The gig economy is a term that describes the growing trend of people working as independent contractors, freelancers, or on-demand workers. The gig economy offers flexibility, autonomy, and variety for workers, as well as cost savings, scalability, and access to talent for businesses.
According to a report by Deloitte, the gig economy in Australia is estimated to be worth $15.5 billion and employ 1.5 million workers in 2020.
But what are the future trends and opportunities of the gig economy for businesses in Australia? How can they leverage the benefits of this new way of working and overcome the challenges?
At Webmob, we are passionate about helping our small and medium business partners grow and thrive in the digital age. That’s why we decided to cover this topic in our latest blog post. We believe that the gig economy is a powerful force that can transform the way businesses operate, innovate and compete in the global market.
Let’s explore some of the key aspects of the gig economy and how businesses can adapt and thrive in it.
Trends of the Gig Economy in Australia
The gig economy is not a new phenomenon, but it has been accelerated by the COVID-19 pandemic, which disrupted the traditional ways of working and created new demands and opportunities for both workers and businesses. Some of the trends that are shaping the gig economy in Australia are:
- Digital platforms: The rise of digital platforms such as Uber, Airbnb, Freelancer, Airtasker, and Upwork has enabled workers to find and offer their services online, and businesses to access a large pool of talent across different sectors and locations. These platforms also provide ratings, reviews, payments, and insurance mechanisms that facilitate trust and quality assurance between workers and businesses.
- Remote work: The pandemic has forced many businesses to adopt remote work arrangements, which have proven to be effective and productive for many workers and employers. Remote work allows workers to have more control over their time, location, and work-life balance, and businesses to reduce overhead costs, increase diversity, and tap into global talent. According to a survey by PwC, 74% of Australian workers want to continue working remotely at least one day a week after the pandemic.
- Skills gap: The rapid changes in technology, consumer preferences, and market conditions have created a skills gap in many industries, where there is a mismatch between the skills that workers have and the skills that businesses need. The gig economy can help bridge this gap by allowing businesses to access workers with specialised skills on demand, and workers to update their skills through online courses, certifications, or projects.
- Social impact: The gig economy can also have positive social impacts by creating more opportunities for workers who face barriers to employment, such as women, youth, migrants, people with disabilities, or people living in rural areas. The gig economy can also contribute to environmental sustainability by reducing commuting, office space, and resource consumption.
Opportunities of the Gig Economy for Businesses in Australia
The gig economy offers many opportunities for businesses in Australia to grow, innovate, and compete in the global market. Some of the benefits that businesses can gain from the gig economy are:
- Cost savings: By hiring gig workers instead of full-time employees, businesses can save on labour costs such as salaries, benefits, taxes, training, and recruitment. They can also adjust their workforce according to their needs and demand fluctuations, avoiding overstaffing or understaffing issues.
- Scalability: The gig economy allows businesses to scale up or down their operations quickly and easily by accessing a large and diverse pool of workers on demand. They can also expand their reach to new markets or regions by hiring local or international gig workers who have the relevant knowledge, skills, or networks.
- Innovation: The gig economy can foster innovation by bringing fresh perspectives, ideas, and solutions from different gig workers who have varied backgrounds, experiences, and expertise. Businesses can also leverage the gig economy to test new products or services with minimal risk or investment.
- Quality: The gig economy can improve the quality of work by allowing businesses to hire the best talent for each task or project based on their skills, performance, ratings, or reviews. Gig workers also tend to be more motivated, productive,and engaged than traditional employees because they have more autonomy,flexibility,and ownership over their work.
Challenges of the Gig Economy for Businesses in Australia
The gig economy also poses some challenges for businesses in Australia that need to be addressed and managed carefully. Some of the issues that businesses may face in the gig economy are:
- Regulation: The gig economy operates in a legal grey area where there is a lack of clarity and consistency on the rights and responsibilities of workers and businesses. For example, if there are disputes over whether gig workers are employees or contractors, and what benefits or protections they are entitled to,such as minimum wage,superannuation,workers’ compensation,or leave entitlements. Businesses need to comply with the relevant laws and regulations in each jurisdiction where they operate,and be prepared for potential changes or reforms in the future.
- Management: The gig economy requires a different approach to management than traditional employment models. Businesses need to adopt effective strategies and tools to communicate, coordinate, and collaborate with gig workers who may be working remotely, flexibly, or asynchronously. Businesses also need to ensure that gig workers are aligned with their vision, Values, and culture, and that they receive adequate feedback, recognition, and support.
- Security: The gig economy involves sharing sensitive information and data with gig workers who may not have the same level of loyalty, trust, or confidentiality as full-time employees. Businesses need to implement robust security measures and policies to protect their intellectual property, trade secrets, customer data, and reputation from potential breaches or leaks.
- Retention: Businesses need to retain their gig workers and build long-term relationships with them, which can be challenging in a competitive and dynamic market. They need to offer attractive incentives and rewards, such as competitive rates, flexible schedules, learning opportunities, and referrals. They also need to respect their autonomy and independence, and avoid micromanaging or overloading them with work.
The gig economy is a reality that is here to stay and grow in Australia. It offers many opportunities and benefits for businesses that can adapt and leverage it effectively, as well as some challenges and risks that need to be mitigated and managed carefully. Businesses that embrace the gig economy can gain a competitive edge in the global market by accessing a diverse, skilled, and flexible workforce that can help them achieve their goals and objectives. The gig economy is not a threat, but an opportunity for businesses in Australia.