How the Gig Economy Benefits Business and Workers

By Dennis McCafferty  |  Posted 01-05-2017 Email

Businesses are increasing their use of contingent workers, thereby creating momentum for what's called a "gig economy,"  according to recent survey research from EY. The resulting report, "Is the Gig Economy a Fleeting Fad, or an Enduring Legacy?," defines a gig economy as "an environment in which temporary positions or contingent work is common, and organizations contract independent workers for short-term engagements." Findings indicate that these employees represent a considerable portion of the total staffing base, as CIOs and other managers seek more professionals with specific skills that are lacking in their existing full-time staff. They also believe that contractual workers and temp hires can help overcome resistance to change, better positioning their organization for business and technological shifts. "The gig economy is supported and accelerated by the rise of technology and by customers who expect goods and services to arrive faster and more flexibly than ever before," the report states. "[Organizations] need access to highly skilled professionals for short-term projects to drive innovation and rapid change. At the same time, workers are looking for work opportunities that offer greater flexibility and variety. Technology is the key enabler to facilitate the nature of supply and demand, where available talent meets organizational need." More than 200 managers and an estimated 1,000 contingent workers took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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