Is The Gig Economy The End of Full-Time Tech Jobs?
The gig economy is one of the most discussed topics when it comes to the future of work.
But what is it, exactly?
While it has many benefits for workers, such as flexibility and freedom, it’s also had an impact on the full-time job market.
Whether you’re a tech worker considering gig work or someone looking to grow your team, it’s important to know the pros and cons of the gig economy and how it is impacting full-time tech employment.
What is the gig economy?
The gig economy references an environment where short-term job openings and contracts between businesses and consultants for short-term needs are the go-to choice.
And business is booming for Tech professionals in this economy.
The gig economy is growing
Reliable data on the number of U.S. workers operating in the gig economy may be hard to come by, but Intuit reported that by the end of the year, 52% of workers will have participated in some form of gig work.
IT and Tech professionals especially are saying goodbye to the typical 9 to 5 and opting for gig-based employment instead.
Spoiler: businesses aren’t complaining.
Likewise, Tech talent was looking for a way out of their fixed schedules for an improved work-life balance and more control over the work they do, which they’re finding through the evolving gig economy.
The benefits of the gig economy
There are several benefits of utilizing the gig economy for both employees and employers that include convenience, reliability, cost savings, and flexibility.
- The gig economy is convenient
- The gig economy offers cost savings
- The gig economy is reliable
- The gig economy offers a wider talent pool
- The gig economy is flexible
In the past decade, more and more of our clients are looking for Tech-based consultants and contract workers to handle business needs over full-time talent. So, what gives?
For employers, it comes down to a few core reasons.
The gig economy is convenient
Hiring a Tech consultant is easier to source and often a more simple onboarding process.
Turns out, finding highly specialized professionals versed in technologies and solutions created less than ten years is challenging.
Specifically in the U.S., where the Tech talent gap continues to expand. (Tell us something we don’t know.)
But hiring Tech specialists for short-term contracts or freelance opportunities is the solution many employers have been looking for.
The gig economy offers cost savings
In addition to being easier to source talent, the gig economy is cheaper. No really, it is always cheaper.
High-end Tech specialists may come with higher bill rates, but these bill rates are lower than those of full-time workers once fringe benefits, overhead costs, and other hidden costs of full-time workers are taken into account.
You’ll be surprised to learn how much full-time Tech experts actually cost your business YOY.
The other great thing about hiring consultants is you get exactly what you pay for. End of story.
This leads to more effective and accurate budget allocation for your company.
The gig economy is reliable
The gig economy provides immediate, on-demand talent for needs as they arise.
Have a cybersecurity flaw that needs immediate attention? Sourcing a cybersecurity consultant will be faster than the hiring process would be for a full-time cybersecurity employee.
When you hire a Tech-based consultant, they begin working on a solution immediately and enable you to get innovative products and solutions to the market faster. Which means more money in your pocket.
The gig economy offers a wider talent pool
The rise of AR and enhanced communication technologies enable employers to more effectively collaborate and communicate with remote consultants, regardless of their location.
Investing in the gig economy opens the door to previously unavailable, high-end Tech-consultants located around the globe.
Meaning better talent for your business.
The gig economy is flexible
For consultants themselves, the benefits of joining the gig economy outweigh the cons.
While it may be an unpredictable employment schedule for other skill sets, those with highly specialized Tech skills tend to get their pick of work.
They set their own hours, choose which employers to work for, dictate their remote work policies, and keep more of their salary thanks to tax rates that are a third for those with full-time employment.
So if the gig economy is this incredible, it must mean the end of full-time Tech professionals? Not quite.
Gig work impact on full-time jobs
The growth of gig work has impacted full-time jobs in many ways for both employers and employees including company culture, lack of benefits, and potential in decreased employee engagement.
Yes, the gig economy has lots of benefits that make us all want to ditch our 9 to 5 jobs and adopt the trendy freelance lifestyle, but it has its drawbacks as well.
Gig work impact on employers
- Impacts on company culture
- Potential decrease in commitment to the brand or business from consultants as compared to full-time employees
- Decreased employee engagement
- Increased turnover
Gig work impact on workers
- No more core benefits (think healthcare, 401K options, PTO, pension plans, etc.)
- High out-of-pocket tax payments when filing come April
- Lack of legal assurance when it comes to receiving payments for completed work in a timely manner or ever
Thanks to the Freelance Isn’t Free Act NYC consultants are safe. But not all consultants are lucky enough to be New Yorkers.
The future of the gig economy
Your customized enterprise app will need consistent and timely updates as your business expands by a Developer versed in the intricacies of it.
Or maybe you need on-site Incident Responders to identify and quickly resolve attempted hacks of your online resources.
These are business needs best handled by full-time Tech employees rather than one-off contract workers.
As useful as the gig economy is, it can’t solve all your problems.
Companies that find the balance between full-time and contract workers — we’re recommending a 30/70 split, respectively — will get the most for their money and be the innovators of tomorrow since they’ll have the benefit of speed to market.
So, to put it simply, full-time Tech experts aren’t disappearing altogether just yet.
Instead, we’re seeing the emergence of the blended workforce era.
If you lack the contract Tech talent you need to solve your immediate, short-term needs, contact Mondo today to make sure you don’t fall behind. We have the specialized IT and Tech consultants you need to balance out your own workforce. It’s time your business got with the times.
Looking to hire top-tier Tech, Digital Marketing, or Creative Talent? We can help.
Every year, Mondo helps to fill over 2,000 open positions nationwide.
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