Explore the synergy of technology and the gig economy. See how technological advances are reshaping flexible working and opening doors to new opportunities!
In 2019, the Department of Labor estimated that the percentage of workers involved in the gig economy in the United States would increase to 43% in 2020. But since the pandemic hit the world, it is reasonable to assume that the actual number has far exceeded these expectations, with many workers fully satisfied. time employees exploring different job options.
Today, people with different skill sets, experiences, and education levels are pursuing nontraditional careers. The 9-to-5 office job is on its way to becoming a thing of the past. Although the gig economy has been around for more than a century, new technologies have made it even more possible for workers to thrive in these areas of work and made companies better able to find the right talent – coinciding with the explosion of this trend.
What is the gig economy?
The gig economy describes a scenario where independent workers seek independent, part-time or flexible arrangements and contracts, as opposed to more permanent, full-time roles. Ride-sharing services are one example: Drivers are not full-time employees of companies like Uber and Lyft, but rather act as service providers and are paid for the ride.
While not always necessarily performed remotely, gig work often takes place off-site. Either way, technology plays a key role in connecting people in this world, helping workers find jobs and companies or clients find people to fill them.
How does technology make this possible?
Connectivity and Communication
The gig economy is based on the idea of connecting individuals and the services they need. Through tools such as apps, people can book trips, rent their homes, sell products, do odd jobs and much more. These apps often make it possible for customers and clients to chat and communicate with suppliers – the gig workers – for seamless delivery of goods and services.
Aspiring workers can also find jobs and side hustles through apps. For example, TaskRabbit connects people looking for services like moving, shopping, and handyman work with temporary workers capable and willing to perform these short-term tasks.
Communication is also more simplified. Companies and individuals can communicate with each other from virtually any location, enabling companies to find specialized talent that may not be available nearby. If freelancers work for companies abroad, for example, they can discuss projects through tools like Skype and Slack.
The cloud
The advent of cloud computing has made it possible for workers to access programs, files and other important tools that are essential for carrying out their work, whether to monitor tasks, collaborate on documents and/or manage contacts.
The cloud also helps service providers and businesses access a constant flow of talent and work, with information accessible from anywhere with a digital connection. There's no need to send confidential documents via email: the cloud provides security and a repository for files.
Big data
The explosion of data generated by individuals and companies allows organizations to assess patterns and behaviors in potential workers. This allows them to better identify potential workers with the skills and talents needed to complete specific projects.
This benefits not only hiring organizations, who can more easily and quickly find the right candidate for positions, but also the workers themselves, who will stand out to recruiters based on the qualities these agencies are looking for. This is particularly useful for temporary workers, who need to ensure they are a good fit for temporary and short-term assignments so they can build a good track record and secure future clients and clients.
Artificial intelligence
Some people fear that technologies like artificial intelligence (AI) will make human workers obsolete in certain industries. However, in many cases, AI can actually work with employees rather than replacing them entirely.
In the gig economy, for example, recruitment agencies can better match workers to jobs, or automated applicant tracking systems (ATS) can scour resumes to find the best fit. Or, in the sharing economy, AI can help match temporary workers with clients and assignments based on various criteria established by the client or client.
Blockchain
Blockchain, an immutable and decentralized ledger that facilitates secure and fast transactions between parties, is an important tool that can be used to help protect gig workers. Technology is already affecting countless industries.
As the nature of this work depends on short-term assignments and is often not governed by a comprehensive contract, temporary workers and their clients may fear that a breach of trust may occur, with the worker not delivering agreed results or the client not pay the agreed price. Blockchain technology, however, will allow workers and customers to establish immutable contracts, verify skills and credentials, and carry out fast and seamless transactions.
Mobile technology
Mobile technology, in many ways, is at the heart of the gig economy. It's true that gig work has been around for a long time, but it couldn't be what it is today without mobile devices. We've discussed how apps fuel connectivity between workers and customers, but mobile technology also contributes to the gig economy in many other ways.
Using the phone's GPS, for example, ride-hailing drivers can identify where passengers need to be picked up and how they can get to their destination. Passengers can also text or call their drivers en route via a number provided by the service, protecting the privacy of both parties. Meanwhile, home sharers can share their location with a renter so they can find the home easily.
Technology has fundamentally changed and strengthened the gig economy. As new technologies and possibilities emerge, we can expect this world of work to expand even further.
