network grew. Our company no longer needed to go to find new freelancers with each new customer order, but instead acquired several positive factors with us, our clients, and our standards.
We saved money by using the services of gig workers. Employee perks like health insurance paid vacation time, and retirement programs can cost thousands of dollars every year. According to a study from the U.S. BLS, employee benefits account for 32% of an employee's total salary. We decreased these expenses in half by hiring gig workers and reinvested the savings back into your brand.
Companies that use freelancers might save money on infrastructure costs as well. You don't need to keep an office space, computers, or other office items.
Another factor to consider was the overnight change in customer experience since we were no longer reliant on anyone's calendar or even competence. Although we are continually growing in a more data-driven direction, much of our work is still artistic and always focused on individuals doing things (customers).
We were able to shift teams in the middle of the project thanks to a network of recognized gig workers and platforms from various authors. When our network of gig factors first began to expand, we detected an adverse conscience. We thought we didn't provide the security or attitude of a wage worker to the agents.
We were able to develop risk-free without hiring anyone. Additionally, after each customer task, we could easily continue or discontinue working with freelancers without the bother of canceling employment, warrants, or breaks.
However, we discovered that this risk-free growth strategy was not totally in our favor. We've all heard the expression "there are always jobs for good guys," and the same is true for gig workers. Every day, we had to earn the love of the top gig workers by providing them with engaging tasks with a respectable commission, open communication, and even a sense of unity.
Our marketing office develops a worker-oriented organizational model as a matter of routine, taking into account the individual and the company's local and global goals as a whole.
What’s the Norder’s Concluding Viewpoint About the Gig Economy?
We believe there is a growing number of dedicated freelancers in the global marketplace in our gig economy journey. These freelancers may not succeed in the office environment, in regular working hours. These gig workers might be those who lack the educational credentials necessary to be in most companies.
At the same time, people are becoming more aware of the economic rewards of industry, plus the easier-to-achieve numerous self-development opportunities that brands provide to assure the validity of one's talents and position in the future.
Startups, which we compare solely to the so-called, are also a growing trend in the development mindset, as evidenced by the popular new wave and prominent individual leaders featured in Gig Economy 2.0.
Elon Musk, Richard Branson, and Jeff Besos all commend gig workers' strengths for enabling competitive advantage and their success in the worldwide and high-speed digital markets.
Ultimately, we feel that using freelancers will provide businesses with an incredible opportunity to identify themselves from the competition, scale expansion, and deliver better. A better form of subcontracting or using freelancers, making gig economy 2.0 a key part of the business's future path - today.
Gig Economy 2.0 — Key-Value Statements
Businesses: Make complicated workstreams available for freelancing, improving productivity, time to market, and talent access while driving down costs.
Independent Service Providers: Gain access to a larger and longer-term employment stream, reduce payment concerns, and advance your career.
Boutique Agencies: Promote healthy competition by allowing for on-demand scale-ups and scale-downs.
The Final Verdict
The transformation to the Gig Economy 2.0 is unavoidable!
Regardless, there is so much we can do to get the most out of this method and make its implementation go as smoothly as possible.
Service Delivery Method maturity is important to a company's success. All organization members should follow a consistent set of processes when performing their duties and interacting with each other. Understanding and integrating service delivery techniques would help attain success constantly.
We are all about activating the gig economy 2.0, using freelancers fairly, supporting entrepreneurship. At Norders, we believe that platforms like Fiverr, Braintrust, Upwork are the future where our younger generation can build their careers. With this gig economy, companies can build their own team of experts and thrive in business too.