The gig economy isn’t just an entrepreneurial buzzword - it’s a rapidly growing way of working that’s transforming how we think about employment, business and innovation and offering new opportunities for entrepreneurs and small businesses to streamline operations, reduce costs and increase agility.
As a business owner, understanding and leveraging this trend is a great way for you to stay competitive in a dynamic and fast-paced marketplace.
What is the gig economy?
The gig economy refers to a labor market that’s characterized by short-term contracts and freelancer work, rather than permanent jobs.
Instead of traditional full-time employment, workers in the gig economy take on “gigs” - tasks, projects or short-term jobs. These gigs can range from driving for a rideshare service like Uber, to developing a website, writing copy, or providing consulting services.
Why is the gig economy growing?
The gig economy has expanded significantly over the last few years. Why?
- Flexibility - modern workers and modern business alike crave flexibility. Gig workers can choose when, where and how they work, and businesses can scale their workforce up or down based on demand.
- Technology - advancements in tech have made it easier than ever for businesses to find freelancers. Platforms like Xolo, Fiverr, Upwork, and YunoJuno make connecting easy to companies can get talent on board fast.
- Economic shifts - job security is at an all-time low, so many people are opting for multiple income streams, rather than relying on a single, fallible employer. The gig economy provides people with more opportunities than ever to diversify their income.
The benefits of the gig economy for SMEs
For SMEs, the gig economy offers a range of advantages that can help streamline operations, reduce costs and increase your agility.
Access to a global talent pool
One of the biggest advantages is the ability to tap into a global talent pool. Whether you need a great graphic designer, a cool content writer or an incredible IT specialist, the gig economy allows you to find the right talent for your project, regardless of their location.
This is especially handy if you need to quickly find someone with super-niche, specialized skills.
Cost-effectiveness
Hiring gig workers often works out cheaper than hiring employees traditionally, even if the freelancer's day rates seem high on first impression. This is because you only pay for the hours you need, and there are no additional overheads like benefits, pensions or office spaces to pay for.
This allows you to manage your budget more effectively, which is particularly helpful during the early stages of running a small business.
Increased flexibility
When you're just starting a business, it's difficult to find the time to train and manage a fresh-faced team. Gig workers by nature are fast learners, as they've built a career out of quickly pivoting in and out of teams, companies and industries.
Where a trad hire might have a steep learning curve to traverse before they're a fully useful member of your team, a gig worker will simply step into the role full prepared for the challenges of your business.
The challenges of the gig economy for SMEs
While the gig economy offers many benefits, it also brings challenges that small businesses should be aware of.
Quality control
One of the biggest challenges you might face if you're hiring gig workers is maintaining quality control. Not all freelancers or contractors will deliver the same level of work, and since they're not full-time employees it's harder to enforce standards.
Legal considerations
When you're hiring gig workers, it's important to understand the legal implications, particularly around worker classification and contracts.
Misclassifying a gig worker as an independent contractor when they should be classified as an employee, or the other way around, may lead to legal issues including fines and back taxes.
How to leverage the gig economy for business success
Here's how you can make the most of the gig economy to support your small business:
- Identify tasks suitable for outsourcing - determine which tasks or projects are best suited to gig workers. Routine tasks, including regular content creation, everyday admin or graphic design are often ideal tasks to offload onto freelancers.
- Stick to reputable platforms - to find reliable gig workers, you'll should be using platforms that properly vet their freelancers and show reviews ad ratings from past clients. This'll help you weed out unsuitable candidates and identify top talent.
Financial tools and the gig economy
As the gig economy grows, so does the need for flexible business finances. Which is where wamo comes in.
At wamo, we provide business accounts that are tailor-made for the gig economy. Our features are designed to help you manage your finances more effectively, whether you're hiring freelancers or expanding your business.
#1. We make management easy with sub-accounts
Easily track the progress and budget of every project or gig worker by setting up individual sub-accounts for each contractor or piece of work.
Using a sub-accounts this way makes expense tracking super simple so you know you're always in-budget.
#2. We streamline your international payments
With wamo, you can make payments in multiple currencies without worrying about high fees or delays.
Easily onboard gig workers from around the world, and pay them in their preferred currency.
#3. We make invoicing and payment easy and quick
wamo's in-app invoicing tools allow you to create and send invoices in just a few clicks.
This ensures your freelancers always get paid on time, which will work to improve your rep as a gig employer.
Xolo & Fiverr: find your perfect freelancers
If you want to hire some gig workers, Xolo and Fiverr are both great places to start. They're both freelancer marketplaces, giving you access to a wide range of talented professionals, making it easier than ever for you to find the right skill sets for your projects. With both Xolo and Fiverr, you get:
- Vetted freelancers with diverse skill sets
- Streamlined hiring processes, with much of the admin done for you
- wamo Connect deals to save your business money, including €100 of Xolo credit for wamo customers, and 15% off your first order with Fiverr
Check out the wamo Connect homepage to explore all the offers we've currently got available.
The future of the gig economy
The gig economy is here to stay, and its influence on the business world is only going to get bigger. For entrepreneurs and small business owners, understanding and leveraging this trend is crucial to stay competitive.
At wamo, we're committed to providing you with all the tools and support you need to succeed. Our business accounts offer solutions that help you:
- Streamline financial management
- Keep control over your growing teams
- Easily expand operations globally
Final thoughts
The gig economy is transforming the way businesses operate, offering flexibility, cost-savings and access to a global talent pool.
By understanding its benefits, and the challenges it brings to the table, you can leverage tools that'll help you position your business for success. And at wamo, we're here to help you navigate this new world with confidence.
